Air New Zealand 2015 Annual Report Download - page 21

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Notes to the Financial Statements (continued)
As at 30 June 2015
Air New Zealand Annual Financial Results 2015 19
12. Investment in Other Entities (continued)
Disposal of subsidiaries
On 29 September 2014, the Group disposed of its interest in a wholly owned subsidiary, Altitude Aerospace Interiors Limited (‘Altitude’). The net
assets of Altitude at disposal date were $6 million. A gain on sale of $1 million was recognised upon disposal.
On 30 March 2015, the Group disposed of its interest in a wholly owned subsidiary, TAE Pty Limited and its wholly owned subsidiaries (‘TAE
Group’). The net assets of the TAE Group at disposal date were $39 million. A loss on sale of $5 million was recognised upon disposal which
included the transfer of foreign currency translation reserve losses of $5 million.
On 29 June 2015, the Group had entered into an unconditional agreement to dispose of its 100 percent interest in Safe Air Limited and its wholly
owned subsidiary (‘Safe Air Group’). Air New Zealand has effected the disposal (from an accounting perspective) on the date that the agreement
became unconditional. Legal completion occurred on 1 July 2015. The net assets of the Safe Air Group at disposal date were $11 million. No gain or
loss was recognised on disposal. As at 30 June 2015 Air New Zealand had amounts receivable from the Safe Air Group of $1 million.
The impact of the disposals on the Group financial statements was as follows:
ALTITUDE
$M
TAE GROUP
$M
SAFE AIR
GROUP
$M
TOTAL
$M
Consideration received
Cash and cash equivalents
Consideration receivable
7
-
37
2
-
11
44
13
Total consideration 7 39 11 57
Assets and liabilities disposed comprise:
Current assets
Trade and other receivables
Inventories
Other assets
Non current assets
Property, plant and equipment
Intangible assets
Other assets
Current liabilities
Trade and other payables
Revenue in advance
Income taxation
Provisions
Other liabilities
10
-
-
1
1
12
(6)
(8)
-
(3)
(1)
13
13
8
16
-
1
(6)
(1)
-
-
(5)
2
6
5
6
-
-
(3)
-
(2)
-
(3)
25
19
13
23
1
13
(15)
(9)
(2)
(3)
(9)
Net assets disposed 639 11 56
Consideration received
Net assets disposed
Foreign currency translation reserve reclassified to net profit
7
(6)
-
39
(39)
(5)
11
(11)
-
57
(56)
(5)
Gain/(loss) on disposal (recognised in Other expenses) 1 (5) - (4)
Associates and Joint Ventures
Significant associates and joint ventures comprise:
NAME RELATIONSHIP % OWNED PRINCIPAL COUNTRY OF BALANCE DATE
INCORPORATION
Christchurch Engine Centre (CEC) Associate 49.00 Engineering services New Zealand 31 December
Virgin Australia Holdings Limited Associate 25.92 Aviation Australia 30 June
ANZGT Field Services LLC Joint Venture 51.00 Engineering services United States 30 June
11Ants Analytics Group Limited Joint Venture 50.00 Data analytics New Zealand 31 March
Pacific Leisure Group Limited Joint Venture 50.00 Wholesale travel distributor New Zealand 30 June