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51Cathay Pacific Airways Limited Annual Report 2003
Notes to the Accounts – Balance Sheet
14. LONG-TERM LIABILITIES
(continued)
Borrowings other than bank loans are repayable on various dates up to 2010 at interest rates between 0% and
7.0% per annum.
Long-term loans and other liabilities of the Group and the Company not wholly repayable within five years
amounted to HK$954 million and HK$483 million respectively (2002: HK$935 million and HK$460 million).
As at 31st December 2003, the Group and the Company had long-term liabilities which were defeased
by funds and other investments totalling HK$28,000 million (2002: HK$28,660 million). Accordingly,
these liabilities and the related funds, as well as related expenditure and income, have been netted off in
the accounts.
(b) Obligations under finance leases
The Group has commitments under finance lease agreements in respect of aircraft and related equipment
expiring during the years 2004 to 2017. The future payments under these finance leases are as follows:
Group Company
2003 2002 2003 2002
HK$M HK$M HK$M HK$M
Within one year 5,328 6,645 5,350 6,621
After one year but within two years 6,679 4,804 6,690 4,840
After two years but within five years 10,598 12,790 11,916 13,610
After five years 19,874 19,341 22,315 22,487
Total future payments 42,479 43,580 46,271 47,558
Interest charges relating to future periods (9,615) (10,382) (13,308) (14,641)
Present value of future payments 32,864 33,198 32,963 32,917
Security deposits, notes and zero coupon bonds (12,937) (14,441) (4,815) (5,748)
Amounts due within one year included under current liabilities (2,896) (3,318) (3,721) (4,227)
17,031 15,439 24,427 22,942
The present value of future payments is repayable as follows:
Group Company
2003 2002 2003 2002
HK$M HK$M HK$M HK$M
Within one year 4,229 5,446 4,285 5,462
After one year but within two years 5,609 3,696 5,688 3,801
After two years but within five years 8,125 10,222 9,359 10,881
After five years 14,901 13,834 13,631 12,773
32,864 33,198 32,963 32,917
As at 31st December 2003, the Group and the Company had obligations under finance leases which were
defeased by funds and other investments amounting to HK$8,186 million and HK$1,554 million respectively
(2002: HK$7,725 million and HK$1,561 million). Accordingly these liabilities and the related funds, as well as
related expenditure and income, have been netted off in the accounts.