EasyJet 2014 Annual Report Download - page 118

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116 easyJet plc Annual report and accounts 2014
Notes to the accounts continued
10 Loan notes
In 2001, easyJet, in consortium with six other UK airlines, formed The Airline Group Limited in order to acquire a non-controlling
interest in NATS, the company that owns the UK air traffic control system. easyJet's investment is principally in the form of
unsecured loan notes bearing interest at a fixed rate of 8%. Interest receivable is settled by the issue of additional loan notes.
Redemption is governed by a priority agreement among the consortium members.
2014
£ million
2013
£ million
At 1 October 7 10
Interest receivable converted to loan notes – 1
Redemption of loan notes (3) (4)
At 30 September 4 7
11 Other non-current assets
2014
£ million
2013
£ million
Deferred consideration and deposits held by aircraft lessors 76 76
Leased aircraft – shortfall on sale and leaseback 55 74
Recoverable supplemental rent (pledged as collateral) 19 32
Other 2 3
152 185
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.
12 Trade and other receivables
2014
£ million
2013
£ million
Trade receivables 62 94
Less provision for impairment (4) (2)
58 92
Prepayments and accrued income 90 64
Leased aircraft – shortfall on sale and leaseback 20 20
Recoverable supplemental rent (pledged as collateral) 10 –
Other receivables 22 18
200 194
The following amounts of trade and other receivables are past due but not impaired:
2014
£ million
2013
£ million
Up to three months past due 17 29
Over three months past due – 14
17 43
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
2014
£ million
2013
£ million
Cash and cash equivalents (original maturity less than three months) 424 1,013
Money market deposits (original maturity more than three months) 561 224
Current restricted cash 23 –
Non-current restricted cash 9 12
1,017 1,249
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.