Ryanair 2016 Annual Report Download - page 168

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168
9. Restricted cash
Restricted cash consists of €13.0 million (2015: €6.7 million; 2014: €13.3 million) placed on deposit as collateral
for certain derivative financial instrument arrangements entered into by the Company and also include amounts held in
escrow (which accounts for the majority of the balance).
10. Accrued expenses and other liabilities
At March 31,
2016
2015
2014
€M
€M
€M
Accruals
422.8
417.1
397.8
Taxation
516.0
433.3
308.1
Unearned revenue
1,173.9
1,087.8
855.3
2,112.7
1,938.2
1,561.2
Taxation comprises:
At March 31,
2016
2015
2014
€M
€M
€M
PAYE (payroll taxes)
12.9
9.7
6.7
Other tax (principally air passenger duty in various countries)
503.1
423.6
301.4
516.0
433.3
308.1
11. Financial instruments and financial risk management
The Company utilises financial instruments to reduce exposures to market risks throughout its business.
Borrowings, cash and cash equivalents and liquid investments are used to finance the Company’s operations. Derivative
financial instruments are contractual agreements with a value that reflects price movements in an underlying asset. The
Company uses derivative financial instruments, principally jet fuel derivatives, interest rate swaps, cross-currency interest
rate swaps and forward foreign exchange contracts to manage commodity risks, interest rate risks and currency exposures
and to achieve the desired profile of fixed and variable rate borrowings and leases in appropriate currencies. It is the
Company’s policy that no speculative trading in financial instruments shall take place.
The main risks attaching to the Company’s financial instruments, the Company’s strategy and approach to
managing these risks, and the details of the derivatives employed to hedge against these risks have been disclosed in Note
5 to the consolidated financial statements.