Ryanair 2009 Annual Report Download - page 136

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Property, plant and equipment
Property, plant and equipment is stated at historical cost less accumulated depreciation and provisions
for impairments, if any. Cost includes expenditure that is directly attributable to the acquisition of the asset. Cost
may also include transfers from equity of any gain or loss on qualifying cash-flow hedges of foreign currency
purchases of property, plant and equipment. Depreciation is calculated so as to write off the cost, less estimated
residual value, of assets on a straight-line basis over their expected useful lives at the following annual rates:
Rate of
Depreciation
Plant and equipment ....................................................................................................................... 20-33.3%
Fixtures and fittings ....................................................................................................................... 20%
Motor vehicles ............................................................................................................................... 33.3%
Buildings ........................................................................................................................................ 5%
Aircraft are depreciated on a straight-line basis over their estimated useful lives to estimated residual
values. The estimates of useful lives and residual values at year-end are:
Aircraft Type Number of Aircraft at March 31, 2009 Useful Life Residual Value
Boeing 737-800s 138(a) 23 years from date of manufacture 15% of market value,
determined periodically
______________
(a) The Company operated 181 aircraft as of March 31, 2009, of which 43 were leased.
The Company’s estimate of the recoverable amount of aircraft residual values is 15% of market value,
determined periodically, based on actual aircraft disposals during the year, agreements to sell further aircraft in
future periods and current market valuations.
An element of the cost of an acquired aircraft is attributed on acquisition to its service potential,
reflecting the maintenance condition of its engines and airframe. This cost, which can equate to a substantial
element of the total aircraft cost, is amortised over the shorter of the period to the next maintenance check
(usually between 8 and 12 years for Boeing 737-800 aircraft) or the remaining life of the aircraft. The costs of
subsequent major airframe and engine maintenance checks are capitalised and amortised over the shorter of the
period to the next check or the remaining life of the aircraft.
Advance and option payments made in respect of aircraft purchase commitments and options to acquire
aircraft are recorded at cost and separately disclosed within property, plant and equipment. On acquisition of the
related aircraft, these payments are included as part of the cost of aircraft and are depreciated from that date.
Rotable spare parts held by the Company are classified as property, plant and equipment if they are
expected to be used over more than one period and are accounted for and depreciated in the same manner as the
related aircraft.
Gains and losses on disposal of items of property, plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised on a
net basis within other income in profit and loss.
During the 2009 fiscal year accelerated depreciation of €51.6 million (2008: €10.6 million) arose in
relation to aircraft disposals in such fiscal year and an agreement to dispose of aircraft at future dates (in fiscal
year 2010).