Air New Zealand 2013 Annual Report Download - page 32

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Air New Zealand Annual Financial Results 
30
. FINANCIAL RISK MANAGEMENT CONTINUED
COMPANY
AS AT  JUNE 
ALL EXPRESSED IN NZM
NZD USD AUD EUR JPY GBP OTHER TOTAL
Foreign currency risk
Non-derivative financial instruments
Interest-bearing assets
145 - 39 - - - - 184
Amounts owing from subsidiaries*
808 (357) 8 - (59) - - 400
Interest-bearing liabilities
(496) (362) - - (150) - - (1,008)
Net financial position exposure before hedging activities
457 (719) 47 - (209) - - (424)
Foreign currency derivatives
Notional principal (NZ$M)
Cash flow hedges (538) 1,107 (241) (48) (57) (78) (88) 57
Non-hedge accounted (652) 762 (81) 4 (4) 4 1 34
(733) 1,150 (275) (44) (270) (74) (87) (333)
Cash flows in respect of foreign currency cash flow hedges
are expected to occur as follows:
Not later than 1 year
(538) 1,107 (241) (48) (57) (78) (88) 57
(538) 1,107 (241) (48) (57) (78) (88) 57
* 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.
United States dollar denominated payables to a subsidiary form part of a set-off arrangement with a New Zealand dollar denominated
intercompany receivable from that subsidiary.
Japanese Yen denominated finance lease obligations held within a wholly owned subsidiary are designated at the Air New Zealand
Group level as qualifying cash flow hedges of highly probable forecast Japanese revenue arising through the Parent company. Japanese
Yen denominated payables to a subsidiary forms part of a set-off arrangement with a New Zealand dollar denominated intercompany
receivable from that subsidiary. The forecast transactions are not included in the above table.
Other foreign currency balances with related parties are immaterial to foreign currency fluctuations.
COMPANY
AS AT  JUNE 
ALL EXPRESSED 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.
United States dollar denominated payables to a subsidiary form part of a set-off arrangement with a New Zealand dollar denominated
intercompany receivable from that subsidiary.
Notes to the Financial Statements (Continued)
As at 30 June 2013