TIDMAG99
RNS Number : 4131W
GlaxoSmithKline Capital PLC
26 April 2016
Publication of GlaxoSmithKline Capital plc
Annual Report 2015
Today, 26 April 2016, GlaxoSmithKline Capital plc (the "Company")
published on the GlaxoSmithKline Group ("GSK") website, www.gsk.com,
its Annual Report in respect of the year ended 31 December 2015.
In compliance with Listing Rule 9.6.1 of the UK Financial Conduct
Authority ('FCA'), copies of Company's 2015 Annual Report, have
been submitted to the UK Listing Authority's National Storage
Mechanism and will shortly be available for inspection at http:/www.morningstar.co.uk/UK/NSM.
In accordance with the FCA's Disclosure and Transparency Rules
4.1 and 6.3.5, Appendix A to this announcement contains the Company's
2015 Annual Report, which includes a description of the principal
risks and uncertainties affecting it together with a responsibility
statement.
V A Whyte
Company Secretary
26 April 2016
Cautionary statement regarding forward-looking statements
GSK and the Company cautions investors that any forward-looking
statements or projections made by GSK and the Company, including
those made in this announcement, are subject to risks and uncertainties
that may cause actual results to differ materially from those
projected. Such factors include, but are not limited to, those
described 'Principal risks and uncertainties' in Appendix A of
this announcement and under 'Risk factors' in the 'Investor information"
section in the GSK Annual Report 2015 included as exhibit 15.2
to the GSK Annual Report on Form 20-F for 2015.
APPENDIX A
GlaxoSmithKline Capital plc
(Registered number: 2258699)
Annual Report
for the year ended 31 December 2015
Registered office address:
980 Great West Road
Brentford
Middlesex
TW8 9GS
GlaxoSmithKline Capital plc
Registered number: (2258699)
Strategic report for the year ended 31 December 2015
The Directors present their strategic report on GlaxoSmithKline
Capital plc (the "Company") for the year ended 31 December 2015.
Principal activities
The Company is a member of the GlaxoSmithKline Group of companies
(the "Group") and issues notes under the Group's European and
US Medium Term Note programme and provides financing and financial
services to other Group entities.
The Directors do not envisage any change to the nature of the
business in the foreseeable future.
Review of business
The Company made a profit for the financial year of GBP8,749k
(2014: GBP6,734k), which will be transferred to reserves. The
Directors are of the opinion that the current level of activity
and the year end financial position are satisfactory and will
remain so in the foreseeable future.
At 31 December 2015, the Company had in issue GBP7,333,954k Euro
Medium Term Notes and GBP2,708,365k US Medium Term Notes (2014:
GBP8,744,819k and GBP3,189,406k respectively) which mature at
dates between 2017 and 2045. All notes currently in issue pay
interest on a fixed rate basis.
During the year, two bonds that were issued under the Group's
European and US Medium Term Note programmes matured during the
year; they were the 3.875% EUR1.6 billion European Medium Term
Note in July 2015 and the 0.75% US$1 billion US Medium Term Note
in May 2015.
Principal risks and uncertainties
The Directors of GlaxoSmithKline plc manage the risks of the Group
at a group level, rather than at an individual business unit level.
For this reason, the Company's Directors believe that a discussion
of the Group's risks would not be appropriate for an understanding
of the development, performance or position of the Company's business.
The principal risks and uncertainties of the Group, which include
those of the Company, are discussed in the Group's 2015 Annual
Report which does not form part of this report.
Key Performance Indicators (KPIs)
The Directors of the Group manage the Group's operations on a
business sector basis. For this reason, the Company's directors
believe that analysis using key performance indicators for the
Company is not necessary or appropriate for an understanding of
the development, performance or position of the Company's business.
The development, performance and position of the Group are discussed
in the Group's 2015 Annual Report which does not form part of
this report.
First time adoption of FRS 101
In the current year, the company has adopted Financial Reporting
Standard 100 "Application of Financial Reporting Requirements"
("FRS 100") and Financial Reporting Standard 101 "Reduced Disclosure
Framework" ("FRS 101"). In previous years, the financial statements
were prepared in accordance with applicable UK accounting standards.
This change in the basis of preparation has not materially altered
the recognition and measurement requirements previously applied
in accordance with applicable accounting standards.
On behalf of the Board
A Walker
For and on behalf of Glaxo Group Limited
Corporate Director
26 April 2016
GlaxoSmithKline Capital plc
Registered number: (2258699)
Directors' report for the year ended 31 December 2015
Details of expected future developments of the Company have been
included in the Strategic Report on page 1.
Results and dividends
The Company's results for the financial year are shown in the
Income statement on page 8.
No dividend is proposed to the holders of Ordinary Shares in respect
of the year ended 31 December 2015 (2014: GBPnil).
Internal controls and risk management systems
Risk management is an important factor in the long-term success
of the Group. Sound risk management to address inherent risks
help protect and maintain focus on the fundamentals.
The Group's aim is to identify, assess and manage risk at all
levels of the organisation. Employees are expected to take accountability
for identifying and escalating encountered risks so they can be
appropriately managed. This approach allows the Company to take
a balanced view on the type of risk exposure whilst enabling the
Company to pursue its strategic objectives. This is further explained
in the Group's 2015 Annual Report which does not form part of
this report.
Financial risk management
The Company issues notes under the Group's European and US Medium
Term Note programme in order to meet anticipated funding requirements.
The strategy is to diversify liquidity sources using a range of
facilities and to maintain broad access to funding markets. Details
of derivative financial instruments and hedging and further information
on risk management policies, exposures to market, credit and liquidity
risk are disclosed in Note 2(j) and 4 respectively.
Previously in 2012, the Company entered into US dollar Government
treasury base rate Locks to manage interest rate risk on its forecasted
3, 7 and 30 year US dollar debt issued under the Group's Euro
Medium Term Note programme.
At 31 December 2015, none of the Company's total debt issuances
were exposed to floating interest rates and interest is paid on
a fixed rate basis.
Directors and their interests
The Directors of the Company who were in office during the year
and up to the date of signing the financial statements were as
follows:
S P Dingemans
Edinburgh Pharmaceutical Industries Limited
Glaxo Group Limited
No Director had, during the year or at the end of the year, any
material interest in any contract of significance to the Company's
business, with the exception of the Corporate Directors, where
such an interest may arise in the ordinary course of business.
Directors' indemnity
Each of the Directors benefits from an indemnity given by the
Company under its articles of association. This indemnity is in
respect of liabilities incurred by the Directors in the execution
and discharge of their duties.
GlaxoSmithKline Capital plc
Registered number: (2258699)
Directors' report for the year ended 31 December 2015
In addition, each of the Directors, who is an individual, benefits
from an indemnity given by another Group company, GlaxoSmithKline
Services Unlimited. This indemnity is in respect of liabilities
arising out of third party proceedings to which the Director is
a party by virtue of his or her engagement in the business of
the Company.
The following interests of the Directors in office at the year
end in the shares of the ultimate parent undertaking, GlaxoSmithKline
plc, have been notified to the Company
.
----------------------------------------------------------------------
Ordinary Shares
----------------------------------------------------------------------
Name At 31.12.14 Acquired Disposed At 31.12.15
------------------------------- ------------ ----------------------------- ----------- ------------
S P Dingemans 90,951 109,706 (70,860) 129,797
------------------------------- ------------ ----------------------------- ----------- ------------
Exercised/
Options At 31.12.14 Granted lapsed At 31.12.15
-------------------------------- ------------ ----------------------------- ----------- ------------
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S P Dingemans - 38,840 (38,840) -
-------------------------------- ------------ ----------------------------- ----------- ------------
Exercised/
ShareSave At 31.12.14 Granted lapsed At 31.12.15
-------------------------------- ------------ ----------------------------- ----------- ------------
S P Dingemans 764 266 (310) 720
------------------------------- ------------ ----------------------------- ----------- ------------
Exercised/
Performance Share Plan awards At 31.12.14 Granted lapsed At 31.12.15
-------------------------------- ------------ ----------------------------- ----------- ------------
S P Dingemans 588,050 222,407 (198,623) 611,834
------------------------------- ------------ ----------------------------- ----------- ------------
Exercised/
Deferred Annual Bonus Plan At 31.12.14 Granted lapsed At 31.12.15
-------------------------------- ------------ ----------------------------- ----------- ------------
S P Dingemans 132,514 35,384 (68,440) 99,458
------------------------------- ------------ ----------------------------- ----------- ------------
All share awards are over Ordinary shares of GlaxoSmithKline plc.
The details of the above-mentioned Plans are disclosed in the
2015 Annual Report of GlaxoSmithKline plc.
Statement of Directors' responsibilities
The Directors are responsible for preparing the Directors' report
and the financial statements in accordance with applicable law
and regulations.
Company law requires the Directors to prepare financial statements
for each financial year. Under that law, the Directors have elected
to prepare the financial statements in accordance with United
Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards), including FRS 101 "Reduced Disclosure Framework"
("FRS 101") and applicable law. Under company law, the Directors
must not approve the financial statements unless they are satisfied
that they give a true and fair view of the state of affairs of
the Company and of the profit or loss of the Company for that
period.
In preparing these financial statements, the Directors are required
to:
l select suitable accounting policies and then apply them consistently;
l make judgements and accounting estimates that are reasonable
and prudent;
GlaxoSmithKline Capital plc
Registered number: (2258699)
Directors' report for the year ended 31 December 2015
l
state whether applicable UK accounting standards, including
FRS 101, have been followed, subject to any material departures
disclosed and explained in the financial statements;
l notify the Company's shareholders in writing about the use
of disclosure exemptions, if any, of FRS 101 used in the preparation
of the financial statements; and
l prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time
the financial position of the Company and enable them to ensure
that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
Disclosure of information to auditors
As far as each of the Directors are aware, there is no relevant
audit information of which the Company's auditors are unaware,
and the Directors have taken all the steps that ought to have
been taken to make themselves aware of any relevant audit information
and to establish that the Company's auditors are aware of that
information.
Independent auditors
PricewaterhouseCoopers LLP are willing to continue in office as
auditors and resolutions dealing with their reappointment and
remuneration will be proposed at a General Meeting of the Company.
On behalf of the Board
A Walker
For and on behalf of Glaxo Group Limited
Corporate Director
26 April 2016
GlaxoSmithKline Capital plc
Independent auditors' report to the members of GlaxoSmithKline
Capital plc
Report on the financial statements
Our opinion
In our opinion, GlaxoSmithKline Capital plc's financial statements
(the "financial statements"):
l give a true and fair view of the state of the company's affairs
at 31 December 2015 and of its profit for the year then ended;
l have been properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice; and
l have been properly prepared in accordance with the requirements
of the Companies Act 2006.
What we have audited
The financial statements, included within the Directors' report
and financial statements (the "Annual Report"), comprise:
l the Balance sheet at 31 December 2015;
l the Income Statement and the Statement of comprehensive income
for the year then ended;
l the Cash flow statement for the year then ended;
l the Statement of changes in equity for the year then ended;
and
l the notes to the financial statements, which include a summary
of significant accounting policies and other explanatory information.
The financial reporting framework that has been applied in the
preparation of the financial statements is United Kingdom Accounting
Standards, comprising FRS 101 "Reduced Disclosure Framework", and
applicable law (United Kingdom Generally Accepted Accounting Practice).
In applying the financial reporting framework, the directors have
made a number of subjective judgements, for example in respect
of significant accounting estimates. In making such estimates,
they have made assumptions and considered future events.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, the information given in the Strategic report and
Directors' report for the financial year for which the financial
statements are prepared, is consistent with the financial statements.
Other matters on which we are required to report by exception
Adequacy of accounting records and information and explanations
received
Under the Companies Act 2006, we are required to report to you
if, in our opinion:
l we have not received all the information and explanations we
require for our audit; or
l adequate accounting records have not been kept, or returns
adequate for our audit have not been received from branches
not visited by us; or
l the financial statements are not in agreement with the accounting
records and returns.
We have no exceptions to report arising from this responsibility.
GlaxoSmithKline Capital plc
Independent auditors' report to the members of GlaxoSmithKline
Capital plc
Directors' remuneration
Under the Companies Act 2006, we are required to report to you
if, in our opinion, certain disclosures of directors' remuneration
specified by law are not made. We have no exceptions to report
arising from this responsibility.
Responsibilities for the financial statements and the audit
Our responsibilities and those of the Directors
As explained more fully in the Statement of Directors' responsibilities
as set out on page 3, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give
a true and fair view.
Our responsibility is to audit and express an opinion on the financial
statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland) ("ISA (UK & Ireland)").
Those standards require us to comply with the Auditing Practices
Board's Ethical Standards for Auditors.
The report, including the opinions, has been prepared for and only
for the company's members as a body in accordance with Chapter
3 of Part 16 of the Companies Act 2006 and for no other purpose.
We do not, in giving these opinions, accept or assume responsibility
for any other purpose or to any other person to whom this report
is shown or into whose hands it may come save where expressly agreed
by our prior consent in writing.
What an audit of financial statements involves
We conducted our audit in accordance with ISA (UK & Ireland). An
audit involves obtaining evidence about amounts and disclosures
in the financial statements sufficient to give reasonable assurance
that the financial statements are free from material misstatement,
whether caused by fraud or error. This includes an assessment of:
l whether the accounting policies are appropriate to the company's
circumstances and have been consistently applied and adequately
disclosed;
l the reasonableness of significant accounting estimates made
by the directors; and
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l the overall presentation of the financial statements.
We primarily focus our work in the areas by assessing the directors'
judgements against available evidence, forming our own judgements,
and evaluating the disclosures in the financial statements.
We test and examine information, using sampling and other auditing
techniques, to the extent we consider necessary to provide a reasonable
basis for us to draw conclusions. We obtain audit evidence through
testing the effectiveness of controls, substantive procedures or
a combination of both.
In addition, we read all the financial and non-financial information
in the Annual Report to identify material inconsistencies with
the audited financial statements and to identify any information
that is apparently materially incorrect based on, or materially
inconsistent with, the knowledge acquired by us in the course of
performing the audit. If we become aware of any apparent material
misstatements or inconsistencies, we consider the implications
for our report.
GlaxoSmithKline Capital plc
Independent auditors' report to the members of GlaxoSmithKline
Capital plc
Other matter
The company has passed a resolution in accordance with Section
506 of the Companies Act 2006 that the senior statutory auditor's
name should not be stated.
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
26 April 2016
-- The maintenance and integrity of the GlaxoSmithKline plc website
is the responsibility of the directors; the work carried out
by the auditors does not involve consideration of these matters
and, accordingly, the auditors accept no responsibility for
any changes that may have occurred to the financial statements
since they were initially presented on the website.
-- Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from legislation
in other jurisdictions.
GlaxoSmithKline Capital plc
Income statement
for the year ended 31 December 2015
2015 2014
Notes GBP'000 GBP'000
Other operating income 6 547 683
-------------------------------------------- ------ ---------- ----------
Operating profit 547 683
Finance income 8 394,271 408,331
Finance expense 9 (383,849) (400,444)
============================================ ====== ========== ==========
Net finance income 10,422 7,887
============================================ ====== ========== ==========
Profit on ordinary activities before
income tax 10,969 8,570
Income tax expense on ordinary activities 10 (2,220) (1,836)
============================================ ====== ========== ==========
Profit for the financial year 8,749 6,734
-------------------------------------------- ------ ---------- ----------
The results disclosed above for both the current year and prior
year relate entirely to continuing operations.
There is no difference in either the current year or prior year
between the profit on ordinary activities before income tax and
the profit for the financial year stated above and their historical
cost equivalents.
The notes on pages 13 to 25 are an integral part of these financial
statements.
GlaxoSmithKline Capital plc
Statement of comprehensive income
for the year ended 31 December 2015
2015 2014
Notes GBP'000 GBP'000
Profit for the financial year 8,749 6,734
Items that may be subsequently reclassified
to the Income statement:
Fair value movements on cash flow hedges - (2,775)
Reclassification of cash flow hedges
to the Income statement 954 626
Deferred tax on cash flow hedges 10 (433) 2,609
=============================================== ====== ======== ========
Other comprehensive income for the financial
year 521 460
=============================================== ====== ======== ========
Total comprehensive income for the financial
year 9,270 7,194
----------------------------------------------- ------ -------- --------
The notes on pages 13 to 25 are an integral part of these financial
statements.
GlaxoSmithKline Capital plc
Balance Sheet
As at 31 December 2015
2015 2014
Notes GBP'000 GBP'000
----------------------------------------------------- ------ ------------- -------------
Current assets
----------------------------------------------------- ------ ------------- -------------
Other receivables 11 10,166,218 12,074,919
- including GBP9,986,490k (2014: GBP10,008,530k)
due after more than one year
Cash and cash equivalents 2 3
----------------------------------------------------- ------ ------------- -------------
Total current assets 10,166,220 12,074,922
Creditors: amounts falling due within
one year 12 (104,207) (2,010,305)
-----------------------------------------------------
Net current assets 10,062,013 10,064,617
===================================================== ====== ============= =============
Total assets less current liabilities 10,062,013 10,064,617
===================================================== ====== ============= =============
Creditors: amounts falling due after
more than one year 12 (10,042,319) (10,054,193)
----------------------------------------------------- ------ ------------- -------------
Net assets 19,694 10,424
----------------------------------------------------- ------ ------------- -------------
Capital and reserves
Called up share capital 17 100 100
Other reserves 18 (9,914) (10,435)
Retained earnings 18 29,508 20,759
------
Total shareholders' funds 19,694 10,424
----------------------------------------------------- ------ ------------- -------------
The notes on pages 13 to 25 are an integral part of these financial
statements.
The financial statements on pages 8 to 25 were approved by the
Board of Directors on 26 April 2016 and were signed on its behalf
by:
A Walker
For and on behalf of Glaxo Group Limited
Corporate Director
GlaxoSmithKline Capital plc
Statement of changes in equity
for the year ended 31 December 2015
Called
up share Other Retained Total shareholders'
capital reserves earnings funds
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------
At 1 January 2014 100 (10,895) 14,025 3,230
-------------------------------- ---------- ---------- ---------- --------------------
Profit for the financial year - - 6,734 6,734
Other comprehensive income
for the financial year - 460 - 460
-------------------------------- ---------- ---------- ---------- --------------------
At 31 December 2014 100 (10,435) 20,759 10,424
Profit for the financial year - - 8,749 8,749
Other comprehensive income
for the financial year - 521 - 521
================================ ========== ========== ========== ====================
At 31 December 2015 100 (9,914) 29,508 19,694
-------------------------------- ---------- ---------- ---------- --------------------
The notes on pages 13 to 25 are an integral part of these financial
statements.
GlaxoSmithKline Capital plc
Cash flow statement
for the year ended 31 December 2015
2015 2014
Notes GBP'000 GBP'000
-------------------------------------------- ------ ------------ ------------
Net cash inflow / (outflow) from operating
activities 15 1,788,448 (1,943,913)
-------------------------------------------- ------ ------------ ------------
Cash flow from investing activities
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Fair value loss on cash flow hedges - (2,775)
-------------------------------------------- ------ ------------ ------------
Net cash outflow from investing activities - (2,775)
-------------------------------------------- ------ ------------ ------------
Cash flow from financing activities
Long-term loans issued - 1,963,410
Repayment of short-term loans (1,780,815) -
Decrease in loans with Group undertakings (7,634) (16,723)
-------------------------------------------- ------ ------------ ------------
Net cash (outflow)/inflow from financing
activities (1,788,449) 1,946,687
-------------------------------------------- ------ ------------ ------------
Decrease in cash in the year (1) (1)
-------------------------------------------- ------ ------------ ------------
Cash at beginning of year 3 4
Decrease in cash (1) (1)
============================================ ====== ============ ============
Cash at end of year 2 3
-------------------------------------------- ------ ------------ ------------
The notes on pages 13 to 25 are an integral part of these financial
statements.
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
1 Presentation of the financial statements
General information
GlaxoSmithKline Capital plc (the "Company") is a member of GlaxoSmithKline
Group and issues US and Euro Medium Term Notes and provides financing
and financial services to other Group entities.
The company is a public company and is incorporated and domiciled
in the UK (England). The address of the registered office is 980 Great
West Road, Brentford, Middlesex TW8 9GS.
2 Summary of significant accounting policies
The principal accounting policies applied in the preparation of these
financial statements are set out below. These policies have been consistently
applied, unless otherwise stated.
(a) Basis of preparation
The financial statements have been prepared in accordance with Financial
Reporting Standard 100 "Application of Financial Reporting Requirements"
("FRS 100") and Financial Reporting Standard 101 "Reduced Disclosure
Framework" ("FRS 101"). The principal accounting policies adopted
in the preparation of the financial statements are set out below.
These financial statements have been prepared on the going concern
basis under the historical cost convention, and in accordance with
the Companies Act 2006.
First time application of FRS 100 and 101
In the current year, the Company has adopted FRS 100 and FRS 101.
In previous years, the financial statements were prepared in accordance
with applicable UK accounting standards.
Under previous applicable UK accounting standards, the Company adopted
FRS 26 "Financial Instruments: Measurement" and the effect of this
was the revaluation of financial assets and liabilities to fair value,
including the valuation of derivative instruments at market rates.
Therefore, the change in the basis of preparation to FRS 100 and FRS
101 has not altered in any way the recognition and measurement requirements
previously applied in accordance with applicable accounting standards.
Consequently, there has been no change to the opening Balance sheet,
equity and the prior year Income statement. The principal accounting
policies are also unchanged from the prior year.
Disclosure exemptions adopted
In preparing these financial statements, the Company has taken advantage
of all disclosure exemptions conferred by FRS 101. Therefore these
financial statements do not include:
l Paragraph 38 of IAS 1 "Presentation of financial statements" comparative
information requirements in respect of:
(i) paragraph 79(a) (iv) of IAS 1;
l The following paragraphs of IAS 1 "Presentation of financial statements":
- 10(f) (a balance sheet as at the beginning of the preceding
period when an entity applies an accounting policy retrospectively
or make a retrospective restatement of items in its financial
statements, or when it reclassifies items in its financial
statements;
- 16 (statement of compliance with all IFRS);
- 38B-D (additional comparative information); and
- 40A-D (requirements for a third balance sheet);
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
l Paragraph 30 and 31 of IAS 8 "Accounting policies, changes in accounting
estimates and errors" (requirement for the disclosure of information
when an entity has not applied a new IFRS that has been issued
but is not yet effective);
l Paragraph 17 of IAS 24 "Related party disclosures" (key management
compensation); and
l The requirements in IAS 24 "Related party disclosures" to disclose
related party transactions entered into between two or more wholly
owned members of a group.
The financial statements of GlaxoSmithKline plc can be obtained as
described in note 2(b).
The preparation of financial statements in conformity with FRS 101
requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying
the company's accounting policies. The areas involving a higher degree
of judgement or complexity, or areas where assumptions and estimates
are significant to the financial statements are disclosed in Note
3.
(b) Consolidation
The Company is a wholly owned subsidiary of GlaxoSmithKline plc, a
company registered in England and Wales and is the Company's ultimate
parent undertaking and controlling party. The largest and smallest
group of undertakings for which group financial statements are prepared
and which include the results of the Company are the consolidated
financial statements of GlaxoSmithKline plc. Copies of the consolidated
financial statements can be obtained from the Company Secretary, GlaxoSmithKline
plc, 980 Great West Road, Brentford, Middlesex TW8 9GS. The immediate
parent undertaking is SmithKline Beecham Limited. These financial
statements are separate financial statements.
(c) Foreign currency transactions
Foreign currency transactions are booked in functional currency of
the company at the exchange rate ruling on the date of the transaction.
Foreign currency monetary assets and liabilities are translated into
functional currency at rates of exchange ruling at the balance sheet
date. Exchange differences are included in the income statement. The
functional and presentation currency of the Company is Pounds Sterling.
(d) Other operating income and expense
Management service fees are recognised in other operating income on
an accruals basis.
(e) Finance income and expense
Finance income and expenses are recognised on an accruals basis using
the effective interest method.
(f) Financial assets
Classification
The Company classifies its financial assets as loans and receivables.
Management determines the classification of its financial assets at
initial recognition.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed
or determinable payments that are not quoted in an active market.
They are included in current assets and are shown on the Balance sheet
under other receivables. The Company's loans and receivables comprise
amounts owed by Group undertakings.
Recognition and measurement
Loans and receivables are carried at amortised cost using the effective
interest method.
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
(g) Cash and cash equivalents
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Cash and cash equivalents comprise cash in hand, current balances
with banks and similar institutions and highly liquid investments
with maturities of three months or less. They are readily convertible
into known amounts of cash and have an insignificant risk of changes
in value.
(h) Other payables
These comprise US and Euro Medium Term Notes and are stated at the
amount of net proceeds adjusted to amortise the finance cost of debt
using the effective interest rate method over the term of the debt.
(i) Taxation
Current tax is provided at the amounts expected to be paid at the
rates that have been enacted or substantively enacted by the balance
sheet date.
Deferred tax is provided in full, on temporary differences arising
between the tax bases of assets and liabilities and their carrying
amounts in the financial statements. Deferred tax assets are recognised
to the extent that it is probably that future taxable profits will
be available against which the temporary differences can be utilised.
Deferred tax is provided using rates of tax that have been enacted
or substantively enacted by the balance sheet date.
(j) Derivative financial instruments and hedging
Derivative financial instruments can be used by the Company to manage
exposure to market risks. The Company does not hold or issue derivative
financial instruments for trading or speculative purposes and does
not currently hold any derivative instruments.
Changes in the fair value of derivatives designated as cash flow hedges
are recognised in other comprehensive income to the extent that the
hedges are effective. Ineffective portions are recognised in profit
or loss immediately. Amounts deferred in other comprehensive income
are reclassified to the income statement when the hedged item affects
profit or loss.
Changes in the fair value of any derivative instruments that do not
qualify for hedge accounting are recognised immediately in the income
statement.
The Company carries a balance in other comprehensive income that arose
from using the Government treasury base rate Locks for pre-hedging
fluctuations in long-term interest rates when pricing bonds issued
in prior years.
3 Key accounting judgements and estimates
In preparing the financial statements, management is required to make
estimates and assumptions that affect the amounts of assets, liabilities,
revenue and expenses reported in the financial statements. Actual
amounts and results could differ from those estimates. The following
are considered to be the key accounting judgements and estimates made.
(a) Taxation
Current tax is provided at the amounts expected to be paid, and deferred
tax is provided on temporary differences between the tax bases of
assets and liabilities and their carrying amounts, at the rates that
have been enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognised to the extent that it is probable
that future taxable profits will be available against which the temporary
differences can be utilised, based on management's assumptions relating
to the amounts and timing of future taxable profits.
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
4 Financial risk management
Risk management is carried out by Corporate Treasury under policies
and procedures approved by the Group's Board of Directors on 8 July
2015. The role of Corporate Treasury is to monitor and manage the
Group's external and internal funding requirements and financial risks,
covering foreign exchange, interest rate, liquidity, and credit risks,
in support of the Group's strategic objectives. A Treasury Management
Group meeting, chaired by the Group's Chief Financial Officer, also
takes place on a monthly basis to review treasury activities.
(a) Market risk
(i) Foreign exchange risk
The company is exposed to foreign exchange risk arising from various
currency exposures, primarily with respect to the US dollar and
Euro, in respect of bonds issued under the European Medium Term
Note programme.
The net proceeds of bond issuances received are advanced as loans
to other Group undertakings in the same currency which minimises
the foreign translation exposure within the Company. On this basis,
foreign exchange risk is not considered material and the Company
has not prepared a sensitivity analysis.
(ii) Interest rate risk
The Company's interest rate risk arises from long-term borrowings.
Borrowings issued at variable rates expose the Company to cash
flow interest rate risk which is partially offset by cash held
at variable rates. Borrowings issued at fixed rates expose the
Company to fair value interest rate risk.
The Group's objective is to minimise the effective net interest
cost and to balance the mix of debt at fixed and floating interest
rates over time. The policy on interest rate risk management limits
the amount of floating interest payments to a prescribed percentage
of operating profit. At 31 December 2015, GBPnil (2014: GBPnil)
of the Company's total borrowings were exposed to floating interest
rates. On this basis, interest rate risk is not considered material
and the Company has not prepared a sensitivity analysis.
Currency and interest rate risk profile of financial liabilities
Total financial liabilities include total borrowings of GBP10,042,319k
(2014: GBP11,934,225k).
Fixed rate
-----------------------------------------
Weighted Average years
average for which
interest rate
At 31 December 2015 rate is fixed Total
Currency % GBP'000
------------------------- ------------ ----------- ---------------------------- ----------------
US dollars 2.0 2 (2,708,365)
Sterling 5.0 22 (4,047,820)
Euro 3.0 5 (3,286,134)
---------------------------------------------------- ----------- ---------------------------- ----------------
Total borrowings 3.4 10 (10,042,319)
Fixed rate
-----------------------------------------
Weighted Average years
average for which
interest rate
At 31 December 2014 rate is fixed Total
Currency % GBP'000
------------------------- ------------ ----------- ---------------------------- ----------------
US dollars 2.0 4 (3,189,407)
Sterling 5.0 23 (4,045,227)
Euro 3.0 5 (4,699,591)
---------------------------------------------------- ----------- ---------------------------- ----------------
Total borrowings 3.4 11 (11,934,225)
------------------------- ------------------------ ----------- ---------------------------- ----------------
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GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
Currency and interest rate risk profile of financial assets
Total financial assets excluding cash and other debtors amount to GBP10,058,660k
(2014: GBP11,940,181k).
At 31 December 2015 Fixed rate Fixed rate Total
Currency GBP'000 GBP'000 GBP'000
------------------------- ------------ ----------- ---------------------------- ----------------
US dollars 2,696,069 29,138 2,725,207
Sterling 4,024,023 45,208 4,069,231
Euro 3,264,222 - 3,264,222
---------------------------------------------------- ----------- ---------------------------- ----------------
Total current asset financial instruments 9,984,314 74,346 10,058,660
---------------------------------------------------- ----------- ---------------------------- ----------------
At 31 December 2014 Fixed rate Fixed rate Total
Currency GBP'000 GBP'000 GBP'000
------------------------- ------------ ----------- ---------------------------- ----------------
US dollars 3,178,341 19,423 3,197,764
Sterling 4,040,106 - 4,040,106
Euro 4,670,398 31,913 4,702,311
---------------------------------------------------- ----------- ---------------------------- ----------------
Total current asset financial instruments 11,888,845 51,336 11,940,181
Currency exposure of net monetary (liabilities)/assets
2015 2014
GBP'000 GBP'000
---------------- ------- --------- --------------- ---------------------------- ----------------
US dollars 16,842 8,357
Euro (21,912) 2,720
----------------------------------------------------------------- ---------------------------- ----------------
Net monetary (liabilities)/assets held in foreign
currency (5,070) 11,077
(b) Credit risk
Credit risk is managed on a Group basis and arises from cash and cash
equivalents, derivative financial instruments and deposits with banks
and financial institutions. The Group sets global counterparty limits
for each of GSK's banking and investment counterparties based on long-term
credit ratings from Moody's and Standard and Poor's. Usage of these
limits is monitored daily and the Corporate Treasury actively manages
its exposure to credit risk, reducing surplus cash balances wherever
possible.
There are no financial assets that are past due or impaired as at 31
December 2015 (2014: GBPnil).
The Company did not hold any collateral as security or obtained other
credit enhancements as at 31 December 2015 (2014: GBPnil).
The Company considers its maximum exposure to credit risk at 31 December
2015, without taking into account any collateral held or other credit
enhancements, to be GBP10,164,042k (2014: GBP12,072,223k) which is
the total amount owed by Group undertakings as disclosed in Note 11.
(c) Liquidity risk
Liquidity is managed centrally by borrowing in order to meet anticipated
funding requirements and investing centrally managed liquid assets
in bank deposits and "Aaa/AAA" rated US Treasury and Treasury repo
only money market funds and liquidity funds. Group cash flow forecast
and funding requirements are monitored on a monthly basis by the TMG
and the strategy is to have diversified liquidity sources using a range
of facilities and to maintain broad access to funding markets.
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
5 Capital management
The capital structure of the Group is managed through an appropriate
mix of debt and equity in order to optimise returns to shareholders
whilst maintaining the Group's credit ratings that provide the Company
with flexibility to access debt capital markets on attractive terms
under the Group's European and US Medium Term Note programme.
The capital structure of the Company consists of total shareholders'
funds of GBP19,691k (2014: GBP10,424k) (see Statement of changes in
equity), of which GBP16,343k (2014: GBP5,959k) relates to a net surplus
(see Note 16).
6 Other operating income
2015 2014
GBP'000 GBP'000
----------------------------------------------------- ---------------------------- ----------------
Exchange gains on foreign currency transactions 593 736
Management fee (46) (53)
------------------------- --------------------- --------------- ---------------------------- ----------------
GlaxoSmithKline Services Unlimited provides various services and facilities
to the Company including finance and administrative services for which
a management fee was charged of GBP45,879 in 2015 compared with GBP53,423
in 2014. Included in the management fee is a charge for auditor remuneration
of GBP34,898 (2014: GBP33,881) and non-audit fees of GBP5,689 (2014:
GBP5,689).
7 Employees
All employees are remunerated by GlaxoSmithKline Services Unlimited
and receive no remuneration from the Company. A management fee is charged
by GlaxoSmithKline Services Unlimited for services provided to the
Company (see Note 6).
8 Finance income
2015 2014
GBP'000 GBP'000
---------------- ------- --------- --------------- ---------------------------- ----------------
On loans with Group undertakings 394,271 408,331
----------------------------------------------------------------- ---------------------------- ----------------
Total finance income 394,271 408,331
9 Finance expense
2015 2014
GBP'000 GBP'000
---------------- ------- --------- --------------- ---------------------------- ----------------
Interest expense arising on financial liabilities
at amortised cost (382,895) (399,818)
Reclassification of cash flow hedge from other
comprehensive income (954) (626)
----------------------------------------------------------------- ---------------------------- ----------------
Total finance expense (383,849) (400,444)
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
10 Taxation
2015 2014
Income tax expense on ordinary activities GBP'000 GBP'000
----------------------------------------------------- ---------------------------- ----------------
Current tax:
UK Corporation tax at 20.25% (2014: 21.50%) 2,133 1,750
================================================================= ============================ ================
Total current tax 2,133 1,750
Deferred tax:
Origination and reversal of timing
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differences 78 86
Change in tax rate - impact on
deferred tax 9 -
------------------------------------ --------------- ---------------------------- ----------------
Total deferred tax 87 86
------------------------------------------------ --------------- ---------------------------- ----------------
Income tax expense on ordinary activities 2,220 1,836
The tax assessed for the year is lower (2014: lower) than the standard
rate of corporation tax in the UK for the year ended 31 December 2015
of 20.25% (2014: 21.50%). The differences are explained below:
2015 2014
Tax expense included in other comprehensive income GBP'000 GBP'000
----------------------------------------------------- ---------------------------- ----------------
Deferred tax:
on movements from the cash flow hedges 172 2,609
change in tax rates 261 -
----------------------------------------------------- ---------------------------- ----------------
Total tax expense included in other comprehensive
income 433 2,609
----------------------------------------------------------------- ---------------------------- ----------------
2015 2014
Reconciliation of total tax charge GBP'000 GBP'000
----------------------------------------------------- ---------------------------- ----------------
Profit on ordinary activities before taxation 10,969 8,570
Profit on ordinary activities at the UK statutory
rate 20.25% (2014: 21.50%) 2,221 1,842
Effects of:
Permanent disallowables - interest treated as
paid by ultimate parent 77,569 86,011
Permanent deductions - Group relief received
for no payment (77,569) (86,011)
Other timing differences - (6)
Effects of changes in tax rates (1) -
----------------------------------------------------- ---------------------------- ----------------
Total tax charge for the year 2,220 1,836
Factors that may affect future tax charges:
A reduction in the UK corporation tax rate from 21% to 20% (effective
1 April 2015) was enacted in 2013. Further reductions to 19% (effective
1 April 2017) and to 18% (effective 1 April 2020) were substantively
enacted as part of the Finance (No 2) Act 2015 on 26 October 2015.
This will impact the Company's future current tax charge accordingly.
Deferred taxes have been calculated based on the rate of 18% (2014:
20%) substantively enacted at the balance sheet date.
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
Movement in deferred tax assets and liabilities
Other net
temporary
differences Total
GBP'000 GBP'000
----------------------------------------------------- ---------------------------- ----------------
At 1 January 2015 2,696 2,696
Charge to income statement (87) (87)
Charge to comprehensive income (433) (433)
----------------------------------------------------------------- ---------------------------- ----------------
At 31 December 2015 2,176 2,176
After offsetting deferred tax assets and liabilities where appropriate,
the net deferred tax assets comprises:
2015 2014
GBP'000 GBP'000
----------------------------------------------------- ---------------------------- ----------------
Deferred tax assets 2,176 2,696
Deferred tax liabilities - -
----------------------------------------------------- ---------------------------- ----------------
2,176 2,696
11 Other receivables
2015 2014
GBP'000 GBP'000
----------------------------------------------------- ---------------------------- ----------------
Amounts due within one year
Amounts owed by Group undertakings - loans 74,346 1,934,347
Amounts owed by Group undertakings - current
accounts 105,382 132,042
----------------------------------------------------------------- ---------------------------- ----------------
179,728 2,066,389
Amounts due after more than one year
Amounts owed by Group undertakings - loans 9,984,314 10,005,834
Deferred tax (Note 10) 2,176 2,696
----------------------------------------------------------------- ---------------------------- ----------------
9,986,490 10,008,530
----------------------------------------------------------------- ---------------------------- ----------------
10,166,218 12,074,919
----------------------------------------------------------------- ---------------------------- ----------------
Amounts owed by Group undertakings include the net proceeds of bond
issuances that have been advanced as loans totalling GBP9,984,314k
(2014: GBP11,872,675k), which are unsecured with interest charged at
between 1.05% and 6.50% per annum and repayable at maturity dates between
2017 and 2045. In addition, there are deposits with Group undertakings
totalling GBP74,346k (2014: GBP67,507k), which are unsecured, interest
bearing and repayable on demand.
12 Creditors 2015 2014
GBP'000 GBP'000
----------------------------------------------------- ---------------------------- ----------------
Amounts falling due within one year
Amounts owed to Group undertakings (67) (1,764)
Corporation tax (2,133) (1,750)
Loans payables:
Euro Medium Term Notes - (1,239,371)
US Medium Term Notes - (640,661)
Accruals and deferred income (102,007) (126,759)
----------------------------------------------------------------- ---------------------------- ----------------
(104,207) (2,010,305)
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2016 11:09 ET (15:09 GMT)
----------------------------------------------------------------- ---------------------------- ----------------
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
2015 2014
GBP'000 GBP'000
----------------------------------------------------- ---------------------------- ----------------
Amounts falling due after more than one year
Loans payables:
Euro Medium Term Notes (7,333,954) (7,505,448)
US Medium Term Notes (2,708,365) (2,548,745)
----------------------------------------------------------------- ---------------------------- ----------------
(10,042,319) (10,054,193)
----------------------------------------------------------------- ---------------------------- ----------------
(10,146,526) (12,064,498)
----------------------------------------------------------------- ---------------------------- ----------------
Amounts owed to Group undertakings are unsecured and repayable on demand.
The corporation tax creditor contains amounts which will be paid to
fellow Group companies.
Debt is unsecured and there are no debt covenants in relation thereto.
Accruals and deferred income relates to accrued interest payable on
US Medium Term Notes and Euro Medium Term Notes.
2015 2014
Maturity of financial liabilities GBP'000 GBP'000
----------------------------------------------------- ---------------------------- ----------------
In more than one year, but not more than two years
1.5% US$ US Medium Term Note 2017 (1,357,900) -
5.625% EUR Euro Medium Term Note 2017 (917,715) -
----------------------------------------------------- ---------------------------- ----------------
(2,275,615) -
In more than two years, but not more than five years
1.5% US$ US Medium Term Note 2017 - (1,277,690)
5.625% EUR Euro Medium Term Note 2017 - (966,743)
0.6250% EUR Euro Medium Term Note 2019 (1,096,470) (1,154,227)
----------------------------------------------------------------- ---------------------------- ----------------
(1,096,470) (3,398,660)
In more than five years
2.85% US$ US Medium Term Note 2022 (1,350,466) (1,271,056)
1.3750% EUR Euro Medium Term Note 2024 (725,827) (764,093)
4.0% EUR Euro Medium Term Note 2025 (546,122) (575,157)
3.375% GBP Euro Medium Term Note 2027 (592,069) (591,403)
5.25% GBP Euro Medium Term Note 2033 (984,776) (983,927)
6.375% GBP Euro Medium Term Note 2039 (694,889) (694,668)
5.25% GBP Euro Medium Term Note 2042 (987,662) (987,193)
4.25% GBP Euro Medium Term Note 2045 (788,423) (788,036)
----------------------------------------------------------------- ---------------------------- ----------------
(6,670,234) (6,655,533)
(10,042,319) (10,054,193)
----------------------------------------------------------------- ---------------------------- ----------------
The loans due after 5 years are repayable at
their stated maturity.
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
13 Fair value of financial assets and liabilities
The fair values of the financial assets and liabilities are included
at the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at
the measurement date.
The following methods and assumptions were used to estimate the fair
values:
-- Cash at bank - approximates to the carrying amount;
Short-term loans and overdrafts - approximates to the carrying
-- amount because of the short maturity of these instruments;
Medium-term loans - market value based on quoted market prices
in the case of US and Euro Medium Term Notes, intercompany receivables
and other fixed rate borrowings, approximates to the carrying value
-- in the case of floating rate bank loans and other loans; and
-- Debtors and creditors - approximates to the carrying value
The carrying amounts and the fair values of the Company's financial
assets and liabilities at 31 December 2015 and 31 December 2014 are
illustrated below.
2015 2014
Carrying Carrying
value Fair value value Fair value
GBP'000 GBP'000 GBP'000 GBP'000
---------------- ------- ----- ------------------- ------------- ------------- ----------------
Cash and cash
equivalents 2 2 3 3
Loans and receivables:
Other receivables 10,058,660 11,180,812 11,940,181 13,386,521
-------------------------------- ------------------- ------------- ------------- ----------------
Total financial assets 10,058,662 11,180,814 11,940,184 13,386,524
-------------------------------- ------------------- ------------- ------------- ----------------
Financial liabilities measured
at amortised cost:
GBP Euro Medium Term
Notes (4,047,820) (4,895,199) (4,045,227) (5,098,993)
EUR Euro Medium Term
Notes (3,286,134) (3,549,695) (4,699,591) (5,088,214)
US$ US Medium Term
Notes (2,708,365) (2,735,918) (3,189,407) (3,199,314)
------------------------- ----- ------------------- ------------- ------------- ----------------
Total financial
liabilities (10,042,319) (11,180,812) (11,934,225) (13,386,521)
------------------------- ----- ------------------- ------------- ------------- ----------------
Total net surplus 16,343 2 5,959 3
------------------------- ----- ------------------- ------------- ------------- ----------------
Other debtors 105,382 105,382 132,042 132,042
Other creditors (104,207) (104,207) (130,273) (130,273)
Net financial assets and
liabilities 17,518 1,177 7,728 1,772
-------------------------------- ------------------- ------------- ------------- ----------------
Comprising:
Total financial assets 10,164,044 11,286,196 12,072,226 13,518,566
------------------------- ----- ------------------- ------------- ------------- ----------------
Total financial
liabilities (10,146,526) (11,285,019) (12,064,498) (13,516,794)
------------------------- ----- ------------------- ------------- ------------- ----------------
Total financial liabilities agree to the total of creditors due within
and after one year on the face of the Balance sheet.
Other debtors and creditors relate to amounts with Group companies
and amounts relating to tax.
(MORE TO FOLLOW) Dow Jones Newswires
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The Company has no financial assets or liabilities measured at fair
value through profit and loss.
The total financial liabilities of GBP11,180,812k (2014: GBP13,386,521k)
for which the fair value is disclosed in the table above are categorised
as Level 1, where quoted prices in active markets are used. All other
assets and liabilities for which fair value is disclosed in the table
above are categorised as Level 3, where one or more of the significant
inputs to the valuation model is not based on observable market data.
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
14 Contractual cash flows for non-derivative financial liabilities
The following table provides an analysis of the anticipated contractual
cash flows including interest payable for the Company's non-derivative
financial liabilities on an undiscounted basis.
2015 2014
Interest Interest
Debt on debt Debt on debt
GBP'000 GBP'000 GBP'000 GBP'000
---------------- ------- ----- ------------------- ------------- ------------- ----------------
Due in less than one year - (353,823) (1,881,336) (405,798)
Between one and two years (2,279,662) (343,616) - (355,334)
Between two and three years - (281,713) (2,251,044) (345,715)
Between three and four years (1,102,941) (281,713) - (281,596)
Between four and five years - (274,821) (1,162,791) (281,596)
Between five and ten years (2,647,309) (1,228,272) (2,057,245) (1,280,296)
Greater than 10 years (4,100,000) (2,657,750) (4,681,395) (2,884,879)
-------------------------------- ------------------- ------------- ------------- ----------------
Gross contractual cash flows (10,129,912) (5,421,708) (12,033,811) (5,835,214)
-------------------------------- ------------------- ------------- ------------- ----------------
Reconciliation of operating profit to net cash inflow/(outflow) from
15 operating activities
2015 2014
GBP'000 GBP'000
-------------------------------- ------------------- ------------- ------------- ----------------
Operating profit 547 683
Exchange movements (593) (487)
Movements in working capital:
(Increase)/decrease in debtors (190) 690
(Decrease) in creditors (3,446) -
Interest paid (396,238) (390,221)
Interest received 421,122 408,832
Loans provided to Group
undertakings - (1,963,410)
Loans repayments received from Group undertaking 1,767,246 -
----------------------------------------------------- ------------- ------------- ----------------
Net cash (outflow)/inflow from operating activities 1,788,448 (1,943,913)
-------------------------------------------------------------------------------- ------------- ----------------
Analysis of changes
in
16 net debt
At 1 Jan Cash Amorti- Exchange At 31 Dec
As at 31 December 2015 flows sation movements 2015
2015 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
==================== ============= ============ ================= ================= ================
Cash at bank and in
hand 3 (1) - - 2
Amounts owed by
group
companies 11,940,181 (1,759,613) - (121,908) 10,058,660
-------------------- ------------- ------------ ----------------- ----------------- ----------------
Current asset
financial
instruments 11,940,184 (1,759,614) - (121,908) 10,058,662
-------------------- ------------- ------------ ----------------- ----------------- ----------------
Sterling notes and
bonds (4,045,227) (1) (2,592) - (4,047,820)
Euro notes and
bonds (4,699,591) 1,132,581 (4,870) 285,746 (3,286,134)
US Dollar notes and
bonds (3,189,407) 648,235 (3,948) (163,245) (2,708,365)
-------------------- ------------- ------------ ----------------- ----------------- ----------------
Total borrowings (11,934,225) 1,780,815 (11,410) 122,501 (10,042,319)
-------------------- ------------- ------------ ----------------- ----------------- ----------------
Total net debt
(Note 13) 5,959 21,201 (11,410) 593 16,343
-------------------- ------------- ------------ ----------------- ----------------- ----------------
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
At 1 Jan Cash Amorti- Exchange At 31 Dec
As at 31 December 2014 flows sation movements 2014
2014 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- ------------- ------------ ----------------- ----------------- ----------------
Cash at bank and in
hand 4 (1) - - 3
Amounts owed by
group
companies 10,021,376 1,980,132 - (61,327) 11,940,181
-------------------- ------------- ------------ ----------------- ----------------- ----------------
Current asset
financial
instruments 10,021,380 1,980,131 - (61,327) 11,940,184
-------------------- ------------- ------------ ----------------- ----------------- ----------------
Sterling notes and
bonds (4,042,635) - (2,592) - (4,045,227)
Euro notes and
bonds (2,986,376) (1,963,410) (3,484) 253,679 (4,699,591)
US Dollar notes and
bonds (2,993,069) - (4,473) (191,865) (3,189,407)
-------------------- ------------- ------------ ----------------- ----------------- ----------------
Total borrowings (10,022,080) (1,963,410) (10,549) 61,814 (11,934,225)
-------------------- ------------- ------------ ----------------- ----------------- ----------------
Total net debt
(Note 13) (700) 16,721 (10,549) 487 5,959
-------------------- ------------- ------------ ----------------- ----------------- ----------------
Called up share
17 capital
2015 2014 2015 2014
Number
Number of of
shares shares GBP'000 GBP'000
-------------------- ------------- ------------------------------- ----------------- ----------------
Authorised
Ordinary shares of
GBP1
each
(2014: GBP1 each) 100,000 100,000 100 100
-------------------- ------------- ------------------------------- ----------------- ----------------
Issued and fully
paid
Ordinary shares of
GBP1
each
(2014: GBP1 each) 100,000 100,000 100 100
(MORE TO FOLLOW) Dow Jones Newswires
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-------------------- ------------- ------------------------------- ----------------- ----------------
18 Other reserves
Cash flow Retained Total
hedge reserve earnings reserves
GBP'000 GBP'000 GBP'000
------------------- ------------- ------------------------------- ----------------- ----------------
At 1 January 2015 (10,435) 20,759 10,324
Transferred from income and expense
in the year - 8,749 8,749
Cash flow hedge reserve recycled to
profit and loss account 954 - 954
Deferred tax effect of cash flow hedges (433) - (433)
------------------------------------------- ------------------------------- ----------------- ----------------
At 31 December 2015 (9,914) 29,508 19,594
-------------------- ------------- ------------------------------- ----------------- ----------------
The cash flow hedge reserve relates to the cumulative fair value changes
of derivatives representing pre-hedging of debt-issuances. The reserve
is amortised over the life of the subsequently issued bonds.
19 Contingent liabilities/assets
Group banking arrangement
The Company, together with fellow Group undertakings has entered into
a Group banking arrangement with the Company's principal bank. The
bank holds the right to pay and apply funds from any account of the
Company to settle any indebtedness to the bank of any other party to
this agreement. The Company's maximum potential liability as at 31
December 2015 is limited to the amount held on its accounts with the
bank. No loss is expected to accrue to the Company from the agreement.
GlaxoSmithKline Capital plc
Notes to the financial statements for the year ended 31 December 2015
20 Directors' remuneration
During the year the Directors of the Company, with the exception of
the Corporate Directors, were remunerated as executives of the Group
and received no remuneration in respect of their services to the Company
(2014: GBPnil). Corporate Directors received no remuneration during
the year, either as executives of the Group or in respect of their
services to the Company (2014: GBPnil).
21 Related party transactions
As a wholly owned subsidiary of the ultimate parent company, GlaxoSmithKline
plc, advantage has been taken of the exemption afforded by FRS 101
"Reduced Disclosure Framework" not to disclose any related party transactions
within the Group. There are no other related party transactions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AKADKPBKDQQB
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