Notes to the consolidated financial statements – analysis of items in the primary statements

1. Segmental analysis	10. Earnings per share	19. Trade and other receivables
2. Other operating income	11. Goodwill	20. Cash and cash equivalents
3. Operating costs	12. Other intangible assets	21. Borrowings
4. Exceptional items, remeasurements and stranded cost recoveries	13. Property, plant and equipment	22. Trade and other payables
5. Pensions and other post-retirement benefits	14. Other non-current assets	23. Other non-current liabilities
6. Finance income and costs	15. Financial and other investments	24. Provisions
7. Taxation	16. Deferred tax assets and liabilities	25. Share capital
8. Discontinued operations	17. Derivative financial instruments	26. Reconciliation of movements in total equity
9. Dividends	18. Inventories and current intangible assets	27. Consolidated cash flow statement

21. Borrowings

The following table analyses borrowings, including bank overdrafts:

	2008 £m	2007 £m
Current
Bank loans	502	136
Bonds	2,545	849
Commercial paper	562	–
Finance leases	256	10
Other loans	7	30
Bank overdrafts	10	6
	3,882	1,031
Non-current
Bank loans	1,541	930
Bonds	15,287	13,544
Finance leases	165	92
Other loans	128	120
	17,121	14,686
Total borrowings	21,003	15,717

Total borrowings are repayable as follows:

	2008 £m	2007 £m
In one year or less	3,882	1,031
In more than one year, but not more than two years	1,386	1,869
In more than two years, but not more than three years	1,413	1,011
In more than three years, but not more than four years	1,700	748
In more than four years, but not more than five years	1,302	1,411
In more than five years:
by instalments	78	116
other than by instalments	11,242	9,531
	21,003	15,717

The fair value of borrowings at 31 March 2008 was £20,208m (2007: £15,919m). Market values, where available, have been used to determine fair value. Where market values are not available, fair values have been calculated by discounting cash flows at prevailing interest rates.

Charges over property, plant and other assets were provided as collateral over borrowings totalling £388m at 31 March 2008 (2007: £418m).

The notional amount outstanding of the debt portfolio at 31 March 2008 was £21,143m (2007: £16,042m).

Collateral is placed with or received from any counterparty where we have entered into a credit support annex to the ISDA Master Agreement once the current mark-to-market valuation of the trades between the parties exceeds an agreed threshold. Included in current bank loans is £345m (2007: £134m) in respect of cash received under collateral agreements. Cash placed under collateral agreements is shown in note 15.

Obligations under finance leases at the balance sheet dates are analysed as follows:

	2008 £m	2007 £m
Gross finance lease liabilities repayable as follows:
In one year or less	266	17
In more than one year, but not more than five years	120	48
In more than five years	99	94
	485	159
Less: finance charges allocated to future periods	(64)	(57)
	421	102
The present value of finance lease liabilities is as follows:
In one year or less	256	10
In more than one year, but not more than five years	94	21
In more than five years	71	71
	421	102

For further details of our bonds in issue and borrowing facilities, refer to note 35.

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