Ryanair 2004 Annual Report Download - page 47

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18 FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
The fair value of Ryanair’s financial instruments at March 31, 2004 and March 31, 2003 was as follows:
2004 2004 2003 2003
Carrying amount Fair value Carrying amount Fair value
000 000 000 000
On balance sheet instruments
Cash on hand 25,778 25,778 77,866 77,866
Liquid resources 1,231,572 1,231,572 982,352 982,352
Short term borrowings (345) (345) (1,316) (1,316)
Long term debt (952,982) (997,685) (837,225) (912,576)
Off balance sheet instruments
Forward starting interest rate swaps (loss) - (44,875) - (81,024)
Interest rate swaps (loss) - (90,420) - -
US dollar currency forward contracts (loss) - (36,181) - (9,045)
Sterling currency forward contracts (loss) - - - (925)
Aircraft fuel price contracts gain - 16,723 - 3,306
All of the off balance sheet instruments shown above were held for hedging purposes. The fair value of the off balance sheet
instruments in the table above equates to the net unrealised gains and losses on these instruments which were unrecognised at
March 31, 2004 and March 31, 2003.
On the basis of no movement in fuel prices and exchange rates, these unrealised gains and losses would impact on Ryanair’s profit
and loss account in the following years:
Maturing in Total Maturing in Total
Fiscal 2005 Fiscal 2004 Fiscal 2004 Fiscal 2003
Off balance sheet instruments 000 000 000 000
US dollar currency forward contracts (loss) (36,181) (36,181) (9,045) (9,045)
Sterling currency forward contracts (loss) - - (925) (925)
Aircraft fuel price contracts gain 16,723 16,723 3,306 3,306
(19,458) (19,458) (6,664) (6,664)
Unrealised losses on the group’s forward starting interest rate swaps and interest rate swaps of 135.3m (2003: 81.0m) will be
amortised to the profit and loss account over the period from date of draw-down of the long term debt and operating leases
(typically 7 to 12 years fromthe yearend), as an offset to the related interest and rental expense.
(Continued)
Notes 47
A N N U A L R E P O RT & F I N A N C I A L S T A T E M E N T S 2 0 0 4