Ryanair 2010 Annual Report Download - page 155

Download and view the complete annual report

Please find page 155 of the 2010 Ryanair 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.

Page out of 198

  • 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
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198

153
Derivative financial instruments, all of which have been recognised at fair value in the Company’s
balance sheet, are analysed as follows:
At March 31,
2010 2009 2008
1M 1M 1M
Current assets
Gains on fair-value hedging instruments – maturing within one year
.................
- 0.7 -
Gains on cash-flow hedging instruments – maturing within one year
................
122.6 129.3 10.2
122.6 130.0 10.2
Non-current assets
Gains on cash flow hedging instruments – maturing after one year
....................
22.8 60.0 -
22.8 60.0 -
Total derivative assets ................................................................
......................
145.4 190.0 10.2
Current liabilities
Losses on fair value hedging instruments – maturing within one year
...............
- - (44.4)
Losses on cash flow hedging instruments – maturing within one year
...............
(41.0) (137.4) (97.3)
(41.0) (137.4) (141.7)
Non-current liabilities
Losses on fair value hedging instruments – maturing after one year
..................
- (0.3)
Losses on cash flow hedging instruments – maturing after one year
..................
(35.4) (54.1) (75.4)
(35.4) (54.1) (75.7)
Total derivative liabilities................................................................
.................
(76.4) (191.5) (217.4)
Net derivative financial instrument position at year-end
.............................
69.0 (1.5) (207.2)
All of the above gains and losses were unrealised at the period-end.
The table above includes the following derivative arrangements:
Fair value Fair value Fair value
2010 2009 2008
1M 1M 1M
Interest rate swaps (a)
Less than one year………………………………………………………..……
(41.0) (30.7) (10.5)
Between one and five years……………………………………………………
(38.6) (49.8) (38.3)
After five years………………………………………………………………...
3.2 (4.3) (10.7)
(76.4) (84.8) (59.5)
Foreign currency forward contracts (a)
Less than one year……………………………………………………………..
80.0 130.0 (127.0)
Between one and five years……………………………………………………
22.8 60.0 (26.4)
After five years………………………………………………………………...
- - (0.3)
102.8 190.0 (153.7)
Commodity forward contracts
Less than one year……………………………………………………………..
42.6 (106.7) 6.0
42.6 (106.7) 6.0
Net derivative position at year end………………………………………….
69.0 (1.5) (207.2)
(a) Additional information in relation to the above interest rate swaps and forward currency contracts (i.e. notional value
and weighted average interest rates) can be found in Note 11 to the consolidated financial statements.
Interest rate swaps are primarily used to convert a portion of the Company’s floating rate exposures on
borrowings and operating leases into fixed rate exposures and are set so as to match exactly the critical terms of
the underlying debt or lease being hedged (i.e. notional principal, interest rate settings, re-pricing dates). These
are all classified as cash-flow hedges of the forecasted variable interest payments and rentals due on the
Company’s underlying debt and operating leases and have been determined to be highly effective in achieving
offsetting cash flows. Accordingly, no ineffectiveness has been recorded in the income statement relating to
these hedges in the current and preceding years.