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65
Cathay Pacific Airways Limited Annual Report 2005
13. 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 2006 to 2017. The future payments under these finance leases are as follows:
Group Company
2005 2004 2005 2004
HK$M HK$M HK$M HK$M
Within one year 4,029 6,899 4,170 6,826
After one year but within two years 4,097 3,892 4,152 4,212
After two years but within five years 9,758 9,498 11,638 11,162
After five years 16,056 19,015 14,893 19,679
Total future payments 33,940 39,304 34,853 41,879
Interest charges relating to future periods (7,609) (8,504) (9,579) (11,504)
Present value of future payments 26,331 30,800 25,274 30,375
Security deposits, notes and zero coupon bonds (10,139) (12,163) (3,600) (4,344)
Amounts due within one year included
under current liabilities (1,911) (3,740) (3,019) (5,080)
14,281 14,897 18,655 20,951
The present value of future payments is repayable as follows:
Group Company
2005 2004 2005 2004
HK$M HK$M HK$M HK$M
Within one year 3,197 5,867 3,419 5,849
After one year but within two years 3,261 3,054 3,445 3,426
After two years but within five years 7,658 7,405 9,529 9,050
After five years 12,215 14,474 8,881 12,050
26,331 30,800 25,274 30,375
As at 31st December 2005, the Group and the Company had obligations under finance leases which were
defeased by funds and other investments amounting to HK$8,507 million and HK$1,080 million respectively
(2004: HK$8,735 million and HK$1,556 million). Accordingly these liabilities and the related funds, as well as
related expenditure and income, have been netted off in the accounts.
(c) Long-term liabilities by currency at the year end are summarised below:
Group Company
2005 2004 2005 2004
HK$M HK$M HK$M HK$M
US dollar 16,045 11,030 19,145 15,204
Euro 2,746 5,733 3,459 6,623
Hong Kong dollar 1,457 1,094 1,424 894
Singapore dollar 1,049 360 1,049 360
Pound sterling 688 990 688 990
Japanese yen 470 1,808 945 2,336
Others – 1,616 – 1,616
22,455 22,631 26,710 28,023
Further information on long-term liabilities is shown in note 27 to the accounts.
Notes to the Accounts Balance Sheet