Air New Zealand 2012 Annual Report Download - page 32

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AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2012
30
17. FINANCIAL RISK MANAGEMENT (CONTINUED)
COMPANY
AS AT 30 JUNE 2012
In NZ$M NZD USD AUD EUR JPY GBP OTHER TOTAL
Foreign currency risk
Non-derivative financial instruments
Non interest-bearing assets - - 13 - - - - 13
Interest-bearing assets 140 - 40 - - - - 180
Amounts owing from subsidiaries* 664 (294) 9 - 1 - - 380
Interest-bearing liabilities (539) (389) - - (194) - - (1,122)
Net financial position exposure before hedging activities 265 (683) 62 - (193) - - (549)
Foreign currency derivatives
Notional principal (NZ$M)
Cash flow hedges (503) 1,131 (277) (58) (65) (119) (95) 14
Non-hedge accounted (678) 727 (56) 3 - 6 3 5
(916) 1,175 (271) (55) (258) (113) (92) (530)
Cash flows in respect of foreign currency cash flow
hedges are expected to occur as follows:
Not later than 1 year (459) 1,058 (265) (55) (63) (113) (90) 13
Later than 1 year and not later than 2 years (44) 73 (12) (3) (2) (6) (5) 1
(503) 1,131 (277) (58) (65) (119) (95) 14
* Foreign currency derivatives executed through the Parent company are used to provide an offset at an Air New Zealand Group level
of translation gains or losses on United States dollar denominated interest-bearing liabilities (primarily held by a wholly owned
subsidiary). Foreign currency exposure is managed at a legal entity level within the Group through related party foreign currency
deposits and loans. A United States dollar denominated payable to a subsidiary forms part of a set-off arrangement with a New Zealand
dollar denominated intercompany receivable from that subsidiary. Other foreign currency balances with related parties are immaterial to
foreign currency fluctuations.
COMPANY
AS AT 30 JUNE 2011
In NZ$M NZD USD AUD EUR JPY GBP OTHER TOTAL
Foreign currency risk
Non-derivative financial instruments
Interest-bearing assets 130 - 40 - - - - 170
Amounts owing from subsidiaries* 712 (350) 29 - 1 - - 392
Interest-bearing liabilities (429) (179) - - - - - (608)
Net financial position exposure before hedging activities 413 (529) 69 - 1 - - (46)
Foreign currency derivatives
Notional principal (NZ$M)
Cash flow hedges (770) 1,561 (393) (86) (133) (181) (128) (130)
Non-hedge accounted (567) 560 (35) 1 - 2 2 (37)
(924) 1,592 (359) (85) (132) (179) (126) (213)
Cash flows in respect of foreign currency cash flow
hedges were expected to occur as follows:
Not later than 1 year (684) 1,383 (339) (77) (128) (164) (114) (123)
Later than 1 year and not later than 2 years (86) 178 (54) (9) (5) (17) (14) (7)
(770) 1,561 (393) (86) (133) (181) (128) (130)
* Foreign currency derivatives executed through the Parent company are used to provide an offset at an Air New Zealand Group level
of translation gains or losses on United States dollar denominated interest-bearing liabilities (primarily held by a wholly owned
subsidiary). Foreign currency exposure is managed at a legal entity level within the Group through related party foreign currency
deposits and loans. A United States dollar denominated payable to a subsidiary forms part of a set-off arrangement with a New Zealand
dollar denominated intercompany receivable from that subsidiary. Other foreign currency balances with related parties are immaterial to
foreign currency fluctuations.
Notes to the Financial Statements (Continued)
As at 30 June 2012