Tesco 2001 Annual Report Download - page 34

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32 TESCO PLC
NOTES TO THE FINANCIAL STATEMENTS continued
NOTE 19 Net debt
Group Company
2001 2000 2001 2000
£m £m £m £m
Due within one year: Bank and other loans 1,389 832 1,312 1,327
Finance leases 24 15 – –
Due within one to two years: Bank and other loans 207 266 207 127
Finance leases 11 13 – –
Due within two to five years: Bank and other loans 284 272 284 272
Finance leases 6 11 – –
Due wholly or in part by
instalments after five years: Finance leases – 27 – –
Due otherwise than by
instalments after five years: Bank and other loans 1,417 970 1,328 1,093
Gross debt 3,338 2,406 3,131 2,819
Less: Cash at bank and in hand 279 88 – –
Money market investments and deposits 255 258 2 21
Net debt 2,804 2,060 3,129 2,798
NOTE 20 Financial instruments
An explanation of the objectives and policies for holding and issuing financial instruments is set out in the operating and financial review on pages
2 to 6. Other than where they have been included in the currency risk disclosures, short-term debtors and creditors have been excluded from
the following analysis.
Analysis of interest rate exposure and currency of financial liabilities
The interest rate exposure and currency profile of the financial liabilities of the Group at 24 February 2001 after taking into account the effect
of interest rate and currency swaps were:
Floating rate Fixed rate 2001 Floating rate Fixed rate 2000
liabilities liabilities Total liabilities liabilities Total
£m £m £m £m £m £m
Currency
Sterling 1,311 1,159 2,470 1,186 512 1,698
Euro 16 152 168 104 147 251
Thai baht 323 – 323 235 – 235
Other 377 – 377 222 – 222
Gross liabilities 2,027 1,311 3,338 1,747 659 2,406
Fixed rate financial liabilities
2001 2000
Weighted Weighted Weighted Weighted
average average time average average time
interest rate for which interest rate for which
24 Feb 2001 rate is fixed 26 Feb 2000 rate is fixed
% Years % Years
Currency
Sterling 6.5 9 6.7 15
Euro 5.7 2 5.8 3
Weighted average 6.5 9 6.7 12
Floating rate liabilities bear interest at rates based on relevant LIBOR equivalents.The interest rate profile of the Group has been further managed
by the purchase of interest rate caps with an aggregate notional principal of £100m (2000 – £100m), an average strike price of 8.3% and a one and
a half year maturity. The current value of these contracts, if realised, is nil (2000 – nil). Additionally, forward start interest rate swaps were outstanding
at the year end, fixing the interest cost at 6.3% on £385m of debt for four years from October 2001 and on £300m for three years from October
2002 (2000 – nil). Retail Price Index linked funding of £200m, maturing 2016, was issued during the year and has been classified as fixed rate debt.
The interest rate payable on this debt is 4.0% and the principal is linked to the Retail Price Index.