Notes to the consolidated financial statements

Available for sale financial assets at 31 December 2008 include £30m (2007: £21m) of investments used to satisfy certain US retirement obligations, of which £28m (2007: £21m) comprises fixed rate listed investments, the fair values of which are determined directly by reference to published price quotations in an active market, and £2m (2007: £nil) comprises cash and cash equivalents. Also included in available for sale financial assets at 31 December 2008 are unlisted investments of £1m (2007: £1m).

The carrying amounts of available for sale financial assets are denominated in the following currencies, which are the functional currencies of the respective subsidiaries.

An analysis of provisions against inventories is set out below.

Provisions released in the year comprise £1m (2007: £1m) relating to sales of spare parts in Beverage Cans, £1m (2007: £1m) relating to various provisions in Plastic Packaging and £nil (2007: £2m) on the sale of glass containers to an independent customer at original cost and for the use of consumables that were fully provided in the discontinued Glass segment.

Collateral deposits relate to funds placed with derivative counterparties in respect of certain commodity contracts where the market value of the contract exceeded a predetermined threshold in favour of the derivative counterparties.

An analysis of provision for impairment of trade and other receivables is set out below.

An analysis of total trade and other receivables including those which are past due but not impaired is set out below.

The maximum amount of credit risk with respect to customers is represented by the carrying amount on the balance sheet. Customer credit facilities for new customers must be approved by designated managers at business level or by senior sector management. Credit limits are set with reference to trading history and reports from credit rating agencies. Customer credit facilities are reviewed at the sales order entry stage and at the time of shipment so as not to exceed customer limits. Overdue accounts are regularly reviewed and impairment provisions are created where necessary. As a matter of policy, all outstanding trade balances greater than three months are fully provided except as approved by senior sector management and with due regard to the historical risk profile of the customer. The Group has extremely low historical levels of customer credit defaults, due in part to the blue chip multinational nature of many of its customers and the long term relationships it has with them. There were no new customers in 2008 where the Group considered there was a risk of significant credit default. There are no trade and other receivables that would otherwise be past due or impaired whose terms have been renegotiated.

The carrying amounts of total trade and other receivables are denominated in the following currencies, which in most instances are the functional currencies of the respective subsidiaries.

The carrying amounts of cash and cash equivalents are denominated in the following currencies.

20 Assets and liabilities classified as held for sale

An analysis of the assets and liabilities classified as held for sale at 31 December is set out below.

The Petainer plastic bottle business is in the process of being sold. Offers have been received for the business consistent with its carrying value and advanced discussions are now being held with a preferred bidder. In accordance with IFRS5 ‘Non Current Assets Held for Sale and Discontinued Operations’, the related assets and liabilities of the business are separately classified in the consolidated balance sheet as held for sale. No depreciation or amortisation has been charged for the year. An impairment of £3m has been recognised in 2008 in order to align the carrying value with fair value less costs to sell. The impairment has been disclosed in the consolidated income statement within operating expenses.

Other assets classified as held for sale of £4m (2007: £nil) comprise a property deemed surplus to requirements resulting from the restructuring of the North American Beverage Can business.