EasyJet 2012 Annual Report Download - page 93

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Fair value of derivative financial instruments
At 30 September 2012
Quantity
million
Non-
current
assets
£ million
Current
assets
£ million
Current
liabilities
£ million
Non-
current
liabilities
£ million
Total
£ million
Designated as cash flow hedges:
US dollar 3,204 1 4 (11) (15) (21)
Euro 653 5 20 – – 25
Swiss franc 202 1 4 – – 5
Jet fuel 2 14 45 (6) (9) 44
Designated as held for trading: US dollar 850 – – (9) – (9)
21 73 (26) (24) 44
At 30 September 2011
Quantity
million
Non-
current
assets
£ million
Current
assets
£ million
Current
liabilities
£ million
Non-
current
liabilities
£ million
Total
£ million
Designated as cash flow hedges:
US dollar 2,157 18 23 (2) – 39
Euro 501 3 8 – – 11
Swiss franc 140 1 1 (3) (1) (2)
Jet fuel 2 2 43 (47) (26) (28)
Designated as held for trading: US dollar 1,240 – 8 – – 8
24 83 (52) (27) 28
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 item affects the income statement.
easyJet uses forward contracts to hedge US dollar transaction currency risk (comprising fuel, leasing and maintenance payments), 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.
Accounts & other information
easyJet plc
Annual report and accounts 2012 91