191 Notes to the consolidated financial statements continued 14 Investments in

191 notes to the consolidated financial statements

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191
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Notes to the consolidated financial statements (continued) 14. Investments in associates (continued) (b) Other associates For all of the group’s investments in associates other than Mo¨ et Hennessy, summarised financial information, aggregating 100% of the assets and liabilities of each associate, including acquisition fair value adjustments, is presented below: 2010 2009 £ million £ million Non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 637 539 Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432 412 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,069 951 Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (349) (318) Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (122) (74) Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (471) (392) Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 598 559 Included in other associates is a 19% (2009 – 19%) effective interest held indirectly in Sichuan ShuiJingFang Co., Ltd. (ShuiJing Fang), a manufacturer and distributor of Chinese white spirits, which is listed on the Shanghai Stock Exchange. At 30 June 2010, the carrying value of the group’s interest in ShuiJingFang was £96 million (2009 – £78 million), while the quoted value, based on a share price of RMB18.41 (2009 – RMB16.54) was £172 million (2009 – £140 million). As at 16 August 2010, the share price of ShuiJingFang was RMB21.82 per share. Information on potential increase in the group’s effective interest in ShuiJingFang is given in note 31. 15. Investments in joint ventures The group consolidates its attributable share of the results and net assets of joint ventures on a line-by-line basis, measured according to the terms of the arrangements. The group’s principal joint ventures that are consolidated on a proportional basis are as follows: Country of Country of Percentage of incorporation operation equity owned Principal activities Don Julio BV . . . . . . . . . . . . Netherlands Mexico 50% Production, marketing and distribution of premium drinks Guinness Anchor Berhad . . . Malaysia Malaysia 50% Production, marketing and distribution of premium drinks Mo¨ et Hennessy Diageo (China) Co Ltd . . . . . . . . . China China 50% Marketing and distribution of premium drinks In addition, the group consolidates on a proportional basis a number of other joint ventures involved in the production, marketing and distribution of premium drinks in Europe, South Africa and the Far East. 192
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Notes to the consolidated financial statements (continued) 15. Investments in joint ventures (continued) Included in the consolidated financial statements are the following amounts that represent the group’s interest in the results and assets and liabilities of joint ventures: 2010 2009 2008 £ million £ million £ million Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 568 579 516 Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (495) (535) (474) Profit before tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 44 42 2010 2009 £ million £ million Non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 120 Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288 245 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420 365 Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (180) (186) Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (29) (26) Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (209) (212) Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 153 16. Other investments Escrow Loans and account other Total £ million £ million £ million Cost less provisions or fair value At 30 June 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 68 168 Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 24 76 Repayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) (7) Fair value adjustments and provisions . . . . . . . . . . . . . . . . . . . . . . . . . . (8) 2 (6) At 30 June 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 87 231 Exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 58 Repayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26) (26) Transfer to the UK Diageo Pension Scheme (note 4 (f)) . . . . . . . . . . . . (147) (147) Fair value adjustments and provisions . . . . . . . . . . . . . . . . . . . . . . . . . . 3 (7) (4) At 30 June 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 117 193
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