Skip Links

Menu Links

Notes to the Company Financial Statements

6. Derivative financial instruments

The Company’s outstanding derivative financial instruments are as follows:

All figures in millions 2007 2006
Gross notional amounts Assets Liabilities Gross notional amounts Assets Liabilities
Interest rate derivatives – in a fair value
hedge relationship
522 18 (8) 953 20 (17)
Interest rate derivatives – not in hedge
relationship
796 7 (8) 1,026 9 (2)
Cross currency rate derivatives 150 26 410 57
Total 1,468 51 (16) 2,389 86 (19)
Analysed as expiring:
In less than one year 320 28 976 50
Later than one year and not later
than five years
796 13 (8) 1,005 26 (4)
Later than five years 352 10 (8) 408 10 (15)
Total 1,468 51 (16) 2,389 86 (19)

The carrying value of the above derivative financial instruments equals their fair value. Fair values are determined by using market data and the use of established estimation techniques such as discounted cash flow and option valuation models.

Back to top ^