Aer Lingus 2012 Annual Report Download - page 88

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FINANCIAL STATEMENTS Aer Lingus Group Plc
ANNUAL REPORT 2012
86
9 Net exceptional items
Exceptional (losses)/gains comprise: 2012 2011
€’000 €’000
Northern European airspace closure costs (a) -39
Impairment of non-current assets (b) (3,952) (2,213)
Payment to discharge ESOT profit share obligation (c) 20 (177)
Restructuring (d) (17,191) 3,146
Statutory redundancy government refund (e) -90
Leave and return settlement (f) -(802)
Gain on surrender of head office site lease agreement (g) -21,016
Reclassification of cash flow hedging reserve (h) -11,595
Gain on revision of frequent flyer programme terms and conditions (i) -4,467
Takeover defence costs (j) (9,797) -
Reduction of impairment provision (k) 4,830 -
Other (l) (376) -
(26,466) 37,161
(a) Re-measurement of the provision in respect of estimated cost of compensating passengers for costs incurred as a result of the closure of
northern European airspace following the eruption of a volcano in Eyjafjallajokull, Iceland.
(b) The 2012 charge comprises impairment on an owned A320 aircraft which had been held for sale but in December 2012 was brought back
into the fleet (€2.2 million) and the impairment of other assets no longer expected to be utilised (€1.8 million). The 2011 charge is the net
of a profit of €1.0 million on the disposal of an owned A330 aircraft and a charge of €3.2 million, being the write-down of an aircraft to the
lower of Net Book Value and Fair Value less costs to sell.
(c) Re-measurement of a provision to fully extinguish the Group’s obligations to pay any further share of profits to the Aer Lingus Employee Share
Ownership Trust (“ESOT”). The 2012 charge relates to the finalisation of the payment to ESOT.
(d) Recognition of a provision of €9.9 million in respect of the restructuring of the Group's maintenance operation at Shannon, comprising
onerous lease and related property costs (€2.1 million) and employee severance costs (€7.8 million). The balance relates to additional
provisions for restructuring costs associated with the ongoing Greenfield cost reduction programme (€4.1 million) and Migration/Outsourcing
Schemes (€3.2 million).
(e) Statutory redundancy refunds relating to redundancies effected under the Greenfield cost reduction programme.
(f) The 2011 amount relates to fees and costs in respect of the 2010 settlement of tax obligations associated with 2008/2009 “leave and return”
programme.
(g) On 8 November 2011, the Group signed and completed a formal contract with Dublin Airport Authority plc ("DAA") for the surrender of Aer
Lingus' leasehold interest in its Head Office Building site (the "HOB site") to DAA. This was pursuant to the Group's announcement of 25 June
2010 that it had signed a Heads of Agreement with DAA in relation to the transaction.
The HOB site comprises 9.9 acres located at Dublin Airport, Co Dublin. It includes the head office building, car parking spaces and other
office and training spaces utilised by the Group. Following completion of the surrender, most Aer Lingus employees based in HOB have re-
located to office space in Hangar 6 and the remainder will move to another DAA property in Dublin Airport during 2013.
Notes to the consolidated financial statements (continued)