EasyJet 2015 Annual Report Download - page 126
Download and view the complete annual report
Please find page 126 of the 2015 EasyJet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130
 |
 |
122 easyJet plc Annual report and accounts 2015
Notes to the company accounts continued
d) Reconciliation of profit for the year to cash generated from operations
2015
£ million
2014
£ million
Profit for the year 221 667
Adjustments for:
Finance and other similar income (15) (12)
Unrealised foreign exchange differences (12) (10)
Tax charge 5 5
Dividends received (199) (650)
Operating cash flows before movement in working capital – –
Changes in working capital:
Decrease in tax recoverable – 10
(Increase)/decrease in amounts due from subsidiary undertakings (35) 538
Decrease in amounts due to subsidiary undertakings – (253)
(35) 295
e) Guarantees and contingent liabilities
The Company has given a formal undertaking to the Civil Aviation Authority to guarantee the payment and discharge of all liabilities of
easyJet Airline Company Limited, a subsidiary of the Company. The guarantee is required for that company to maintain its operating
licence under Regulation 3 of the Licensing of Air Carriers Regulations 1992.
The Company has issued a guarantee in favour of easyJet Airline Company Limited, a subsidiary undertaking, in relation to the processing
of credit card transactions, and also in respect of hedging transactions carried out according to treasury policy.
The Company has guaranteed the contractual obligations of easyJet Airline Company Limited and easyJet Leasing Limited, both subsidiary
undertakings, in respect of its contractual obligations to Airbus SAS in respect of the supply of Airbus 320 family aircraft.
The Company has guaranteed the repayment of borrowings that financed the acquisition of aircraft by subsidiary undertakings. The
Company has also guaranteed the payment obligations for the lease of aircraft by subsidiary undertakings.
The Company has guaranteed certain letters of credit issued on behalf of subsidiary undertakings.
The Company has guaranteed the contractual obligations of easyJet Airline Company Limited, a subsidiary undertaking, in respect of a
$500m revolving credit facility. The revolving credit facility was agreed during the year ended 30 September 2015, for a minimum of five
years, and was undrawn at 30 September 2015.
No amount is recognised on the Company statement of financial position in respect to any of these guarantees as it is not probable that
there will be an outflow of resources
f) Related party transactions
Transactions with subsidiary undertakings, which principally relate to the provision of funding within the Group, are carried out on an arm’s
length basis. Outstanding balances are placed on intercompany accounts with no specified credit period, are unsecured, and bear market
rates of interest.
For full details of transactions and arrangements with easyJet’s largest shareholder, see note 26 of the consolidated accounts.