OTHER FINANCIAL INFORMATION
Items excluded from management trading profit
In order to achieve consistency and comparability between reporting periods the following items are excluded from management measures as they do not reflect trading activity: (2014: £13 million). Trading profit decreased £5 million, reflecting more challenging market conditions for our equity accounted investment companies, primarily in China.
The change in value of derivative and other financial instruments during the year resulted in a loss of £122 million (2014: £209 million loss). When the business wins long-term customer contracts that are in a foreign currency, the Group offsets the potential volatility of the future cash flows by hedging through forward foreign currency exchange contracts. At each period end, the Group is required to mark to market these contracts even though it has no intention of closing them out in advance of their maturity dates. At 31 December 2015, the net fair value of such instruments was a liability of £351 million (2014: £180 million) and the change in fair value during the year was a £103 million charge (2014: £232 million charge). During the year £68 million of liabilities in the form of forward currency contracts were taken on via the acquisition of Fokker. There was also a £1 million credit arising from the change in fair value of embedded derivatives in the year (2014: £4 million credit) and a net loss of £20 million attributable to the currency impact on Group funding balances (2014: £19 million net gain).
Change in value of derivative and other financial instruments
Net financing costs
Net financing costs totalled £137 million (2014: £129 million) and comprise the net interest payable of £65 million (2014: £73 million), the non-cash charge on post-employment benefits of £49 million (2014: £50 million), charges from fair value changes on cross currency interest rate swaps of £17 million (2014: £3 million credit) and charge for unwind of discounts of £6 million (2014: £9 million). The non-cash charge on post-employment benefits, fair value changes on cross currency interest rate swaps and unwind of discounts are not included in management figures. Details of the assumptions used in calculating post-employment costs are provided in note 24. Interest payable was £72 million (2014: £75 million), while interest receivable was £7 million (2014: £2 million) including £4 million of interest from recoveries on a tax case resulting in net interest payable of £65 million (2014: £73 million). Interest charged on government refundable advances was £3 million (2014: £7 million).
Profit before tax
Amortisation of non-operating intangible assets arising on business combinations
The charge for amortisation of non-operating intangible assets arising on business combinations (for example, customer contracts, order backlog, technology and intellectual property rights) was £80 million (2014: £69 million).
Management profit before tax was £603 million (2014: £601 million). Profit before tax on a statutory basis was £245 million (2014: £221 million). The main differences between management and statutory figures for 2015 are the change in value of derivative and other financial instruments, amortisation of non-operating intangible assets arising on business combinations, gains and losses on changes in Group structure and the fair value charges on cross currency interest rate swaps. Further details are provided in note 3 to the financial statements.
Gains and losses on changes in Group structure