EasyJet 2010 Annual Report Download - page 76

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easyJet plc
Annual report and accounts 2010
Notes to the accounts
continued
74
12 Trade and other receivables
2010
£ million
2009
£ million
Trade receivables 76.5 158.4
Less: provision for impairment of trade receivables (2.8) (2.9)
73.7 155.5
Other receivables 30.9 22.8
Recoverable supplemental rent on leased aircraft (pledged as collateral) 13.0 4.5
Prepayments and accrued income 76.5 59.0
194.1 241.8
Supplemental rent is pledged to lessors to provide collateral should an aircraft be returned in a condition that does not meet the
requirements of the lease and is refunded when qualifying heavy maintenance is performed, or is offset against the costs incurred at the
end of the lease.
Allowance for credit losses
Movements in the provision for impairment of trade receivables are shown below:
2010
£ million
2009
£ million
At 1 October 2.9 2.6
Increase in provision (included in “other costs”) 1.0 0.9
Amounts written off (1.1) (0.6)
At 30 September 2.8 2.9
Trade receivables are monitored and allowances are created when there is evidence that amounts due, according to the terms of the
receivable, may not be collected.
The following amounts of trade and other receivables are past due but not impaired:
2010
£ million
2009
£ million
Up to three months past due 21.5 21.1
Over three months past due 0.1 0.3
21.6 21.4
With respect to trade receivables that are neither impaired nor past due, there are no indications at the reporting date that the payment
obligations will not be met. Amounts due from trade receivables are short term in nature and largely comprise credit card receivables due
from financial institutions with credit ratings of at least A and, accordingly, the possibility of significant default is considered to be unlikely.
13 Cash and money market deposits
2010
£ million
2009
£ million
Cash and cash equivalents (original maturity less than three months) 911.9 788.6
Money market deposits (original maturity over three months) 260.0 286.3
Current restricted cash 23.1 24.3
Non-current restricted cash 32.5 48.0
1,227.5 1,147.2
Interest rates on money market deposits and restricted cash are repriced within 185 days based on prevailing market rates of interest.
Carrying value is not significantly different from fair value.