Air New Zealand 2016 Annual Report Download - page 22

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Notes to the Financial Statements (continued)
As at 30 June 2016
20
AIR NEW ZEAL AND ANNUAL FINANCIAL RESULTS 2016
14. Revenue in Advance
Transportation sales in advance includes consideration received in respect of passenger and cargo sales for which the actual
carriage has not yet been performed.
Loyalty programme revenue in advance includes revenues associated with both the award of Airpoints Dollars to Airpoints
members as part of the initial sales transaction and with sales of Airpoints Dollars to third parties, net of estimated expiry
(non-redeemed Airpoints Dollars), in respect of which the Airpoints member has not yet redeemed their points.
Other revenue in advance includes membership subscriptions and contract related services revenue which relate to future periods.
2016
$M
2015
$M
Current
Transportation sales in advance
Loyalty programme
Other
972
121
18
924
110
21
1,111 1,055
Non-current
Loyalty programme
Other
157
4
145
5
161 150
15. Interest-Bearing Liabilities
Borrowings, bonds and finance lease obligations are initially recognised at fair value, net of transaction costs incurred. They are
subsequently stated at amortised cost using the effective interest rate method, where appropriate. Borrowings, bonds and finance
lease obligations are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability
for more than 12 months after the balance date.
2016
$M
2015
$M
Current
Secured borrowings
Unsecured bonds
Finance lease liabilities
89
150
225
46
-
207
464 253
Non-current
Secured borrowings
Unsecured bonds
Finance lease liabilities
841
-
1,262
466
150
1,453
2,103 2,069
Interest rates basis:
Fixed rate
Floating rate
803
1,764
830
1,492
At amortised cost 2,567 2,322
At fair value 2,594 2,314
The fair value of interest-bearing liabilities for disclosure purposes is calculated based on the present value of future principal and interest cash
flows, discounted at the market rate of interest for similar liabilities at reporting date.
All secured borrowings are secured over aircraft or aircraft related assets and are subject to floating interest rates.
The unsecured, unsubordinated fixed rate bonds have a maturity date of 15 November 2016 and an interest rate of 6.90% payable semi-annually.