Cathay Pacific 2015 Annual Report Download - page 66

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Cathay Pacific Airways Limited
64
Notes to the Financial Statements Statement of Financial Position
8. Property, plant and equipment (continued)
(a) Finance leased assets
Certain aircraft are subject to leases with purchase options to be exercised at the end of the respective leases.
The remaining lease terms range from 1 to 10 years. Some of the rent payments are on a floating basis which are
generally linked to market rates of interest. All leases permit subleasing rights subject to appropriate consent from
lessors.Earlyrepaymentpenaltieswouldbepayableonsomeoftheleasesshouldtheybeterminatedpriortotheir
specified expiry dates.
(b) Operating leased assets
Certain aircraft, buildings and other equipment are under operating leases.
Under the operating lease arrangements for aircraft, the lease rentals are partially fixed and partially floating and
subleasing is not allowed. At 31st December 2015, thirteen Airbus A330-300s (2014: thirteen), nil Boeing 747-400
(2014:one),oneBoeing747-400BCF(2014:one),twenty-threeBoeing777-300ERs(2014:twenty-three),tenAirbus
A320-200s (2014: ten), six Airbus A321-200s (2014: six) and two Airbus A300-600Fs (2014: one) held under
operating leases, most with purchase options, were not capitalised. The estimated capitalised value of these leases
being the present value of the aggregate future lease payments is HK$18,831 million (2014: HK$21,234 million).
Operating leases for buildings and other equipment are normally set with fixed rental payments with options to
renew the leases upon expiry at new terms.
The future minimum lease payments payable under operating leases committed at 31st December 2015 for each of
the following periods are as follows:
2015
HK$M
2014
HK$M
Aircraft and related equipment:
 –withinoneyear 3,673 3,493
 –afteroneyearbutwithintwoyears 3,581 3,577
 –aftertwoyearsbutwithinfiveyears 8,308 8,733
 –afterfiveyears 7,786 10,233
23,348 26,036
Buildings and other equipment:
 –withinoneyear 769 787
 –afteroneyearbutwithintwoyears 600 664
 –aftertwoyearsbutwithinfiveyears 922 1,196
 –afterfiveyears 410 456
2,701 3,103
26,049 29,139
(c) Advance payments are made to manufacturers for aircraft and related equipment to be delivered in future years. As
at the year end, advance payments included in owned aircraft and related equipment amounted to HK$3,697 million
(2014: HK$3,842 million) for the Group. No depreciation is provided on these advance payments.
(d) Security, including charges over the assets concerned and relevant insurance policies, is provided to the leasing
companies or other parties that provide the underlying finance. Further information is provided in note 12 to the
financial statements.