Reported results - 2006
Reconciliation of movements in net debt - Interim

Reconciliation of movements in net debt

Six months ended 30 June 2006

Net debt comprises current and non-current borrowings, derivative financial instrument assets and liabilities, and cash and cash equivalents, excluding all accrued interest.

 

Six
months
ended
30 June 2006
US$m(1)

Six
months
ended
30 June 2006
£m

Six
months
ended
30 June 2005
£m

Year ended
31 Dec. 2005
£m

Decrease in cash and cash equivalents

(55)

  

(29)

  

(605)

  

(536)

(Increase) / decrease in borrowings

(137)

  

(74)

  

667

  

626

Change in net debt resulting from cash flows

(192)

  

(103)

  

62

  

90

Exchange differences

32

  

17

  

46

  

4

Acquisitions (excluding cash and cash equivalents)

(33)

  

(18)

  

-

  

-

Other non-cash movements including revaluation of derivative financial instruments

7

  

4

  

3

  

4

(Increase) / decrease in net debt in the period

(186)

  

(100)

  

111

  

98

Opening net debt

(3,951)

  

(2,136)

  

(2,234)

  

(2,234)

Closing net debt

(4,137)

  

(2,236)

  

(2,123)

  

(2,136)

Net debt in the cash flow statement is reconciled to the balance sheet as follows :

Non-current assets :

 

  

 

  

 

  

 

- derivative financial instruments

-

  

-

  

39

  

36

Current assets :

 

  

 

  

 

  

 

- derivative financial instruments

19

  

10

  

17

  

32

- cash and cash equivalents

364

  

197

  

147

  

221

Non-current liabilities :

 

  

 

  

 

  

 

- borrowings

(3,117)

  

(1,685)

  

(2,122)

  

(1,594)

- derivative financial instruments

(19)

  

(10)

  

-

  

-

Current liabilities :

 

  

 

  

 

  

 

- borrowings

(1,433)

  

(775)

  

(205)

  

(816)

- derivative financial instruments

(46)

  

(25)

  

(54)

  

(43)

Net debt including accrued interest

(4,232)

  

(2,288)

  

(2,178)

  

(2,164)

Less : accrued interest included within the above headings

95

  

52

  

55

  

28

Net debt in the cash flow

(4,137)

  

(2,236)

  

(2,123)

  

(2,136)

Cash and cash equivalents in the cash flow statement is reconciled to the balance sheet as follows :

Cash and cash equivalents per balance sheet

364

  

197

  

147

  

221

Less : accrued interest

(3)

  

(1)

  

-

  

(2)

Cash and cash equivalents in the cash flow statement

361

  

196

  

147

  

219
               

  1. US dollar equivalents are provided for reader convenience at the 30 June 2006 exchange rate of £1 : US$1.850.

Source : interim results 2006 news release