REG - Imperial Tobacco Gp - Half Yearly Report <Origin Href="QuoteRef">IMT.L</Origin> - Part 3

Imperial BrandsAnnouncement

15/07/2015 16:11

- Part 3: For the preceding part double click  ID:nRSF3020Mb 

 7                 
 Cross currency swaps                338           69            88                
 Assets                              1,150         585           643               
                                                                                   
 Interest rate swaps and options     (890)         (705)         (733)             
 Forward foreign currency contracts  (13)          (6)           (7)               
 Cross currency swaps                (7)           (179)         (53)              
 Collateral                          84            110           102               
 Liabilities                         (826)         (780)         (691)             
                                     324           (195)         (48)              
 
 
The valuation techniques used are based on observable market data (level 2)
and are consistent with those applied during the year ended 30 September
2014. 
 
12  Retirement Benefit Schemes 
 
Actuarial valuations for the Group's retirement benefit plans are updated
annually as at 30 September. An interim update is carried out at 31 March for
the main plans. As part of this interim update, the most material plan assets
are revalued based on market data at the period end and the liabilities for
the most significant schemes are recalculated to reflect key changes in
membership data and revised actuarial assumptions. 
 
13  Share Capital and Treasury Shares 
 
The Group suspended its share buyback programme in July 2014 following the
announcement to purchase certain assets in the USA. Consequently the Group did
not purchase any of its own shares during the six months ended 31 March 2015.
During the six months ended 31 March 2014 the Group purchased 10,141,000
shares at a cost of £237 million. 
 
14  Proposed US acquisitions 
 
In July 2014, the Group entered into a purchase agreement with Reynolds
American Inc. for the acquisition of assets, including a portfolio of US
brands, plus the national sales force, offices and production facilities
currently owned by Lorillard Inc.  The transaction remains subject to the
acquisition of Lorillard by Reynolds which requires US anti-trust approval. 
It is anticipated that the approval processes are likely to be completed in
spring 2015 and that the assets will be acquired for a cash consideration of
$7.1 billion in the second half of our 2015 financial year. 
 
Costs of £20 million were incurred in the six months ended 31 March 2015 (year
ended 30 September 2014 £13 million) in relation to the transaction, and have
been excluded from our adjusted results in line with our accounting policy. 
 
This information is provided by RNS
The company news service from the London Stock Exchange