|Interest payable on borrowings held at amortised cost(1)||227.0||198.1|
|Fair value (gains)/losses 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)||37.5||4.3|
|Fixed interest rate swaps(4)||0.8||46.2|
|Net receipts on swaps and debt under fair value option||(14.4)||(16.1)|
|Net fair value (gains)/losses on debt and derivative instruments(6)||(24.3)||26.3|
- Includes an £80.7 million (2016: £37.9 million) non-cash inflation uplift expense in relation to the group's index-linked debt.
- Includes foreign exchange losses of £119.7 million (2016: £62.1 million), excluding those on instruments measured at fair value through profit or loss. These losses are largely offset by fair value gains on derivatives.
- Includes an £11.9 million loss (2016: £15.1 million gain) 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 intends 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 £15.4 million income (2016: £16.5 million) due to net interest on swaps and debt under fair value option.
Interest payable is stated net of £29.2 million (2016: £21.3 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 3.0 per cent (2016: 2.7 per cent) to expenditure on such assets as prescribed by IAS 23 'Borrowing Costs'.