Air New Zealand 2008 Annual Report Download - page 29

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AIR NEW ZEALAND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2008
16. FINANCIAL INSTRUMENTS (CONTINUED)
COMPANY
AS AT 30 JUNE 2008
In NZ$M NZD USD AUD EUR JPY GBP OTHER TOTAL
Foreign currency risk
Non-derivative financial instruments
Cash and cash equivalents 1,256 2 2 2 1 1 14 1,278
Security deposit 130 - - - - - - 130
Trade and other receivables (excluding prepayments) 208 64 20 11 12 22 23 360
Amounts owing from subsidiaries 121 96 - - 4 - - 221
Amounts owing from associates 1 - - - - - - 1
Trade and other payables (136) (186) (53) (5) (6) (20) (13) (419)
Interest-bearing liabilities (274) - - - - - - (274)
Amounts owing to subsidiaries (1,117) - (11) - - - - (1,128)
Amounts owing to associates - - (1) - - - - (1)
Net financial position exposure before hedging activities 189 (24) (43) 8 11 3 24 168
Foreign currency derivatives
Notional principal (NZ$M)
Cash flow hedges (1,392) 2,603 (478) (160) (137) (363) (160) (87)
Non-hedge accounted (870) 891 25 2 (7) (4) 3 40
Balance** (2,073) 3,470 (496) (150) (133) (364) (133) 121
Cash flows in respect of foreign currency cash flow hedges
are expected to occur as follows:
Not later than 1 year (1,068) 2,219 (436) (152) (132) (351) (147) (67)
Later than 1 year and not later than 2 years (324) 384 (42) (8) (5) (12) (13) (20)
(1,392) 2,603 (478) (160) (137) (363) (160) (87)
** The Company does not hold any foreign currency interest-bearing liabilities. Foreign currency derivatives executed through the central Treasury
function within the Company are used to provide a natural offset at a Group level of translation gains or losses on United States Dollar denominated
interest-bearing liabilities (“foreign currency debt cover”). Within the Company, there is no such offset. The balance shown above, excluding the foreign
currency debt cover, represents hedges of highly probable forecast foreign currency operating and capital expenditure transactions.
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