EasyJet 2013 Annual Report Download - page 126

 easyJet plc Annual report and accounts 2013
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Notes to the accounts continued
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Income statement impact: gain/(loss)       ±
Impact on other comprehensive
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Currency rates
At 30 September 2012
US dollar
+10%
£ million
US dollar
-10%
£ million
Euro
+10%
£ million
Euro
-10%
£ million
Interest rates
1% increase
£ million
Fuel price
10% increase
£ million
Income statement impact: gain/(loss) 17 (13) (3) 2 (1) –
Impact on other comprehensive
income: increase/(decrease) 164 (134) (43) 35 – 111
The market risk sensitivity analysis has been calculated based on spot rates for the US dollar, euro and jet fuel at close
of business on 30 September each year.
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Commitments under operating leases
Aircraft Other
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2012
£ million
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2012
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Not later than one year  85  2
Later than one year and not later than five years  214  2
Later than five years  51  2
 350  6
easyJet holds 72 aircraft (2012: 55 aircraft) under operating leases, with initial lease terms ranging from five to ten years.
easyJet is contractually obliged to carry out maintenance on these aircraft, and the cost of this is provided based on the
number of flying hours and cycles operated. Further details are given in the critical accounting policies section of note 1.
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Not later than one year  14
Later than one year and not later than five years  129
Later than five years  93
 236
Future finance charges  (31)
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easyJet holds 11 (2012: 11) aircraft under finance leases with 10 year initial terms. Further details are given in notes 8 and 14.
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easyJet is involved in a number of disputes and litigation which arose in the normal course of business. The likely outcome
of these disputes and litigation cannot be predicted, and in complex cases reliable estimates of any potential obligation may
not be possible.
Having reviewed the information currently available, management considers that the ultimate resolution of these
disputes and litigation is unlikely to have a material adverse effect on easyJet’s results, cash flows or financial position.
At 30 September 2013 easyJet had outstanding letters of credit and performance bonds totalling £40 million
(2012: £37 million), of which £37 million (2012: £34 million) expires within one year. The fair value of these instruments
at each year end was negligible.
No amount is recognised on the statement of financial position in respect of any of these financial instruments
as it is not probable that there will be an outflow of resources.
124 easyJet plc Annual report and accounts 2013