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AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 201428
18. FINANCIAL RISK MANAGEMENT (CONTINUED)
COMPANY
AS AT 30 JUNE 2014
ALL EXPRESSED IN NZ$M
NZD USD AUD EUR JPY GBP OTHER TOTAL
Foreign currency risk
Non-derivative financial instruments
Interest-bearing assets
Amounts owing from subsidiaries*
Interest-bearing liabilities
90
842
(452)
-
(245)
(294)
35
11
-
-
-
-
-
(97)
(121)
-
-
-
-
-
-
125
511
(867)
Net financial position exposure before hedging activities
Foreign currency derivatives
Notional principal
Cash flow hedges
Non-hedge accounted
480
(500)
(561)
(539)
1,009
585
46
(260)
(42)
-
(61)
1
(218)
(49)
2
-
(95)
(1)
-
(83)
2
(231)
(39)
(14)
(581) 1,055 (256) (60) (265) (96) (81) (284)
Cash flows in respect of foreign currency cash flow
hedges are expected to occur as follows:
Not later than 1 year
Later than 1 year and not later than 2 years
(480)
(20)
984
25
(260)
-
(59)
(2)
(49)
-
(91)
(4)
(83)
-
(38)
(1)
(500) 1,009 (260) (61) (49) (95) (83) (39)
COMPANY
AS AT 30 JUNE 2013
ALL EXPRESSED IN NZ$M
NZD USD AUD EUR JPY GBP OTHER TOTAL
Foreign currency risk
Non-derivative financial instruments
Interest-bearing assets
Amounts owing from subsidiaries*
Interest-bearing liabilities
145
808
(496)
-
(357)
(362)
39
8
-
-
-
-
-
(59)
(150)
-
-
-
-
-
-
184
400
(1,008)
Net financial position exposure before hedging activities
Foreign currency derivatives
Notional principal
Cash flow hedges
Non-hedge accounted
457
(538)
(652)
(719)
1,107
762
47
(241)
(81)
-
(48)
4
(209)
(57)
(4)
-
(78)
4
-
(88)
1
(424)
57
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. The amounts prior to set off are shown in the table above and the
net amount disclosed in Notes 10 and 19.
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, for which the amounts prior to set off are disclosed in the table above. The net amount is disclosed in
Notes 10 and 19. The forecast transactions are not included in the above table.
Other foreign currency balances with related parties are immaterial to foreign currency fluctuations.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2014