Notes to the consolidated financial statements
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6. Net finance costs
All figures in £ millions | Notes | 2009 | 2008 |
---|---|---|---|
Interest payable | (92) | (106) | |
Finance costs in respect of retirement benefits | 25 | (12) | – |
Net foreign exchange losses | (7) | (11) | |
Other losses on financial instruments in a hedging relationship: | |||
– fair value hedges | (1) | (7) | |
Other losses on financial instruments not in a hedging relationship: | |||
– derivatives | (10) | (12) | |
Finance costs | (122) | (136) | |
Interest receivable | 7 | 17 | |
Finance income in respect of retirement benefits | 25 | – | 8 |
Other gains on financial instruments in a hedging relationship: | |||
– fair value hedges | 4 | 2 | |
– net investment hedges | – | 1 | |
Other gains on financial instruments not in a hedging relationship: | |||
– amortisation of transitional adjustment on bonds | 3 | 1 | |
– derivatives | 13 | 16 | |
Finance income | 27 | 45 | |
Net finance costs | (95) | (91) | |
Analysed as: | |||
Net interest payable | (85) | (89) | |
Net foreign exchange losses reflected in adjusted earnings | – | (7) | |
Finance (costs)/income in respect of retirement benefits | 25 | (12) | 8 |
Net finance costs reflected in adjusted earnings | (97) | (88) | |
Other net finance income/(costs) | 2 | (3) | |
Total net finance costs | (95) | (91) |
The £3m net gain (2008: £5m net loss) on fair value hedges comprises a £96m gain (2008: £156m loss) on the underlying bonds offset by a £93m loss (2008: £151m gain) on the related derivative financial instruments.