annual report 2009 - Aer Lingus

76 Financial Statements Aer Lingus Group Plc – Annual Report 2009Notes to the Consolidated Financial Statements [continued]17 Loans and receivables [continued]Financial assets with a fair value of €100.7m were reclassified during 2008, with the fair value at that date becoming the assets’new carrying value for amortised cost.These assets are all denominated in US dollars. These unlisted securities are mainly held in order to meet certain finance leaseobligations denominated in the same currency and with the same maturity. Cash flows from these securities, including the interestreceivable thereon, are expected to be sufficient to meet the associated lease obligations.The maximum exposure to credit risk at the reporting dates is the carrying amount of the debt securities classified as loans andreceivables. None of the debt securities are either past due or expired.As at 31 December 2009 the fair value and carrying value of the financial assets reclassified were €71.3m (31 December 2008: €110.4m)and €77.3m (31 December 2008: €115.1m) respectively. If the financial assets had not been reclassified a fair value loss of €1.8m(2008: €6.3m) would have been recognised in equity. The fair values of unlisted securities are based on cash flows discounted using arate based on the market interest rate and the risk premium appropriate to the unlisted securities. €2.1m (2008: €1.6m) was amortisedfrom the available-for-sale reserve to the income statement in the period.The effective interest rates of the financial assets reclassified into loans and receivable at the date of reclassification were between2.8% and 4.5%.The estimated undiscounted cash flows that the Group expected to recover from the reclassified financial assets as at the dateof reclassification was:1 yearor lessBetween1 and 2 yearsBetween2 and 5 yearsOver5 years€’000 €’000 €’000 €’000Unlisted debt securities: 39,917 5,663 12,703 77,10018 Derivative financial instruments2009 2009 2008 2008€’000 €’000 €’000 €’000Assets Liabilities Assets LiabilitiesCross-currency interest rate swap – 7,303 – 6,285Forward foreign exchange contracts 19,831 – 70,319 –Forward fuel price contracts 4,717 11,873 – 142,995Total 24,548 19,176 70,319 149,280Less non-current portion:Cross-currency interest rate swap – 7,303 – 6,285Forward foreign exchange contracts 5,348 – 39,447 –Forward fuel price contracts 1,501 – – 28,789Total non-current portion 6,849 7,303 39,447 35,074Current portion 17,699 11,873 30,872 114,206