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AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2014 25
17. PROVISIONS
GROUP
2014
$M
GROUP
2013
$M
COMPANY
2014
$M
COMPANY
2013
$M
Provisions
Aircraft lease return costs
Restructuring
Other
173
14
9
154
4
2
173
13
2
154
1
-
196 160 188 155
Represented by:
Current
Non-current
31
165
15
145
24
164
11
144
196 160 188 155
Aircraft lease return costs
Balance at the beginning of the year
Amount provided
Amount utilised and released
Foreign exchange differences
154
58
(22)
(17)
150
61
(58)
1
154
58
(22)
(17)
150
61
(58)
1
Balance at the end of the year 173 154 173 154
Represented by:
Current
Non-current
20
153
10
144
20
153
10
144
173 154 173 154
Where a commitment exists to maintain aircraft held under operating lease arrangements, a provision is made during the lease term
for the lease return obligations specified within those lease agreements. The provision is based on the present value of the estimated
future costs of major airframe inspections and engine overhauls by making appropriate charges to the Statement of Financial
Performance, calculated by reference to the number of hours or cycles operated during the year. The provision is expected to be
utilised at the next inspection or overhaul upon the end of the lease.
GROUP
2014
$M
GROUP
2013
$M
COMPANY
2014
$M
COMPANY
2013
$M
Restructuring
Balance at the beginning of the year
Amount provided
Amount utilised
4
25
(15)
4
7
(7)
1
25
(13)
4
3
(6)
Balance at the end of the year 14 413 1
Represented by:
Current
Non-current
3
11
4
-
2
11
1
-
14 413 1
A restructuring provision is created where a detailed formal plan is developed and a valid expectation exists. Costs relating to ongoing
activities are not provided for.
GROUP
2014
$M
GROUP
2013
$M
COMPANY
2014
$M
COMPANY
2013
$M
Other
Balance at the beginning of the year
Amount raised
2
7
1
1
-
2
-
-
Balance at the end of the year 9 2 2 -
Represented by:
Current
Non-current
8
1
1
1
2
-
-
-
9 2 2 -
Other provisions include amounts relating to insurance, warranties and an onerous contract. Insurance and onerous contract provisions
are expected to be utilised within 12 months. Insurance provisions are based on historical claim experience. Warranty provisions
represent an estimate of potential liability for future rectification work in respect of past engineering services performed.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2014