|Interest payable on borrowings held at amortised cost(1)||198.1||206.1|
|Fair value losses/(gains) on debt and derivative instruments(2)|
|Fair value hedge relationships:|
|Financial instruments at fair value through profit or loss:|
|Borrowings designated at fair value through profit or loss(3)||4.3||65.0|
|Fixed interest rate swaps(4)||46.2||133.5|
|Net receipts on swaps and debt under fair value option||(16.1)||(2.5)|
|Net fair value losses on debt and derivative instruments(6)||26.3||104.7|
|Net pension interest expense (see note 18)||–||7.0|
- Includes a £37.9 million (2015: £46.6 million) non-cash inflation uplift expense in relation to the group's index-linked debt.
- Includes foreign exchange losses of £62.1 million (2015: £10.5 million gains), excluding those on instruments measured at fair value through profit or loss. These losses/gains are largely offset by fair value gains/losses on derivatives.
- Includes a £15.1 million gain (2015: £4.6 million loss) on the valuation of debt reported at fair value through profit or loss due to changes in credit spread assumptions.
- These swap contracts are not designated within an IAS 39 hedge relationship and are, as a result, classed as 'held for trading' under the accounting standard. These derivatives form economic hedges and, as such, management intend to hold these through to maturity.
- Includes fair value movements in relation to other economic hedge derivatives relating to debt held at amortised cost.
- Includes £16.5 million income (2015: £4.0 million) due to net interest on swaps and debt under fair value option.
Interest payable is stated net of £21.3 million (2015: £20.9 million) borrowing costs capitalised in the cost of qualifying assets within property, plant and equipment and intangible assets during the year. This has been calculated by applying a capitalisation rate of 2.7 per cent (2015: 3.1 per cent) to expenditure on such assets as prescribed by IAS 23 'Borrowing Costs'.