Aer Lingus 2013 Annual Report Download - page 133

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131
On 4 November 2011, Aer Lingus shareholders approved a special resolution at an Extraordinary General Meeting ("EGM") to take the
necessary steps to seek the approval of the High Court ("the Court") to create up to €500 million of distributable reserves on the balance
sheet.
The matter was heard by the Court in July 2012. Objections were made by trustees of both the Irish Airlines (General Employees)
Superannuation Scheme ("the IASS") and the Irish Airlines (Pilots) Superannuation Scheme ("the IA(P)SS"). Following review of
submissions from all parties, on 15 March 2013, the Court approved the creation of distributable reserves as requested.
The effect of the creation of €500 million of distributable reserves has been the corresponding reduction in the capital conversion reserve
fund and the capital redemption reserve fund (in each case reduced to nil), along with a further balancing reduction to the share premium
account of €151m. The Court made a condition that no distribution should be made which would leave the remaining aggregated
distributable and non-distributable reserves of Aer Lingus at an amount less than the aggregate of the deficits in the IASS and the IA(P)SS,
as relating to current and former Aer Lingus employees, without 28 days prior notice being given by Aer Lingus to the corporate trustees of
each of the IASS and IA(P)SS. The requirement to give notice of distribution does not preclude Aer Lingus from making a distribution.
2013
2012
€’000
€’000
Other reserves
Cash flow hedging reserve
At 1 January
7,069
25,681
Movement in the period
(3,443)
(21,271)
Deferred tax on movement in the period
430
2,659
At 31 December
4,056
7,069
Available-for-sale reserve
At 1 January
264
393
Movement in the period
(161)
(147)
Deferred tax on movement in year
20
18
At 31 December
123
264
Treasury shares
At 1 January
(5,615)
(5,615)
Exercise of LTIP awards
2,728
-
At 31 December
(2,887)
(5,615)
Share based payment reserve
At 1 January
5,865
2,900
Exercise of LTIP awards
(3,607)
-
Movement in the period
3,219
3,389
Deferred tax on movement in the period
838
(424)
At 31 December
6,315
5,865
Retranslation reserve
At 1 January
-
-
Retranslation of investment in Joint Venture
(481)
-
At 31 December
(481)
-
Total other reserves
7,126
7,583
Share premium
The share premium account arises from amounts paid up on issued share capital in excess of the nominal values of the shares issued.
Capital conversion reserve fund
The capital conversion reserve fund balance was attributable to the re-denomination of the nominal value of the Group’s shares from punt to
euro in 2000.
Capital redemption reserve fund
The capital redemption reserve fund balance was attributable to shares which were purchased and cancelled by the Group prior to its initial
public offering for nil consideration pursuant to Sections 41(2) and 43 of the Companies (Amendment) Act, 1983.
Cash flow hedging reserve
The cash flow hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging
instruments (net of tax), principally relating to fuel and forward currency contracts.
Available-for-sale reserve
The available for sale reserve is attributable to the unamortised portion of fair value gains realised on the reclassification of available for sale
bonds to loans and receivables in 2008. The reserve is amortised over remaining bond maturity periods.
Treasury shares
The treasury shares reserve comprises the cost of Aer Lingus Group plc ordinary shares held in order to fulfil awards under the Group’s
share based payment schemes.
Share based payment reserve
The reserve comprises amounts expensed in the Group Income Statement in connection with awards made or options issued under the
Group’s share based payment schemes, less any exercises or lapses of such awards or options.