EasyJet 2014 Annual Report Download - page 125

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Accounts & other information
www.easyJet.com 123
Fair value of derivative financial instruments
At 30 September 2014
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
3,358 17 8 (33) (3) (11)
Euro 990 16 39 – – 55
Swiss franc 238 3 6 – – 9
Jet fuel 3 – – (54) (20) (74)
36 53 (87) (23) (21)
At 30 September 2013
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 3,323 – – (31) (30) (61)
Euro 1,048 10 6 (6) (2) 8
Swiss franc 225 1 1 (1) – 1
Jet fuel 2 2 10 (22) (9) (19)
13 17 (60) (41) (71)
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.
The following financial assets and liabilities are subject to offsetting, enforceable master netting arrangements:
Gross
amount
£ million
Amount
not set off
£ million
Net
amount
£ million
At 30 September 2014
Derivative financial instruments
Assets
89 (69) 20
Liabilities
(110) 69 (41)
(21) – (21)
Gross
amount
£ million
Amount
not set off
£ million
Net
amount
£ million
At 30 September 2013
Derivative financial instruments
Assets
30 (26) 4
Liabilities
(101) 26 (75)
(71) – (71)
All financial assets and liabilities are presented gross on the face of the statement of financial position as the conditions for
netting specified in IAS 32 are not met.
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, the accumulated gains and losses previously recognised in other comprehensive
income are included in the carrying value of that asset. 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 transaction currency risks comprising fuel, leasing and maintenance US dollar
payments, euro and Swiss franc revenue receipts and jet fuel price risk. Where these hedges are assessed as highly effective,
gains and losses are deferred in other comprehensive income and transferred to the income statement when the related
cash flow occurs.