Air New Zealand 2010 Annual Report Download - page 21

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8. INVENTORIES
GROUP
2010
$M
GROUP
2009
$M
COMPANY
2010
$M
COMPANY
2009
$M
Engineering expendables 145 122 115 89
Consumable stores 17 21 17 21
162 143 132 110
Held at cost 144 119 114 88
Held at fair value less costs to sell 18 24 18 22
162 143 132 110
Movement in the provision for inventory obsolescence
Balance at the beginning of the year (24) (20) (22) (17)
Increase in provision (4) (7) (3) (7)
Decrease in provision 4 1 4 -
Amounts utilised 1 2 1 2
Balance at the end of the year (23) (24) (20) (22)
9. ASSETS HELD FOR RESALE
GROUP
2010
$M
GROUP
2009
$M
COMPANY
2010
$M
COMPANY
2009
$M
Current
Property, plant and equipment 8 3 2 -
8 3 2 -
Non-current
Property, plant and equipment 4 7 - -
4 7 - -
In anticipation of the exit of the Boeing 747-400 fleet, two engines and spares are being marketed for sale. During the 2009 financial year, the Group
reduced capacity on certain long haul routes, resulting in one Boeing 747-400 aircraft being componentised which is being disposed as parts. It is
expected that proceeds for parts will be received over a two year period. The carrying value of the assets as at 30 June 2010 reflects the lower of their
previous carrying value at the date of transfer or external market assessments of the fair value, less costs to sell.
10. OTHER ASSETS
GROUP
2010
$M
GROUP
2009
$M
COMPANY
2010
$M
COMPANY
2009
$M
Current
Contract work in progress 45 40 28 22
Amounts owing from subsidiaries - - 169 149
Amounts owing from associates 3 1 3 1
Other assets (including defined benefit assets) 3 3 3 3
51 44 203 175
Non-current
Capital work in progress 64 39 52 37
Progress payments on aircraft, engines and simulators 308 110 308 104
Other interest-bearing assets 137 130 137 130
Other assets 14 12 8 7
523 291 505 278
Other non-current interest-bearing assets include registered transferable certificates of deposit (RTDs) that provide security over credit card obligations
accepted on behalf of Air New Zealand. The RTD’s bear floating rate interest, and mature after seven years.
AIR NEW ZEALAND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2010
19