Ryanair 2012 Annual Report Download - page 94

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concessions provided by the seller in the form of credit memoranda. The Company financed this expenditure
with a 10-year euro-denominated loan provided by the Export Development Corporation of Canada for up to
85% of the net purchase price, with the remainder provided by cash flows from operations.
In 2002, Ryanair entered into a contract to purchase three additional Boeing 737-800 flight simulators
from CAE. The first of these simulators was delivered in 2004 and the second and third simulators were
delivered in the 2008 fiscal year. The gross price of each simulator was approximately $10.3 million, not taking
into account certain price concessions provided by the seller in the form of credit memoranda. In September
2006 Ryanair entered into a new contract with CAE to purchase B737NG Level B flight simulators. Two such
simulators were delivered in the 2009 fiscal year. The gross price of each simulator is approximately $8 million,
not taking into account certain price concessions provided by the seller in the form of credit memoranda and
discounts.
Contractual Obligations. The table below sets forth the contractual obligations and commercial
commitments of the Company with definitive payment terms, which will require significant cash outlays in the
future, as of March 31, 2012. These obligations primarily relate to Ryanair‘s aircraft purchase and related
financing obligations, which are described in more detail above. For additional information on the Company‘s
contractual obligations and commercial commitments, see Note 23 to the consolidated financial statements
included in Item 18.
The amounts listed under ―Finance Lease Obligations‖ reflect the Company‘s obligations under its
JOLCOs. See ―Item 5. Operating and Financial Review and Prospects Liquidity and Capital Resources.‖
The amounts listed under ―Purchase Obligations‖ in the table reflect obligations for aircraft purchases
and are calculated by multiplying the number of aircraft the Company is obligated to purchase under its current
agreements with Boeing during the relevant period by the Basic Price for each aircraft pursuant to the relevant
contract, with the dollar-denominated Basic Price being converted into euro at an exchange rate of $1.3356 =
€1.00 (based on the European Central Bank Rate on March 31, 2012). The relevant amounts therefore exclude
the effect of the price concessions granted to Ryanair by Boeing and CFM, as well as any application of the
Escalation Factor. As a result, Ryanair‘s actual expenditures for aircraft during the relevant periods will be
lower than the amounts listed under ―Purchase Obligations‖ in the table.
With respect to purchase obligations under the terms of the 2005 Boeing contract, the Company was
required to pay Boeing 1% of the Basic Price of each of the 70 firm-order Boeing 737-800 aircraft at the time
the contract was signed in February 2005, and will be required to make periodic advance payments of the
purchase price for each aircraft it has agreed to purchase during the course of the two-year period preceding the
delivery of each aircraft. As a result of these required advance payments, the Company will have paid up to 30%
of the Basic Price of each aircraft prior to its delivery (including the addition of an estimated ―Escalation
Factor‖ but before deduction of any credit memoranda and other concessions); the balance of the net price is due
at the time of delivery.
The amounts listed under ―Operating Lease Obligations‖ reflect the Company‘s obligations under its
aircraft operating lease arrangements.
Obligations Due by Period
Contractual Obligations
Total
Less than 1
year
1-2 years
2-5 years
After 5 years
(in millions of euro)
Long-term Debt (a) ..............................
2,819.2
317.4
327.7
964.1
1,210.0
Finance Lease Obligations ...................
806.0
51.0
53.4
230.0
471.6
Purchase Obligations............................
571.8
571.8
—
—
—
Operating Lease Obligations ...............
605.9
117.0
49.5
278.5
160.9
Future interest payments (b)……….....
378.4
86.1
73.8
144.6
73.9
Total Contractual Obligations ..............
5,181.3
1,143.3
504.4
1,617.2
1,916.4
(a) For additional information on Ryanair‘s long-term debt obligations, see Note 11 to the consolidated financial statements
included in Item 18.
(b) In determining an appropriate methodology to estimate future interest payments we have applied either the applicable fixed rate
or currently applicable variable rate where appropriate. These interest rates are subject to change and may be higher or lower than
noted in the table above.