Air New Zealand 2008 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2008 Air New Zealand annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 76

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76

15. PROVISIONS
GROUP
2008
$M
GROUP
2007
$M
COMPANY
2008
$M
COMPANY
2007
$M
Provisions
Aircraft lease return costs 143 136 142 136
Restructuring - 10 - 10
143 146 142 146
Represented by:
Current 27 55 27 55
Non-current 116 91 115 91
143 146 142 146
Aircraft lease return costs
Balance at the beginning of the year 136 136 136 136
Amount raised 43 36 42 36
Amount utilised (35) (8) (35) (8)
Foreign exchange differences (1) (28) (1) (28)
Balance at the end of the year 143 136 142 136
Represented by:
Current 27 45 27 45
Non-current 116 91 115 91
143 136 142 136
Where a commitment exists to maintain aircraft held under operating lease arrangements, a provision is made during the lease term for the lease
return obligations speciļ¬ed within those lease agreements. The provision is based on the present value of the estimated future costs of major airframe
inspections and engine overhauls by making appropriate charges to the Statement of Financial Performance, calculated by reference to the number of
hours or cycles operated during the year. The provision is expected to be utilised over the shorter of the period to the next inspection or overhaul or the
end of the lease.
GROUP
2008
$M
GROUP
2007
$M
COMPANY
2008
$M
COMPANY
2007
$M
Restructuring
Balance at the beginning of the year 10 17 10 17
Amount raised 1 10 1 10
Amount utilised (11) (17) (11) (17)
Balance at the end of the year - 10 - 10
Represented by:
Current - 10 - 10
Non-current - - - -
- 10 - 10
A restructuring provision is created where a detailed formal plan is developed and a valid expectation exists. Costs relating to ongoing activities are not
provided for. The restructuring provision included amounts related to business reorganisation. As at 30 June 2008, all amounts had been utilised.
AIR NEW ZEALAND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2008
24