Qantas 2006 Annual Report Download - page 121

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119
Qantas Annual Report 2006
Notes to the Financial Statements
for the year ended 30 June 2006
Weighted
Average
Interest
Rate
% pa
Floating
Rate
$M
Fixed Rate Maturing in:
Non-
Interest-
Bearing
$M
Total
$M
2005 (previous GAAP)
Less
than
1 Year
$M
1 to 5
Years
$M
More
than
5 Years
$M
INTEREST EARNING FINANCIAL ASSETS Notes
Cash and cash equivalents 65.66 198.0 1,705.8 – – – 1,903.8
Aircraft security deposits 75.56 46.5 0.4 77.4 – 3.1 127.4
Loans receivable 77.96 – – 13.5 128.2 – 141.7
Net receivables under hedge/swap contracts1172.2 11.0 240.4 250.8 – 674.4
416.7 1,717.2 331.3 379.0 3.1 2,847.3
INTEREST-BEARING FINANCIAL LIABILITIES
Bank loans – secured 16 3.28 1,711.8 81.7 384.0 548.0 – 2,725.5
Bank loans – unsecured 16 6.06 630.0 – – – – 630.0
Other loans – unsecured 16 7.38 717.2 – 454.0 – – 1,171.2
Lease liabilities 16 8.35 445.9 29.1 628.9 284.1 – 1,388.0
3,504.9 110.8 1,466.9 832.1 – 5,914.7
Net fi nancial (liabilities)/assets (3,088.2) 1,606.4 (1,135.6) (453.1) 3.1 (3,067.4)
UNRECOGNISED FINANCIAL ASSETS/(LIABILITIES)
Interest rate swaps21,054.6 (1,097.8) (32.0) 75.2 – –
1 Interest receivable/payable has been included in the calculation of the effective interest rate of the underlying financial assets or liability. Excludes unrealised amounts on
revenue back-to-back hedges. As at 30 June 2005, the amount of deferred or unrecognised gains or losses on hedges of net revenue designated to service long-term debt
is $228.4 million.
2 Notional principal amounts.
(B) FOREIGN CURRENCY RISK
Cross-currency swaps are used to convert long-term foreign currency borrowings to currencies in which the Qantas Group has forecast sufficient surplus net
revenue to meet the principal and interest obligations under the swaps. These foreign currency borrowings have a maturity of between one and 12 years. To
the extent a gain or loss is incurred, this is deferred until the net revenue is realised. Forward foreign exchange contracts and currency options are used to
hedge a portion of remaining net foreign currency revenue or expenditure in accordance with Qantas Group policy. Net foreign currency revenue and
expenditure out to five years may be hedged within specific parameters, with any hedging outside these parameters requiring approval by the Board.
Purchases and sales of property, plant and equipment denominated in a foreign currency are hedged using a combination of forward foreign exchange
contracts and currency options at the date a firm commitment is entered into to buy or sell unless, otherwise approved by the Board.
For the year ended 30 June 2006, Other financial assets and liabilities includes derivative financial instruments used to hedge foreign currency totalling
$51.8 million (net asset). These are recognised at fair value in accordance with AASB 139.