Section image

Cherries
oil on canvas
22 x 20 in
1981

Penny Machines
oil on canvas
23¾ x 29¾ in
1961

Stack of Books
oil on canvas
30 x 24 in
n.d.

Seven Suckers
oil on canvas
19 x 23 in
1970

Twin Jackpots
oil on canvas
30 x 46 in
1962

Ties
oil on canvas
20 x 26 in
1980

Cake Slices
oil on canvas
20 x 16 in
n.d.

Notes 6-10

For the year ended 31 December 2010

6. Finance income, finance costs and revaluation of financial instruments

Finance income includes:

  2010
£m
2009
£m
2008
£m
Expected return on pension plan assets (note 23) 30.6 28.7 31.3
Income from available for sale investments 9.3 10.2 9.7
Interest income 41.8 111.5 128.6
  81.7 150.4 169.6

Finance costs include:

  2010
£m
2009
£m
2008
£m
Interest on pension plan liabilities (note 23) 45.9 46.1 38.9
Interest on other long-term employee benefits 1.9 1.3 1.6
Interest payable and similar charges1 229.0 308.0 278.9
  276.8 355.4 319.4

Revaluation of financial instruments2 include:

  2010
£m
2009
£m
2008
£m
Movements in fair value of treasury instruments 21.8 8.4 (13.9)
Revaluation of put options over non-controlling interests (3.6) 15.3 (11.5)
Gains on termination of hedge accounting on repayment of TNS debt 25.2
  18.2 48.9 (25.4)
Notes
1
Interest payable and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost.
2
Financial instruments are held at fair value through profit and loss.

The majority of the Group’s long-term debt is represented by $1,250 million of US dollar bonds at an average interest rate of 6.9% (prior to any interest rate swaps or cross-currency swaps), €1,850 million of Eurobonds at an average interest rate of 5.52% (prior to any interest rate or currency swaps) and £1,050 million of sterling bonds including convertible bonds at an average interest rate of 5.96%.

Average borrowings under the Revolving Credit Facilities (note 10) amounted to the equivalent of $818 million at an average interest rate of 0.85% inclusive of margin.