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23 FINANCIAL INSTRUMENTS continued
Forward foreign exchange contracts in relation to the Group’s forecast currency requirements are designated as cash flow hedges
with fair value movements recognised directly in equity. To the extent that these hedges cover actual currency payables or
receivables then associated fair value movements previously recognised in equity are recorded in the income statement in
conjunction with the corresponding asset or liability.
Forward foreign exchange contracts in relation to the hedging of the Group’s foreign currency intercompany loans are designated as
held for trading with fair value movements being recognised in the income statement. The corresponding fair value movement of the
intercompany loan balance results in an overall nil impact on the income statement.
Gains and losses in equity on forward foreign exchange contracts as of 31 March 2007 will be released to the income statement
at various dates over the following 14 months from the balance sheet date.
With the exception of the Group’s fixed rate bond debt and the partnership liability (see note 22), there were no material differences
between the carrying value of non-derivative financial assets and financial liabilities and their fair values as at the balance sheet date.
The carrying value of the Group’s fixed rate bond debt was £1,177.3m (last year £915.0m), the fair value of this debt was £1,162.9m
(last year £940.8m).
24 PROVISIONS
UK Overseas
restructuring restructuring Total
£m £m £m
At 3 April 2005 35.2 9.7 44.9
Provided in the year 5.8 – 5.8
Released in the year (3.5) – (3.5)
Utilised during the year (18.2) (0.8) (19.0)
Exchange differences – 0.1 0.1
At 1 April 2006 19.3 9.0 28.3
At 2 April 2006 1
199..3399..002288..33
Provided in the year 2
2..00––22..00
Released in the year (
(11..11))––((11..11))
Utilised during the year (
(66..11))((00..55))((66..66))
Exchange differences –
–((00..11))((00..11))
At 31 March 2007 14.1 8.4 22.5
Analysis of total provisions:
2007 2006
£m £m
Current 5.7 9.2
Non-current 16.8 19.1
TToottaall pprroovviissiioonnss22.5 28.3
The provision for UK restructuring primarily relates to costs of closing Lifestore, restructuring of the Direct operation and head
office restructuring.
The provision for overseas restructuring costs primarily relates to future closure costs in respect of discontinued operations in
Continental Europe.
The non-current provisions relate to closure costs of discontinued operations in Continental Europe, the closure of Lifestore
operations and the restructuring of Direct operations and are expected to be utilised over a period of 15 years.
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