Air New Zealand 2008 Annual Report Download - page 20

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8. INVENTORIES
GROUP
2008
$M
GROUP
2007
$M
COMPANY
2008
$M
COMPANY
2007
$M
Engineering expendables 96 93 82 80
Consumable stores 27 26 27 26
123 119 109 106
Held at cost 111 106 98 94
Held at fair value less costs to sell 12 13 11 12
123 119 109 106
Movement in the provision for inventory obsolescence
Balance at the beginning of the year (18) (32) (16) (31)
Increase in provision (3) (1) (2) -
Decrease in provision 1 1 1 1
Amounts utilised - 14 - 14
Balance at the end of the year (20) (18) (17) (16)
9. OTHER ASSETS
GROUP
2008
$M
GROUP
2007
$M
COMPANY
2008
$M
COMPANY
2007
$M
Current
Contract work in progress 34 27 21 15
Aircraft assets intended for resale - 2 - -
Amounts owing from subsidiaries - - 221 205
Amounts owing from associates 1 - 1 -
Other assets (including defined benefit assets) 3 4 3 4
38 33 246 224
Non-current
Capital work in progress 55 33 54 27
Progress payments on aircraft, engines and simulators 55 25 47 21
Security deposit* 130 120 130 120
Other assets 14 12 5 5
254 190 236 173
* Registered transferable certificates of deposit (RTDs) provide security over credit card obligations accepted on behalf of Air New Zealand. The RTDs
bear floating rate interest, and mature after seven years.
The Group entered into conditional sale and purchase agreements to dispose of seven SAAB-340 aircraft during the comparative period with two aircraft
being withdrawn from service as at 30 June 2007. All aircraft were sold by 3 March 2008. No impairment losses were recognised in relation to these
aircraft.
AIR NEW ZEALAND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2008
18