Ryanair 2011 Annual Report Download - page 165

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Ryanair has generally been able to generate sufficient funds from operations to meet its non-aircraft
acquisition-related working capital requirements. Management believes that the working capital available to the
Company is sufficient for its present requirements and will be sufficient to meet its anticipated requirements for
capital expenditures and other cash requirements for the 2012 fiscal year.
(h) Guarantees
Details of the Company’s guarantees and the related accounting have been disclosed in Note 23 to the
consolidated financial statements.
(i) Sensitivity analysis
(i) Interest rate risk: Based on the levels of and composition of year-end interest bearing assets
and liabilities, including derivatives, at March 31, 2011, a plus or minus one-percentage-point movement in
interest rates would result in a respective increase or decrease of 110.9 million (net of tax) in net interest income
and expense in the income statement (2010: 112.4 million; 2009: 12.4 million). All of the Group’s interest rate
swaps are used to swap variable rate debt to fixed rate debt; consequently any changes in interest rates would
have an equal and opposite income statement effect for both the interest rate swaps and the debt.
(ii) Foreign currency risk: A plus or minus change of 10% in relevant foreign currency exchange
rates, based on outstanding foreign currency-denominated financial assets and financial liabilities at March 31,
2011 would have a respective positive or negative impact on the income statement of 13.7 million (net of tax)
(2010: 14.8 million; 2009: 13.6 million) and on equity of 1201.1 million (net of tax) (2010: 1153.0 million;
2009: 1190.0 million).
(iii) Equity price risk: A decrease of 10% in the Aer Lingus share price as of March 31, 2011
would result in a decrease of 111.4 million in the fair value of the available-for-sale financial assets (2010:
111.6 million; 2009: 19.3 million). The decrease would be recognised in other comprehensive income. An
increase of 10% in the Aer Lingus share price at March 31, 2011 would result in an increase of 111.4 million in
the fair value of the available-for-sale financial assets reserve (2010: 111.6 million; 2009: 19.3 million). Such an
increase would be recognised in other comprehensive income.
12 Deferred and current taxation
The components of the deferred and current taxation in the balance sheet are as follows:
At March 31,
2011 2010 2009
1M
1M 1M
Current tax (assets)/liabilities
Corporation tax (prepayment)/provision ................................
................................
(0.5) 0.9 0.4
Total current tax ................................................................................................
...............
(0.5) 0.9 0.4
Deferred tax liabilities
Origination and reversal of temporary differences on property,
plant and equipment, derivatives, pensions, and available-for
-sale securities ................................................................................................
.................
299.1 229.1 189.8
Total non-current deferred tax liabilities ................................
................................
299.1 229.1 189.8
Deferred tax (assets)
Net operating losses ................................................................
................................
(31.4) (29.5) (34.3)
Total non
-
current deferred tax assets
................................
................................
..............
(31.4) (29.5) (34.3)
Total deferred tax liabilities (net)
................................
................................
................
267.7 199.6 155.5
Total tax liabilities (net) ................................................................
................................
267.2 200.5 155.9