Notes 1-5
- 1 Operating profit
- 2 Restructuring and synergy costs
- 3 Finance income and expense
- 4 Taxation
- 5 Earnings per $0.25 Ordinary Share
3 FINANCE INCOME AND EXPENSE
| 2007 $m |
2006 $m |
2005 $m |
|
|---|---|---|---|
| Finance income | |||
| Returns on fixed deposits and equity securities | 52 | 29 | 15 |
| Returns on short-term deposits | 298 | 330 | 197 |
| Expected return on post-employment defined benefit plan assets | 573 | 518 | 448 |
| Fair value gains on debt, interest rate swaps and investments | 36 | 11 | – |
| Net exchange gains | – | – | 5 |
| 959 | 888 | 665 | |
| Finance expense | |||
| Interest on debt and commercial paper | (513) | (59) | (42) |
| Interest on overdrafts and other financing costs | (9) | (13) | (19) |
| Interest on post-employment defined benefit plan liabilities | (539) | (475) | (433) |
| Fair value charges on debt, interest rate swaps and investments | (6) | – | (6) |
| Net exchange losses | (3) | (14) | – |
| (1,070) | (561) | (500) | |
| Net finance (expense)/income | (111) | 327 | 165 |
The amount of exchange gains and losses recognised in income, other than those arising on financial instruments measured at fair value through profit or loss in accordance with IAS 39 (see Note 17), is losses of $3m (2006 $14m losses, 2005 $5m gains).
