Air New Zealand 2015 Annual Report Download - page 16

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AIR NEW ZEALAND GROUP
Notes to the Financial Statements (continued)
As at 30 June 2015
14
8. Other Assets (continued)
2015
$M
2014
$M
Current
Amounts owing from joint ventures and associates
Contract work in progress
Assets held for resale
Defined pension assets
Other assets
24
19
12
12
2
7
23
4
7
4
69 45
Non-current
Interest-bearing assets
Assets held for resale
Other assets
141
2
8
125
2
6
151 133
With the current fleet replenishment programme, spares are being marketed for sale. It is expected that proceeds will be received over the
next three years. In addition the Group is disposing of three Beech aircraft which are expected to be sold within 12 months and land and
buildings which will be settled by November 2015. The carrying value of the assets held for resale 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. No impairment expense was recognised
during the year (30 June 2014: $3 million).
The Group operates two defined benefit plans for qualifying employees in New Zealand and overseas. A net asset of $12 million (30 June
2014: $7 million) was recognised in respect of the New Zealand plan, which is now closed to new members. A net liability was recognised
in respect of the overseas plan of $1 million (30 June 2014: $1 million), which is included within Note 16 Other current liabilities. The plans
provide a benefit on retirement or resignation based upon the employee’s length of membership and final average salary. Each year an
actuarial calculation is undertaken using the Projected Unit Credit Method to calculate the present value of the defined benefit obligation and
the related current service cost. The current service cost recognised through earnings was $2 million (30 June 2014: $2 million).
Interest-bearing assets include registered transferable certificates of deposit (RTDs) that have been provided as security over credit card
obligations incurred by Air New Zealand. The RTD’s bear a three month fixed interest rate and mature in December 2018. These are subject
to potential offsetting under master netting arrangements, as disclosed in Note 24.