Qantas 2012 Annual Report Download - page 110

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FOR THE YEAR ENDED 30 JUNE 2012
Notes to the Financial Statements continued
B HEDGE RESERVE
At 30 June 2012 the Qantas Group held various types of derivative financial instruments that were designated as cash flow hedges
of future forecast transactions. These were hedging of:
— Future foreign currency revenue receipts and operational payments by future debt repayments in foreign currency and exchange
derivative contracts (forwards, swaps or options)
— Future aviation fuel purchases by crude, gasoil and jet kerosene derivative contracts (forwards, swaps or options)
— Future interest payments by interest rate derivative contracts (forwards, swaps or options)
— Future capital expenditure payments by foreign exchange derivative contracts (forwards or options)
To the extent that the hedges were assessed as highly effective, the effective portion of changes in fair value is included in the
hedge reserve. For further information on accounting for derivative financial instruments as cash flow hedges, refer to Note 1(F).
The periods in which the related cash flows are expected to occur are summarised below:
Qantas Group
2012
$M
Less than
1 Year 1 to 5 Years
More than
5 Years Total
Contracts to hedge
Future foreign currency receipts and payments   – 
Future aviation fuel payments () – – ()
Future interest payments () () – ()
Future capital expenditure payments () () – ()
()  – 
Tax effect ()
Total net gain included within hedge reserve 
2011
$M
Contracts to hedge
Future foreign currency receipts and payments  – 
Future aviation fuel payments  – – 
Future interest payments () () – ()
Future capital expenditure payments () () – ()
()  – 
Tax effect ()
Total net gain included within hedge reserve 
25. Derivatives and Hedging Instruments continued
QANTAS ANNUAL REPORT 2012108