Ryanair 2016 Annual Report Download - page 161

161
Hangar and
Plant and
Fixtures and
Motor
Aircraft
Buildings
Equipment
Fittings
Vehicles
Total
€M
€M
€M
€M
€M
€M
Year ended March 31, 2014
Cost
At March 31, 2013
6,409.6
58.8
23.2
33.2
2.3
6,527.1
Additions in year
490.5
8.5
3.4
3.3
0.1
505.8
Disposals in year
(84.4)
—
—
—
—
(84.4)
At March 31, 2014
6,815.7
67.3
26.6
36.5
2.4
6,948.5
Depreciation
At March 31, 2013
1,555.1
15.7
19.3
28.6
2.1
1,620.8
Charge for year
343.9
2.6
2.2
3.0
0.1
351.8
Eliminated on disposal
(84.4)
—
—
—
—
(84.4)
At March 31, 2014
1,814.6
18.3
21.5
31.6
2.2
1,888.2
Net book value
At March 31, 2014
5,001.1
49.0
5.1
4.9
0.2
5,060.3
At March 31, 2016, aircraft with a net book value of €3,570.9 million (2015: €3,713.9 million; 2014: €3,912.1
million) were mortgaged to lenders as security for loans. Under the security arrangements for the Company’s new Boeing
737-800 “next generation” aircraft, the Company does not hold legal title to those aircraft while these loan amounts remain
outstanding.
At March 31, 2016, the cost and net book value of aircraft included advance payments on aircraft of €687.1
million (2015: €631.1 million; 2014: €282.1 million). Such amounts, where present, are not depreciated. The cost and net
book value also includes capitalised aircraft maintenance, aircraft simulators and the stock of rotable spare parts.
The net book value of assets held under finance leases at March 31, 2016, 2015 and 2014 was €452.7 million,
€535.0 million, and €559.0 million respectively.
During the year, €9.4 million (2015: €9.8 million; 2014: Nil) of borrowing costs were capitalized as part of
property, plant and equipment. Borrowing costs have been capitalized at a rate of 1.482% (2015: 1.836%: 2014; Nil).
3. Intangible assets
At March 31,
2016
2015
2014
€M
€M
€M
Landing rights
46.8
46.8
46.8
Landing slots were acquired with the acquisition of Buzz Stansted Limited in April 2003. As these landing slots
have no expiry date and are expected to be used in perpetuity, they are considered to be of indefinite life and accordingly
are not amortised. The Company also considers that there has been no impairment of the value of these rights to date. The
recoverable amount of these rights has been determined on a value-in-use basis, using discounted cash-flow projections
for a twenty-year period for each route that has an individual landing right. The calculation of value-in-use is most sensitive
to the operating margin and discount rate assumptions. Operating margins are based on the existing margins generated
from these routes and adjusted for any known trading conditions. The trading environment is subject to both regulatory
and competitive pressures that can have a material effect on the operating performance of the business. Foreseeable events,
however, are unlikely to result in a change of projections of a significant nature so as to result in the landing rights’ carrying
amounts exceeding their recoverable amounts. These projections have been discounted based on the estimated discount
rate applicable to the asset of 4.0% for 2016, 4.0% for 2015 and 5.3% for 2014.