9. Finance Costs and Finance Income
Continuing Operations
|
2017 €m |
2016 €m |
2015 €m |
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|
Finance costs |
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|
Interest payable on borrowings |
300 | 337 | 334 | |||||||||
|
Net loss/(income) on interest rate and currency swaps |
2 | (10) | (32) | |||||||||
|
Mark-to-market of derivatives and related fixed rate debt: |
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|
- interest rate swaps (i) |
16 | 14 | 12 | |||||||||
|
- currency swaps and forward contracts |
- | (3) | 4 | |||||||||
|
- fixed rate debt (i) |
(23) | (20) | (22) | |||||||||
|
Net loss on interest rate swaps not designated as hedges |
6 | 7 | 7 | |||||||||
|
Net finance cost on gross debt including related derivatives |
301 | 325 | 303 | |||||||||
|
Finance income |
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|
Interest receivable on loans to joint ventures and associates |
(5) | (4) | (4) | |||||||||
|
Interest receivable on cash and cash equivalents and other |
(7) | (4) | (4) | |||||||||
|
Finance income |
(12) | (8) | (8) | |||||||||
|
Finance costs less income |
289 | 317 | 295 | |||||||||
|
Other financial expense |
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|
Premium paid on early debt redemption |
18 | - | 38 | |||||||||
|
Unwinding of discount element of provisions for liabilities (note 26) |
24 | 30 | 19 | |||||||||
|
Unwinding of discount applicable to deferred and contingent acquisition consideration (note 19) |
7 | 24 | 20 | |||||||||
|
Pension-related finance cost (net) (note 28) |
11 | 12 | 17 | |||||||||
|
Total |
60 | 66 | 94 | |||||||||
|
Total net finance costs |
349 | 383 | 389 | |||||||||
| (i) | The Group uses interest rate swaps to convert fixed rate debt to floating rate. Fixed rate debt, which has been converted to floating rate through the use of interest rate swaps, is stated in the Consolidated Balance Sheet at adjusted value to reflect movements in underlying fixed rates. The movement on this adjustment, together with the offsetting movement in the fair value of the related interest rate swaps, is included in finance costs in each reporting period. |