Cathay Pacific 1999 Annual Report Download - page 45

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Notes to the Accounts – Balance Sheets
49CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1999
16. Long-term liabilities
(continued)
(b) Obligations under finance leases
The Group has commitments under finance lease agreements in respect of aircraft and related equipment
expiring during the years 2000 to 2016. The future payments under these finance leases are as follows:
Group Company
1999 1998 1999 1998
HK$M HK$M HK$M HK$M
Within one year 3,884 4,846 4,203 4,914
After one year but within two years 4,237 3,949 4,345 4,307
After two years but within five years 15,619 13,572 15,545 14,903
After five years 28,478 30,199 22,356 31,124
Total future payments 52,218 52,566 46,449 55,248
Interest charges relating to future periods (16,126) (16,956) (12,767) (17,819)
Present value of future payments 36,092 35,610 33,682 37,429
Security deposits, notes and zero coupon bonds (15,271) (13,615) (5,184) (5,021)
Amounts due within one year included under
current liabilities (1,408) (1,360) (2,141) (2,471)
19,413 20,635 26,357 29,937
The present value of future payments is repayable as follows:
Group Company
1999 1998 1999 1998
HK$M HK$M HK$M HK$M
Within one year 1,850 2,312 2,164 2,490
After one year but within two years 2,166 1,605 2,396 1,970
After two years but within five years 10,220 7,352 10,574 8,320
After five years 21,856 24,341 18,548 24,649
36,092 35,610 33,682 37,429
As at 31st December 1999, the Company and the Group had obligations under finance leases which were
defeased by funds and other investments amounting to HK$1,555 million and HK$3,714 million respectively
(1998: HK$2,117 million and HK$3,382 million). Accordingly, these liabilities and the related funds, as well as
related expenditure and income, have not been included in the consolidated accounts.
The Company’s obligations under finance leases exceeded the Group’s by HK$1,819 million in 1998 as a
result of net amounts owing to subsidiary companies on certain aircraft financing arrangements, which have
been eliminated on consolidation.