EasyJet 2010 Annual Report Download - page 84

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easyJet plc
Annual report and accounts 2010
Notes to the accounts
continued
82
22 Financial instruments continued
Fair value of derivative financial instruments
At 30 September 2010
Quantity
million
Non-current
assets
£ million
Current
assets
£ million
Current
liabilities
£ million
Non-current
liabilities
£ million
Total
£ million
Forward contracts
Designated as cash flow hedges:
US dollar 911.3 1.6 13.7 (3.9) (2.2) 9.2
Euro 263.3 2.5 11.6 – – 14.1
Swiss franc 69.0 – – (0.6) – (0.6)
Jet fuel 1.5 4.1 27.3 (3.8) (1.8) 25.8
Designated as held for trading:
US dollar 1,055.0 – – (1.3) – (1.3)
8.2 52.6 (9.6) (4.0) 47.2
At 30 September 2009
Quantity
million
Non-current
assets
£ million
Current
assets
£ million
Current
liabilities
£ million
Non-current
liabilities
£ million
Total
£ million
Forward contracts
Designated as cash flow hedges:
US dollar 874.2 2.5 37.4 (6.2) (0.7) 33.0
Euro 200.0 – 0.1 (15.4) – (15.3)
Jet fuel 1.2 5.3 17.8 (69.5) (1.9) (48.3)
Designated as held for trading:
US dollar 825.0 – 12.7 – – 12.7
7.8 68.0 (91.1) (2.6) (17.9)
For currency contracts, quantity represents the nominal value of currency contracts held, disclosed in the contract currency. For jet fuel
contracts, quantity represents contracted metric tonnes.
All derivative financial instruments are in level 2 of the IFRS 7 fair value hierarchy.
Derivatives designated as cash flow hedges
All derivatives to which hedge accounting is applied are designated as cash flow hedges.
Changes in fair value are recognised directly in other comprehensive income, to the extent that they are effective, with the ineffective
portion being recognised in the income statement.
Where the hedged item is a non financial asset or liability, the accumulated gains and losses previously recognised in other comprehensive
income are included in the carrying value of that asset or liability. Otherwise accumulated gains and losses are recognised in the income
statement in the same period in which the hedged items affects the income statement.
easyJet uses forward contracts to hedge US dollar transaction currency risk (comprising fuel, leasing and maintenance payments and, in
the prior year only, capital expenditure), jet fuel price risk and euro and Swiss franc revenues. Where these hedges are assessed as highly
effective, gains and losses are deferred in other comprehensive income and transferred to the income statement or cost of property,
plant and equipment when the related cash flow occurs.