Cathay Pacific 2004 Annual Report Download - page 49

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Cathay Pacific Airways Limited 2004 Annual Report 45
2. TURNOVER
(continued)
The Group is engaged in two main business segments: in passenger business through the Company and in freight traffic
through the Company and a subsidiary. Catering services and other airline supporting services which supplement the Group’s
main operating business are included in unallocated revenue.
Analysis of net assets by business segment:
The major revenue earning asset is the aircraft fleet which is jointly used by the passenger services and cargo services
segments. Management considers it is not appropriate to allocate such assets between the two segments as there
is no suitable basis for so doing. Accordingly, analysis of net assets by business segment is not disclosed.
3. OPERATING PROFIT
2004 2003
HK$M HK$M
Operating profit has been arrived at after charging/(crediting):
Depreciation of fixed assets
– Leased 1,855 1,930
– Owned 1,946 1,815
Amortisation of intangible assets 84 110
Operating lease rentals
– Land and buildings 326 324
– Aircraft and related equipment 948 675
– Others 34 19
Operating lease income
– Aircraft and related equipment (23 ) (13 )
Cost of stock expensed 1,224 933
Exchange differences (199 ) (244 )
Auditors’ remuneration 6 6
Income from unlisted investments (103 ) (267 )
Income from listed investments (3 ) (6 )
4. NET FINANCE CHARGES
2004 2003
HK$M HK$M
Net interest charges comprise:
– Obligations under finance leases 1,522 1,678
– Interest income on related security deposits, notes and bonds (837 ) (966 )
685 712
– Bank loans and overdrafts 92 112
– Interest income on related security deposits – (4 )
92 108
– Other loans wholly repayable within five years 8 3
– Other loans not wholly repayable within five years 6 14
791 837
Income from liquid funds:
– Funds with investment managers (97 ) (106 )
– Bank deposits and investments (111 ) (111 )
(208 ) (217 )
583 620
Finance income and charges relating to defeasance arrangements have been netted off in the above figures.
Notes to the Accounts – Profit and Loss Account