Telstra 2015 Annual Report Download - page 127

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Telstra Corporation Limited and controlled entities 125
Notes to the Financial Statements (continued)
NOTE 18. FINANCIAL RISK MANAGEMENT (continued)
_Telstra Financial Report 2015
18.1 Risk and mitigation (continued)
(a) Interest rate risk (continued)
(a) Refer to Table I, which details the use of cross currency and
interest rate swaps used to hedge offshore and domestic
borrowings.
(b) Weighted average rates earned on net positive cash balances
after taking into account bank set-off arrangements and
excluding non-interest bearing balances.
(c) Weighted average effective interest rate based on principal/
notional value as at reporting date.
(d) Includes final pay legs $654 million (2014: $603 million) as
described in Table J. The balances offset by receive legs relating to
hedges of forecast purchases, trade and other non-interest
bearing liabilities of $654 million (2014: $318 million).
Table A Telstra Group
As at 30 June 2015 As at 30 June 2014
Principal/
notional
Weighted
average (c)
Principal/
notional
Weighted
average (c)
$m % $m %
Australian interest rates
Fixed rate instruments
Post hedge borrowings (a) (7,124) 6.66 (6,200) 7.26
Finance lease payable (272) 5.79 (250) 6.14
Domestic borrowings (1,061) 7.12 (1,056) 7.14
Offshore borrowings (140) 6.10 (140) 6.10
Variable rate instruments
Cash and cash equivalents (b) 502 2.32 5,162 3.15
Post hedge borrowings (a) (5,837) 4.00 (7,145) 4.58
Domestic borrowings (3) 4.90 (499) 6.50
Loans from associates (34) 8.00 --
Commercial paper (154) 2.28 (100) 2.84
Net forward contract liability (d) - - (285) 2.41
Total Australian dollar instruments (14,123) (10,513)
Foreign interest rates
Fixed rate instruments
Finance lease payable (72) 8.92 (59) 9.41
Offshore borrowings (10) 11.00 (4) 11.06
Variable rate instruments
Cash and cash equivalents (b) 894 1.44 365 1.84
Total foreign dollar instruments 812 302
Other interest bearing financial assets
Fixed rate instruments - Australian interest rates
Finance lease receivable 303 6.02 277 6.13
Amounts owed by joint ventures 451 12.00 451 12.00
Floating rate instruments - foreign interest rate
Other receivables 4 4.33 3 2.86
Total other financial assets 758 731