Singapore Airlines 2014 Annual Report Download - page 159

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157
ANNUAL REPORT FY2013/14
19฀ Long-Term฀Liabilities฀(in฀$฀million)฀(continued)
Finance lease commitments (continued)
The net carrying amounts approximate the fair value as the interest rate approximates the market rate.
SIA Cargo continues to remain the primary obligor under the lease agreements, and as such, there are unpaid lease
commitments of $79.1 million (2013: $77.9 million) as at 31 March 2014. Out of this, $66.4 million (2013: $61.9 million)
are covered by funds placed with financial institutions under defeasance to provide for payments due at time of exercise
of purchase option at the end of the 15th year of the lease period. The funds placed with financial institutions are expected
to generate interest in order to meet the obligation at time of maturity. These arrangements have not been included in the
financial statements.
Future minimum lease payments under these finance leases are as follows:
The Group
31 March
2014 2013
Minimum Present Minimum Present
Lease Value of Lease Value of
Payments Payments Payments Payments
Not later than one year 57.0 52.5 72.4 67.8
Later than one year but not later than five years 96.9 90.7 151.3 140.6
Total minimum lease payments 153.9 143.2 223.7 208.4
Amounts representing interest (10.7) - (15.3) -
Present value of minimum lease payments 143.2 143.2 208.4 208.4
20 Provisions (in $ million)
Included are provisions for warranty claims, upgrade costs, return costs for leased aircraft and lease end liability. It is
expected that the return costs will be incurred by the end of the lease terms.
An analysis of the provisions is as follows:
The Group The Company
31 March 31 March
2014 2013 2014 2013
Balance at 1 April 493.6 353.9 441.3 294.2
Provision during the year 183.7 181.8 170.7 172.8
Provision utilised during the year (8.2) (28.5) (7.8) (12.9)
Provision written back during the year (6.1) (13.6) (4.4) (12.8)
Balance at 31 March 663.0 493.6 599.8 441.3
Current 75.7 72.3 44.0 65.2
Non-current 587.3 421.3 555.8 376.1
663.0 493.6 599.8 441.3