Cathay Pacific 2006 Annual Report Download - page 72

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Cathay Pacific Airways Limited Annual Report 2006
70
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 2007 to 2018. The future payments under these finance leases are as follows:
Group Company
2006
HK$M
2005
HK$M
2006
HK$M
2005
HK$M
Within one year 4,831 4,029 4,296 4,170
After one year but within two years 3,444 4,097 3,561 4,152
After two years but within five years 10,118 9,758 12,162 11,638
After five years 15,875 16,056 12,963 14,893
Total future payments 34,268 33,940 32,982 34,853
Interest charges relating to future periods (7,268) (7,609) (9,042) (9,579)
Present value of future payments 27,000 26,331 23,940 25,274
Security deposits, notes and zero
coupon bonds (9,516) (10,139) (3,374) (3,600)
Amounts due within one year included
under current liabilities (2,548) (1,911) (2,579) (3,019)
14,936 14,281 17,987 18,655
The present value of future payments is repayable as follows:
Group Company
2006
HK$M
2005
HK$M
2006
HK$M
2005
HK$M
Within one year 3,900 3,197 3,541 3,419
After one year but within two years 2,654 3,261 2,961 3,445
After two years but within five years 8,107 7,658 9,951 9,529
After five years 12,339 12,215 7,487 8,881
27,000 26,331 23,940 25,274
As at 31st December 2006, the Group and the Company had obligations under finance leases which were
defeased by funds and other investments amounting to HK$8,775 million and HK$1,084 million respectively
(2005: HK$8,507 million and HK$1,080 million). Accordingly these liabilities and the related funds, as well as
related expenditure and income, have been netted off in the accounts.
(c) Long-term liabilities by currency at the year end are summarised below:
Group Company
2006
HK$M
2005
HK$M
2006
HK$M
2005
HK$M
US dollar 20,236 16,045 19,739 19,145
Euro 2,649 2,746 3,407 3,459
Hong Kong dollar 5,196 1,457 3,625 1,424
Singapore dollar 3,170 1,049 3,170 1,049
Pound sterling 355 688 355 688
Japanese yen 337 470 820 945
31,943 22,455 31,116 26,710
Further information on long-term liabilities is shown in note 28 to the accounts.
Notes to the Accounts Balance Sheet