Air New Zealand 2008 Annual Report Download - page 41

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AIR NEW ZEALAND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2008
21. EQUITY RESERVES
GROUP
2008
$M
GROUP
2007
$M
COMPANY
2008
$M
COMPANY
2007
$M
Cash flow hedge reserve
Balance at the beginning of the year (79) 132 (76) 118
Changes in fair value of cash flow hedges 68 (213) 68 (190)
Transfers to net profit ("Fuel") (107) (31) (107) (31)
Transfers to net profit ("Other expenses") 129 (56) 129 (56)
Transfers to asset carrying value 5 (15) - (13)
Taxation on reserve movements (32) 104 (30) 96
Balance at the end of the year (16) (79) (16) (76)
Foreign currency translation reserve
Balance at the beginning of the year (12) - - -
Translation gain/(loss) 2 (12) - -
Balance at the end of the year (10) (12) - -
Retained deficit
Balance at the beginning of the year (736) (795) (1,625) (1,410)
Net profit/(loss) for the year 218 221 184 (53)
Dividend on Ordinary Shares (106) (162) (106) (162)
Balance at the end of the year (624) (736) (1,547) (1,625)
Total equity reserves (650) (827) (1,563) (1,701)
Cash flow hedge reserve
The cash flow hedge reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to
hedged transactions that have not yet occurred.
Foreign currency translation reserve
The foreign currency translation reserve comprises foreign exchange differences arising on consolidation of foreign operations together with the
translation of foreign currency borrowings designated as a hedge of net investments in those foreign operations.
22. CAPITAL COMMITMENTS
GROUP
2008
$M
GROUP
2007
$M
COMPANY
2008
$M
COMPANY
2007
$M
Airframe and engines 2,289 2,322 2,258 2,250
Other property, plant and equipment 50 21 50 17
Intangible assets 1111
2,340 2,344 2,309 2,268
Commitments shown are for those asset purchases committed and contracted for.
The Group has entered into firm commitments to purchase eight Boeing 787-9 (B787-9) aircraft and associated engines and spares. The Company
also has options on a further eight aircraft. The Group has purchased the rights to acquire an additional eight B787-9 aircraft. The B787-9 aircraft that
are subject to firm commitments were originally scheduled for delivery between the period December 2010 to September 2013. The Group received
notification from Boeing on 10 April 2008 that these aircraft will be delayed with the first delivery likely to be in early 2012. The capital commitments in the
above table reflect the current contractual obligations however the Group is currently in negotiations with Boeing regarding revised B787-9 delivery dates.
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