Aer Lingus 2013 Annual Report Download - page 30

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28
Aer Lingus has net assets of €852.8 million as at 31 December 2013 (2012: €834.7 million). While gross cash balances decreased by €11.1
million to €897.4 million (2012: €908.5 million), the Group’s net cash position increased by €42.9 million to €419.8 million (2012: €376.9
million) due to a reduction in finance lease debt driven by scheduled repayments in the year.
The following significant balance sheet movements also occurred in 2013:
Net capital expenditure of €31.4 million, largely driven by the acquisition of aircraft engines, capitalised aircraft maintenance, facility
upgrades and other equipment costs. The depreciation charge in the year more than offsets this expenditure, leading to a reduction in the
carrying amount of the Group’s fixed assets.
Provisions decreased by €8.1 million, mainly due to the settlement in the year of restructuring obligations existing at 2012 year end.
Trade receivables increased by €17.0 million mainly due to increases in prepayments to suppliers linked to changes in commercial
terms agreed with these suppliers.
Finance lease payables reduced by €54.0 million following scheduled repayments in the year and the impact of favourable FX
movements.
Post retirement benefit obligations reduced by €6.6 million, mainly due to favourable movements in actuarial assumptions regarding the
rates at which the liabilities are discounted and demographic factors.
The Group made further investment in a leasing company in which it holds a 33% stake (“the Joint Venture”). At 31 December 2013,
the carrying value of the Group’s interest in the Joint Venture was €13.9 million. Refer to Note 16 for further details.
The net derivative hedging balance sheet position improved by €3.4 million year on year. The market value of the outstanding fuel
derivatives contracts has risen due to further fuel price increases in comparison to 2012, partially offset by a reduction in the value of
foreign exchange contracts, due to unfavourable movements in the euro/US$ exchange rate.
Retained earnings (and therefore distributable reserves) has increased by an additional €500 million over retained profit for the year
following the order by the High Court on 15 March 2013 confirming a corresponding reduction in certain of the other reserves of Aer
Lingus Group plc.