Aer Lingus 2008 Annual Report Download - page 74

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AER LINGUS GROUP PLC - ANNUAL REPORT 2008
72
12 Other financial assets (continued)
The effective interest rates of the financial assets reclassified into loans and receivables at the date of reclassification were
between 2.8% and 4.5%.
The estimated undiscounted cash flows that the Group expected to recover from the reclassified financial assets as at the date
of reclassification was:
Between 1 Between 2 Over
1 year or less and 2 years and 5 years 5 years
€’000 €’000 €’000 €’000
Unlisted debt securities: 39,917 5,663 12,703 77,100
13 Derivative financial instruments
2008 2007
€’000 €’000
Assets Liabilities Assets Liabilities
Cross currency interest rate swaps – held for trading - 6,285 - 6,252
Forward foreign exchange contracts – cash flow hedges 70,319 - - 10,032
Forward fuel price contracts – cash flow hedges - 142,995 10,683 -
Total 70,319 149,280 10,683 16,284
Less non-current portion:
Cross currency interest rate swaps – held for trading - 6,285 - 6,252
Forward foreign exchange contracts – cash flow hedges 39,447 - - 3,803
Forward fuel price contracts – cash flow hedges - 28,789 - -
Non-current portion 39,447 35,074 - 10,055
Current portion 30,872 114,206 10,683 6,229
The carrying amounts of the Group’s derivative financial instruments are denominated in the following currencies:
2008 2007
€’000 €’000
USD GBP USD GBP
Cross currency interest rate swaps – held for trading (6,285) - (6,252) -
Forward foreign exchange contracts – cash flow hedges 57,981 12,338 (13,178) 3,146
Forward fuel price contracts – cash flow hedges (142,995) - 10,683 -
Total (91,299) 12,338 (8,747) 3,146
Forward foreign exchange contracts
The notional principal amounts of the outstanding forward foreign exchange contracts at 31 December 2008 were €1,251.1m
(2007: €537.3m).
Cross currency interest rate swaps
The notional principal amounts of the outstanding cross currency interest rate swap contracts at 31 December 2008 were
€20.2m (2007: €20.2m).
At 31 December 2008 the fixed interest rates vary from 2.5% to 3.8% (2007: 2.5% to 3.8%).
Aircraft fuel price contracts
The Group enters into derivative contracts to fix the price of its forecast aircraft fuel purchases. The notional principle amounts
of the outstanding contracts at 31 December 2008 were €348.8m (2007: €94.0m). The outstanding fuel price contracts at 31
December 2008 amounted to 541,917 metric tonnes of aircraft fuel (2007: 175,782 metric tonnes).
The maximum exposure to credit risk at the reporting date is the fair value of the derivative assets in the balance sheet.
There was no ineffectiveness recorded for cash flow hedges in 2008 (2007: credit of €0.9m).
Notes to the Consolidated Financial Statements
continued