Ryanair 2012 Annual Report Download - page 158

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158
The carrying values and fair values of the Company‘s financial liabilities by class and category were as
follows:
Amortised
Cost
Cash-Flow
Hedges
Fair-Value
Hedges
Total
Carrying
Value
Total Fair
Value
€M
€M
€M
€M
€M
At March 31, 2012
Long-term debt ................................................................
3,625.2
-
-
3,625.2
3,665.4
Derivative financial instruments
-Interest rate swaps ................................................................
-
80.3
-
80.3
80.3
-Carbon swaps ................................................................
-
1.5
1.5
1.5
Trade payables ................................................................
181.2
-
-
181.2
181.2
Accrued expenses ................................................................
327.0
-
-
327.0
327.0
Total financial liabilities at March 31, 2012 ................................
4,133.4
81.8
-
4,215.2
4,255.4
At March 31, 2011
Long-term debt ................................................................
3,649.4
-
-
3,649.4
3,621.1
Derivative financial instruments
- U.S. dollar currency forward
contracts ................................................................................................
-
72.0
-
72.0
72.0
-Interest rate swaps ................................................................
-
61.7
-
61.7
61.7
Trade payables ................................................................
150.8
-
-
150.8
150.8
Accrued expenses ................................................................
273.2
-
-
273.2
273.2
Total financial liabilities at March 31, 2011 ................................
4,073.4
133.7
-
4,207.1
4,178.8
At March 31, 2010
Long-term debt ................................................................
2,956.2
-
-
2,956.2
2,955.8
Derivative financial instruments
- Interest rate swaps ................................................................
-
76.4
-
76.4
76.4
Trade payables ................................................................
154.0
-
-
154.0
154.0
Accrued expenses ................................................................
260.3
-
-
260.3
260.3
Total financial liabilities at March 31, 2010 ................................
3,370.5
76.4
-
3,446.9
3,446.5
Estimation of fair values
Fair value is the amount at which a financial instrument could be exchanged in an arm‘s length
transaction between informed and willing parties, other than as part of a forced liquidation sale. The following
methods and assumptions were used to estimate the fair value of each material class of the Company‘s financial
instruments:
Cash and liquid resources: Carrying amount approximates fair value due to the short-term nature of
these instruments. Cash and cash resources comprise cash and cash equivalents, short-term investments and
restricted cash.
Fixed-rate long-term debt: The repayments which Ryanair is committed to make have been
discounted at the relevant market rates of interest applicable (including credit spreads) at March 31, 2012, 2011,
and 2010 which would be payable to a third party to assume the obligations.
Derivatives – interest rate swaps: Discounted cash-flow analyses have been used to determine the
estimated amount Ryanair would receive or pay to terminate the contracts. Discounted cash-flow analyses are
based on forward interest rates.
Derivatives – currency forwards, aircraft fuel contracts and carbon swaps: A comparison of the
contracted rate to the market rate for contracts providing a similar risk management profile at March 31, 2012,
2011 and 2010 has been made.