BT 2015 Annual Report Download - page 206

204 BT Group plc
Annual Report 2015
 reconciliation fro net cash inow fro operatin activities the ost directl coparable  easure to reported adusted and noralised free
cash ow is set out below.
Year ended 31 March
2015
£m
2014
£m
2013
£m
1HWFDVKLQƮRZIURPRSHUDWLQJDFWLYLWLHV   
dd bac pension deficit paents876 325 325
,QFOXGHGLQFDVKƮRZVIURPLQYHVWLQJDFWLYLWLHV
Net capital expenditure before purchases of telecommunications licences 1  
Purchases of telecommunications licences ––0
Interest received 1069
ales of non-current financial assets 844
,QFOXGHGLQFDVKƮRZVIURPƬQDQFLQJDFWLYLWLHV
Interest paid 90 1 01
5HSRUWHGIUHHFDVKƮRZ   
et cash outow fro specific ites 154 356 366
$GMXVWHGIUHHFDVKƮRZ   
dd bac deduct
Purchases of telecommunications licences – – 202
ash ta benefit of pension deficit paents 10  0
1RUPDOLVHGIUHHFDVKƮRZ   
Net debt
et debt consists of loans and other borrowins both current and non-current less current asset investents and cash and cash euivalents. oans
and other borrowings are measured as the net proceeds raised, adjusted to amortise any discount over the term of the debt. For the purpose of this
measure, current asset investments and cash and cash equivalents are measured at the lower of cost and net realisable value. Our net debt calculation
starts fro the epected future undiscounted cash ows that should arise when our financial instruents ature. e adust these cash ows to
reect heded riss that are re-easured under fair value hedes as well as for the ipact of the eective interest ethod. urrenc denoinated
balances within net debt are translated to Sterling at swap rates where hedged.
Net debt is a measure of the group’s net indebtedness that provides an indicator of the overall balance sheet strength. It is also a single measure that
can be used to assess both the group’s cash position and indebtedness. There are material limitations in the use of alternative performance measures
and the use of the term net debt does not necessarily mean that the cash included in the net debt calculation is available to settle the liabilities
included in this measure.
et debt is considered to be an alternative perforance easure as it is not defined in . he ost directl coparable  easure is the
areate of loans and other borrowins current and non-current current asset investents and cash and cash euivalents.  reconciliation fro
these to net debt is given below.
At 31 March
2015
£m
2014
£m
Loans and other borrowings 9,768 9,814
Less:
Cash and cash equivalents  9
Current asset investments  1
 
Adjustments:
To retranslate debt balances at swap rates where hedged by currency swaps  
o reove accrued interest applied to reect the eective interest ethod and fair value adustents  9
Net debt  