Barclays 2010 Annual Report Download - page 239

34 Discontinued operations continued
The Group has provided BlackRock with customary warranties and indemnities in connection with the sale. Barclays will also continue to indemnify
securities lending arrangements until 30th November 2012 (included within contingent liabilities in Note 25) and provide support to certain BGI cash
funds until December 2013 in the form of credit derivatives (included within derivative liabilities in Note 14) and financial guarantees (included within
provisions in Note 24).
In addition, Barclays, BlackRock and their respective affiliates also enter into agreements and transactions with one another in the ordinary course of their
respective businesses and on an arm’s length commercial basis, subject to applicable regulation and agreements with relevant regulators.
In connection with its financing of its acquisition of BGI, BlackRock entered into a 364-day revolving credit facility with a group of lenders including
Barclays, who is also acting as revolving agent. Of the $2bn credit facility, $0.8bn was committed by other lenders and following completion BlackRock
had borrowed or notified to be borrowed $1.5bn under the facility. All amounts borrowed under this facility were repaid and the facility was terminated
prior to 31st December 2009.
The disposed BGI business has been treated as a discontinued operation, the results of which are set out below. For the year ended 31st December
2009 the results are for the 11 month period up to the date of disposal (1st December 2009). There were no discontinued operations in 2010.
2010
£m
2009
£m
2008
£m
Net interest income –33 –
Net fee and commission income –1,759 1,916
Net trading income/(loss) –67 (10)
Other income –4 10
Total income –1,863 1,916
Operating expenses excluding amortisation of intangible assets –(1,123) (960)
Amortisation of intangible assets –(14) (15)
Operating expenses –(1,137) (975)
Profit before tax from discontinued operations –726 941
Tax on discontinued operations –(237) (337)
Profit after tax from discontinued operations –489 604
Profit on disposal of discontinued operations –6,331 –
Tax on disposal –(43) –
Net profit on the disposal of the discontinued operation –6,288 –
Profit after tax from discontinued operations, including gain on disposal –6,777 604
Other comprehensive income relating to discontinued operations is as follows:
2010
£m
2009
£m
2008
£m
Available for sale assets –10 (9)
Currency translation reserve –(85) 133
Tax relating to components of other comprehensive income –17 (10)
Other comprehensive income, net of tax from discontinued operations –(58) 114
The cash flows attributable to the discontinued operations were as follows:
2010
£m
2009
£m
2008
£m
Cash Flows from discontinued operations
Net cash flows from operating activities –333 524
Net cash flows from investing activities –(25) (93)
Net cash flows from financing activities –(550) (362)
Effect of exchange rates on cash and cash equivalents –(134) 217
Net cash flows from discontinued operations –(376) 286
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 237
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