BT 2012 Annual Report Download - page 58

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55
Performance
1,800
1,200
1,500
600
900
0
300
2017
2015
2016
2025
2024
2037
2038
2036
2019
2018
2021
2020
2023
2022
2029
2028
2027
2026
2031
2030
2033
2032
2035
2034
2013
2014
Maturity profile of term debt and average coupon rate
£m
£ debt
$ swapped to £
€ swapped to £
5.8%
6.1%
7.5%
8.8%
6.9%
8.7% 8.7%
3.3%
9.7%
6.4%
Net debt
The movement in our net debt position in 2012 was as follows:
£m
At 1 April
2011 Cash flow
Foreign
exchange
and fair
value
movements Other
At
31 March
2012
Bank overdrafts 26 (17) (1) – 8
Debt due within
1 year 459 766 – 1,654 2,879
Debt due after
1 year 9,371 (14) (104) (1,654) 7,599
Cash and cash
equivalents (351) 18 2 – (331)
Investments (19) (517) 12 11 (513)
9,486 236 (91) 11 9,642
Adjustments (670) – 110 – (560)
Total 8,816 236 19 11 9,082
In addition to term debt of £1.7bn, debt due within one year totalling
£2.9bn at 31 March 2012 comprised commercial paper of £0.6bn,
other loans of £0.3bn and accrued interest of £0.3bn. A detailed
breakdown of our loans and other borrowings is provided in note 24 to
the consolidated financial statements.
Adjustments to net debt
Our definition of net debt measures balances at the expected value of
future undiscounted cash flows due to arise on the maturity of financial
instruments and removes the balance sheet adjustments made from the
re-measurement of hedged risks under fair value hedges and the use
of the effective interest method. Currency denominated balances are
retranslated to Sterling at swap rates where hedged.
Adjustments to net debt were as follows:
At 31 March
2012
£m
2011
£m
Movement
£m
Impact of cross-currency swapsa(228) (408) 180
Removal of accrued interest
and fair value adjustmentsb(332) (262) (70)
Total (560) (670) 110
a Retranslation of debt balances at swap rates where hedged by cross-currency swaps.
b Removal of accrued interest applied to reflect the effective interest rate method and fair value
adjustments.
The adjustment to retranslate our debt balances to Sterling at swap
rates to reflect the impact of hedging reduced by £180m in 2012,
principally due to the 6% weakening of the Euro against Sterling in the
year. This was partly offset by a 0.3% strengthening in the US Dollar.
The adjustment to net debt to remove the impact of fair value hedge
accounting and the use of the effective interest method increased by
£70m in 2012 principally due to lower Sterling interest rates.
Borrowing facilities
We have a £1.5bn committed borrowing facility which is available until
March 2016, none of which had been drawn down at 31March 2012.
Debt maturity analysis
The maturity profile of our term debt and average coupon rate is shown
in the graph below. Out of total gross debt of £9.9bn, £1.7bn of term
debt is repayable in 2013.
Group financial performance
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information