Ryanair 2016 Annual Report Download - page 178

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has been classified within current assets (2015: current liabilities; 2014: current assets), specifically derivative
assets/liabilities falling due within one year (see Note 5 to the consolidated financial statements).
The following table gives details of the notional amounts of the Company’s currency forward contracts as at
March 31, 2016, 2015 and 2014:
March 31, 2016
March 31, 2015
March 31, 2014
euro
euro
euro
Currency forward contracts
U.S.$
equiv.
U.S.$
equiv.
U.S.$
equiv.
$M
€M
$M
€M
$M
€M
U.S. dollar currency forward contracts
- for fuel and other purchases
3,931.9
3,383.1
4,910.3
3,881.5
3,216.4
2,385.9
- for aircraft purchases
2,770.3
2,160.3
4,085.3
3,121.9
919.3
683.2
6,702.2
5,543.4
8,995.6
7,003.4
4,135.7
3,069.1
March 31, 2016
March 31, 2015
March 31, 2014
euro
euro
euro
Currency forward contracts
GBP
equiv.
GBP
equiv.
GBP
equiv.
£M
€M
£M
€M
£M
€M
U.K pounds sterling currency forward contracts
—
—
232.0
293.4
22.5
27.4
—
—
232.0
293.4
22.5
27.4
(f) Credit risk
The Company holds significant cash balances, which are classified as either cash and cash equivalents or financial
assets >3 months. These deposits and other financial instruments (principally certain derivatives and loans as identified
above) give rise to credit risk on amounts due from counterparties. Credit risk is managed by limiting the aggregate amount
and duration of exposure to any one counterparty through regular review of counterparties’ market-based ratings, Tier 1
capital level and credit default swap rates and by taking into account bank counterparties’ systemic importance to the
financial systems of their home countries. The Company typically enters into deposits and derivative contracts with parties
that have a long term Standard and Poors “A” category rating or equivalent credit rating. The maximum exposure arising
in the event of default on the part of the counterparty is the carrying value of the relevant financial instrument. The
Company is authorised to place funds on deposit for periods up to 3 years. The Board of Directors monitors the return on
capital as well as the level of dividends to ordinary shareholders on an ongoing basis.
The Company’s revenues derive principally from airline travel on scheduled services, internet income and in-
flight and related sales. Revenue is primarily derived from European routes. No individual customer accounts for a
significant portion of total revenue.
At March 31, 2016, €0.6 million (2015: €1.1 million; 2014: €1.4 million) of our total accounts receivable balance
were past due, of which €0.1 million (2015: €0.1 million; 2014: €0.1 million) was impaired and provided for and €0.5
million (2015: €1.0 million; 2014: €1.3 million) was past due but not impaired. See Note 8 to the consolidated financial
statements.
(g) Liquidity and capital management
The Company’s cash and liquid resources comprise cash and cash equivalents, short-term investments and
restricted cash. The Company defines the capital that it manages as the Company’s long-term debt and equity. The
Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
maintain sufficient financial resources to mitigate against risks and unforeseen events.
The Company finances its working capital requirements through a combination of cash generated from operations,
bank loans and debt capital market issuances for general corporate purposes including the acquisition of aircraft. The
Company had cash and liquid resources at March 31, 2016 of €4,334.5 million (2015: €4,795.9 million; 2014: €3,241.7