34 Other reserves and minority interests
a Group
| Group | |||||
|---|---|---|---|---|---|
| £ million | Retained earnings | Unrealised gains and losses | Currency translation | Total | Minority interests* |
| Balance at April 1, 2006 | 589 | 100 | 1 | 690 | 213 |
| Profit for the period attributable to shareholders | 290 | 290 | |||
| Exchange differences and other movements | (3) | (3) | |||
| Share-based payments | 10 | 10 | |||
| Tax effect of share-based payments | 18 | 18 | |||
| Fair value of cash flow hedges transferred to passenger revenue | (3) | (3) | |||
| Fair value of cash flow hedges transferred to fuel and oil costs | (61) | (61) | |||
| Fair value of cash flow hedges transferred to currency differences | 12 | 12 | |||
| Net change in fair value of cash flow hedges | 48 | 48 | |||
| Share of other movements in reserves of associates | 8 | 8 | |||
| Purchase of minority interests** | (13) | ||||
| Net gains on available-for-sale financial assets | 3 | 3 | |||
| Total income and expense for the period | 326 | (1) | (3) | 322 | (13) |
| Exercise of share options | (12) | (12) | |||
| Balance at March 31, 2007 | 903 | 99 | (2) | 1,000 | 200 |
| Profit for the period attributable to shareholders | 680 | 680 | |||
| Exchange differences and other movements | 24 | 24 | |||
| Share-based payments | 3 | 3 | |||
| Tax effect of share-based payments | (7) | (7) | |||
| Deferred tax – rate change adjustment | 6 | 6 | |||
| Fair value of cash flow hedges transferred to passenger revenue | (5) | (5) | |||
| Fair value of cash flow hedges transferred to fuel and oil costs | (136) | (136) | |||
| Fair value of cash flow hedges transferred to currency differences | 15 | 15 | |||
| Net change in fair value of cash flow hedges | 245 | 245 | |||
| Share of other movements in reserves of associates | (2) | (2) | |||
| Net losses on available-for-sale financial assets | (5) | (5) | |||
| Total income and expense for the period | 680 | 114 | 24 | 818 | |
| Balance at March 31, 2008 | 1,583 | 213 | 22 | 1,818 | 200 |
* Included within minority interests are €300 million of 6.75 per cent fixed coupon euro perpetual preferred securities issued by British Airways Finance (Jersey) L.P. in which the general partner is British Airways Holdings Limited, a wholly-owned subsidiary of the Company. The holders of these securities have no rights against Group undertakings other than the issuing entity and, to the extent prescribed by the subordinated guarantee, the Company. The effect of the securities on the Group as a whole, taking into account the subordinate guarantee and other surrounding arrangements, is that the obligations to transfer economic benefits in connection with the securities do not go beyond those that would normally attach to preference shares issued by a UK company.
** On November 15, 2006 the Group acquired the minority interest held by American Airlines in BA & AA Holdings, the subsidiary that held the Group’s interest in Iberia. The consideration paid was £13 million.
b Company
| Company | |||
|---|---|---|---|
| £ million | Retained earnings | Unrealised gains and losses | Total |
| Balance at April 1, 2006 | 557 | 96 | 653 |
| Profit for the period attributable to shareholders | 18 | 18 | |
| Share-based payments | 10 | 10 | |
| Tax effect of share-based payments | 18 | 18 | |
| Fair value of cash flow hedges transferred to passenger revenue | (3) | (3) | |
| Fair value of cash flow hedges transferred to fuel and oil costs | (61) | (61) | |
| Fair value of cash flow hedges transferred to currency differences | 12 | 12 | |
| Net change in fair value of cash flow hedges | 48 | 48 | |
| Total income and expense for the period | 46 | (4) | 42 |
| Exercise of share options | (12) | (12) | |
| Balance at March 31, 2007 | 591 | 92 | 683 |
| Profit for the period attributable to shareholders | 540 | 540 | |
| Share-based payments | 3 | 3 | |
| Tax effect of share-based payments | (7) | (7) | |
| Deferred tax – rate change adjustment | 6 | 6 | |
| Fair value of cash flow hedges transferred to passenger revenue | (5) | (5) | |
| Fair value of cash flow hedges transferred to fuel and oil costs | (136) | (136) | |
| Fair value of cash flow hedges transferred to currency differences | 15 | 15 | |
| Net change in fair value of cash flow hedges | 245 | 245 | |
| Deferred tax related to fair value movements | |||
| Total income and expense for the period | 542 | 119 | 661 |
| Balance at March 31, 2008 | 1,133 | 211 | 1,344 |
The unrealised gains and losses reserve records fair value changes on available-for-sale investments and the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge.
The currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries and associates.
Total shareholders’ equity also includes the balance classified as share capital that includes the total net proceeds (both nominal value and share premium) on issue of the Company’s equity share capital, comprising 25 pence ordinary shares. Investment in own shares consists of shares held by British Airways Employee Benefits Trust (Jersey) Limited, a wholly-owned subsidiary, for the purposes of the Employee Share Ownership plans including the Long Term Incentive Plan. At March 31, 2008 the Group and Company held 2,087,147 shares for the Long Term Incentive Plan and other employee share schemes (2007: 1,994,079 shares). The purchase of shares was financed by the Company granting a loan to British Airways Employee Benefits Trust (Jersey) Limited.