british american tobacco p.l.c. annual report 2008 - Notes on the accounts: 19 of 31

 
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ANNUAL REPORT 2009

19 Cash and cash equivalents

 2009
£m		2008
£m
Cash and bank balances965 1,050
Cash equivalents1,196 1,259
 2,161 2,309

Cash equivalents mainly comprise short-term deposits and investments in money market funds with an original maturity of three months or less. The carrying value of cash and cash equivalents approximates their fair value.

Cash and cash equivalents are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below:

 2009
£m		2008
£m
Functional currency1,604 1,824
US dollar211 173
UK sterling6 4
Euro262 253
Other currencies78 55
 2,161 2,309

The currency in which cash and cash equivalents are held, together with the effective interest rates applicable to cash and cash equivalents are as follows:

 Values Rates
 2009
£m		2008
£m		2009
%		2008
%
US dollar221 195 0.9 1.8
UK sterling437 219 0.4 2.4
Euro340 313 0.4 2.7
Canadian dollar43 106 0.4 1.4
Australian dollar53 49 3.3 4.2
Other currencies1,067 1,427 5.3 9.2
 2,161 2,309   

At 31 December 2009, cash and cash equivalents of £nil (2008: £19 million) were pledged as collateral principally in respect of excise creditors.

In the Group cash flow statement, net cash and cash equivalents are shown after deducting bank overdrafts and accrued interest, as follows:

 2009
£m		2008
£m
Cash and cash equivalents as above2,161 2,309
Less  
– accrued interest(1)(3)
– overdrafts(181)(86)
Net cash and cash equivalents1,979 2,220

Cash and cash equivalents include restricted amounts of £80 million (2008: £173 million), principally due to exchange control regulations in certain countries.