Annual Report 1999 in PDF - Aer Lingus

AER LINGUS GROUP PLCNotes to the Consolidated Accounts (continued)3. Exceptional Items (continued)(e) The 1997 accounts included the Directors’ estimate of the loss on the Group’s exit from its maintenance activities. Theadditional loss charged in 1999 represents an adjustment to that estimate and is based on the amount estimated by theDirectors to be necessary to state certain maintenance contracts at fair value. The amount provided is the present valueof the excess of the contracted amounts over their fair value. The provision will be released over the life of the contracts(10 years from 01 January, 1999). A credit of e8.7 million to operating profit has arisen in respect of this in 1999, with adiscount charge of e3.6 million included in interest payable. The amount provided of e65.7 million comprises anexceptional charge in 1999 of e56.1 million, together with provisions of e9.6 million made in previous years relating tothe Group’s exit from its maintenance activities.(f)(g)The loss on exit from ground and cargo handling activities comprises the net loss on the disposal of the majority of theGroup’s UK based ground and cargo handling operations.During the year, the Group disposed of 53% of its indirect interest in Equant NV acquired through its membership of theairline telecommunications co-operative, SITA.4. Interest Payable and Similar Charges1999 1998e000e000On bank loans, overdrafts and other loans:- repayable within five years, by instalments 4 9- repayable within five years, not by instalments 2,051 3,469Finance lease interest 18,599 18,805Interest on irredeemable capital 373 461Other interest, principally on loansrepayable after more than five years 3,043 689Finance charge on discounted provision (Note 3(e)) 3,619 -27,689 23,4335. Profit on Ordinary Activities before Taxation1999 1998e000e000Profit on ordinary activities before taxationis stated after charging (crediting):Depreciation of tangible fixed assets- owned 19,154 20,934- held under finance leases 27,825 20,505Operating lease rentals payable- plant and machinery 385 437- aircraft 97,418 96,073- property 9,716 13,055Operating lease rentals receivable (3,804) (3,564)Auditors’ remuneration 189 197Directors’ emoluments- fees 79 79- other emoluments (including pension contributions) 146 208- pensions paid to former directors 93 95Net losses/(gains) on foreign currency borrowings less deposits 9,764 (4,422)In accordance with Section 3 (2) of the Companies (Amendment) Act, 1986, the profit and loss account of the Companyis not presented. The profit of the Company for the year ended 31 December, 1999 amounted to e114 million arisingfrom the reversal of a provision against the book value of shares in subsidiary undertakings which is no longer required.34