52Spire Healthcare Annual Review 2010Spire Healthcare Limited PartnershipNotes to the financial statementsFor the year ended 31 December 20101. Accounting policies continuedHedge accounting is discontinued when the Group revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. Any cumulative gain or loss deferred in equity at that time remains in other comprehensive income and is recognised when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was deferred in equity is recognised immediately in profit or loss.Significant judgements and estimatesIn preparing these financial statements, the General Partner has made the following significant estimates and judgements:. GoodwillAssumptions have been made when reviewing goodwill for impairment. The key assumptions are shown in note 9.. Fair value of swapsSpire Healthcare use the Sterling zero coupon curve as at the balance sheet date to discount financial instruments where the fair value cannot otherwise be found from quoted market values.2. Immediate and ultimate parent undertakingsThe immediate and ultimate parent undertakings of Spire Healthcare Limited Partnership are Fourth Cinven Fund (No.1) LP, Fourth Cinven Fund (No.2) LP, Fourth Cinven Fund (No.3 - VCOC) LP, Fourth Cinven Fund (No.4) LP, Fourth Cinven Fund (UBTI) LP, Fourth Cinven Fund Co-Investment Partnership and Fourth Cinven (MACIF) LP (together the 'Cinven Funds'), being funds managed and advised by Cinven Limited, a company incorporated under the laws of England and Wales.Accordingly, the General Partner considers that the Partnership's ultimate controlling party is Cinven Limited, the managers of and advisor to the Cinven Funds.3. Staff costsEmployeesThe average number of full-time equivalent persons employed by the Group during the year, analysed by category, were as follows:2010Number2009NumberClinical3,5123,402Non-clinical2,7512,8826,2636,284The aggregate payroll costs of these persons were as follows:2010£0002009£000Wages and salaries161,293157,062Social security costs14,72414,303Other pension costs9,2988,880185,315180,245Other pension costs are in respect of the defined contribution scheme; unpaid contributions at 31 December 2010 were £789,000 (2009: £1,117,000).

53Spire Healthcare Limited Partnership4. Exceptional items2010£0002009£000Integration and rebranding364903Reorganisation and set-up costs1,1143,626Corporate restructuring and financing costs(1,570)458(92)4,987Integration and re-branding costs relate to the integration of businesses acquired and their rebranding as Spire Healthcare.Reorganisation and set-up costs relate to the set-up costs of new hospitals and the cost of acquisition in the year. 2009 costs related to the rationalisation of the hospital distribution centres for hospital supplies.Corporate restructuring and financing costs in 2010 relate to accounting adjustments following changes to lease terms, after charging £1.4 million of costs in respect of corporate financing. 2009 costs related to the revision of the corporate legal structure and the raising of finance.5. Finance income2010£0002009£000Interest income on bank deposits93256. Finance costs2010£0002009£000Interest on loans from ultimate undertaking and management64,55858,140Interest on bank facilities108,306108,890Finance charges payable under finance leases6,2841,850Change in fair value of interest rate derivatives(4,983)(637)174,165168,243Finance costs capitalised in the year(80)(10)174,085168,233Finance costs capitalised during the year were calculated based on a weighted cost of borrowing of 8% (2009: 8%).