Annual report and accounts 2016

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128 Notes to the consolidated financial statements continued 17 Investments a Investments in subsidiaries The Group’s principal subsidiaries at December 31, 2016 are listed in the Group investments section. All subsidiary undertakings are included in the consolidation. There have been no significant changes in ownership interests of subsidiaries during the year. The total non-controlling interest at December 31, 2016 is €308 million which largely comprises €300 million of 6.75 per cent fixed coupon euro preferred securities issued by British Airways Finance (Jersey) L.P. (note 31). British Airways Employee Benefit Trustee (Jersey) Limited, a wholly-owned subsidiary of British Airways, governs the British Airways Plc Employee Share Ownership Trust (the Trust). The Trust is not a legal subsidiary of IAG; however, it is consolidated within the Group results. b Investments in associates and joint ventures The share of assets, liabilities, revenue and profit of the Group’s associates and joint ventures, which are included in the Group’s financial statements, are as follows: € million 2016 2015 Total assets 88 100 Total liabilities (61) (64) Revenue 52 75 Profit for the year 6 6 The detail of the movement in Investment in associates and joint ventures is shown as follows: € million 2016 2015 At beginning of year 41 27 Share of retained profits 6 6 Acquired through Business combination – 17 Disposals – (1) Reclassification 1 (15) – Exchange movements – 1 Dividends received (3) (9) 29 41 1 During the year the Group’s 33.33 per cent equity interest in the share capital of Propius Holdings Limited was classified as held for sale. At December 31, 2016 there are no restrictions on the ability of associates or joint ventures to transfer funds to the parent and there are no related contingent liabilities. At December 31, 2016 the investment in Handling Guinea Ecuatorial, S.A. exceeded 50 per cent ownership by the Group (51 per cent) and is treated as an associate as the local partner controls its activities. 18 Available-for-sale financial assets Available-for-sale financial assets include the following: € million 2016 2015 Listed securities Comair Limited 15 9 Unlisted securities 58 65 73 74 The net gain relating to available-for-sale financial assets was €4 million (2015: €5 million). INTERNATIONAL AIRLINES GROUP Annual Report and Accounts 2016
129 19 Trade and other receivables € million 2016 2015 Amounts falling due within one year Trade receivables 1,469 1,280 Provision for doubtful receivables (64) (84) Net trade receivables 1,405 1,196 Prepayments and accrued income 717 925 Other non-trade debtors 182 310 2,304 2,431 Amounts falling due after one year Prepayments and accrued income 313 173 Other interest-bearing deposits (greater than one year) 114 104 Other non-trade debtors 72 88 499 365 Movements in the provision for doubtful trade receivables were as follows: € million 2016 2015 At beginning of year 84 97 Provision for doubtful receivables 7 8 Unused amounts reversed (1) (3) Receivables written off during the year (23) (20) Exchange movements (3) 2 64 84 The ageing analysis of net trade receivables is as follows: € million 2016 2015 Neither past due date nor impaired 1,017 986 < 30 days 235 117 30 – 60 days 96 77 > 60 days 57 16 Net trade receivables 1,405 1,196 Trade receivables are generally non-interest-bearing and on 30 days terms (2015: 30 days). 20 Cash, cash equivalents and other current interest-bearing deposits € million 2016 2015 Cash at bank and in hand 2,021 2,230 Short-term deposits falling due within three months 1,316 679 Cash and cash equivalents 3,337 2,909 Other current interest-bearing deposits maturing after three months 3,091 2,947 Cash, cash equivalents and other interest-bearing deposits 6,428 5,856 Strategic Report Corporate Governance Financial Statements Additional Information Cash at bank is primarily held in AAA money market funds and bank deposits. Short-term deposits are made for periods up to three months depending on the cash requirements of the Group and earn interest based on the floating deposit rates. At December 31, 2016 the Group had no outstanding bank overdrafts (2015: nil). Other current interest-bearing deposits are made for periods in excess of three months with maturity typically within 12 months and earn interest based on the market rates available at the time the deposit was made. At December 31, 2016 Aer Lingus held €47 million of restricted cash (2015: €49 million) within interest-bearing deposits maturing after more than three months to be used for employee related obligations. 21 Trade and other payables € million 2016 2015 Trade creditors 1,776 2,043 Other creditors 910 1,031 Other taxation and social security 218 186 Accruals and deferred income 401 543 3,305 3,803 www.iairgroup.com
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INTERNATIONAL AIRLINES GROUP The be
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Strategic report “2016 was a chal
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3 Chairman’s letter A firm focus
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5 Q A And, importantly, we have to
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7 IAG combines the leading airlines
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9 Operating highlights British Airw
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11 Business model and strategy Maxi
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13 4 5 6 Grow share of Europeto-Afr
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15 The performance indicators prese
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17 IT This year significant work ha
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19 and additional summer aircraft a
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21 This is why we have recently lau
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23 Aer Lingus Making the most of ou
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25 IAG Cargo Resilient performance
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27 Risk management and principal ri
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29 Risk Potential impact Management
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31 Risk Potential impact Management
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33 Financial overview A significant
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35 However, continued weakness in t
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37 Exchange impact before exception
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39 By supplier cost category: Handl
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41 Capacity 21% 11% 8% 60% Operatin
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43 Cash flow € million 2016 2015
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45 Sustainability Committed to our
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47 UN Sustainable Development Goals
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49 Aspect and link to SDGs Noise Wa
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51 Air quality - electric tug trial
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“2016 has really tested the Group
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55 I think we can be very proud tha
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57 James Lawrence Non-Executive Dir
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59 The Group operating companies Av
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61 The Board Secretary is Álvaro L
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63 Induction programme New director
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65 Other statutory information Dire
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67 The significant shareholders of
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69 Report of the Audit and Complian
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71 ICFR, which is a Spanish Corpora
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73 The Committee’s responsibiliti
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75 Report of the Safety Committee D
Page 79 and 80: 77 Despite a growth in share price
Page 81 and 82: 79 The table below summarises the m
Page 83 and 84: 81 Malus and Clawback Provisions Th
Page 85 and 86: 83 Service contracts and exit payme
Page 87 and 88: 85 Annual Remuneration Report Commi
Page 89 and 90: 87 Additional explanations in respe
Page 91 and 92: 89 IAG PSP Award 2014 The IAG PSP a
Page 93 and 94: 91 Statement of Voting The table be
Page 95 and 96: 93 IAG’s total shareholder return
Page 97 and 98: 95 The second performance condition
Page 99 and 100: 97 Incentive Award Deferral Plan Th
Page 101 and 102: Strategic Financial Statements Repo
Page 103 and 104: 101 Consolidated statement of other
Page 105 and 106: 103 Consolidated cash flow statemen
Page 107 and 108: 105 Consolidated statement of chang
Page 109 and 110: 107 the Income statement. All other
Page 111 and 112: 109 b Other interest-bearing deposi
Page 113 and 114: 111 Employee leaving indemnities an
Page 115 and 116: 113 IAG has initiated a project to
Page 117 and 118: 115 For the year to December 31, 20
Page 119 and 120: 117 7 Auditors’ remuneration The
Page 121 and 122: 119 For the year to December 31, 20
Page 123 and 124: 121 c Reconciliation of the total t
Page 125 and 126: 123 13 Property, plant and equipmen
Page 127 and 128: 125 16 Intangible assets and impair
Page 129: 127 Basis for calculating recoverab
Page 133 and 134: 131 2 Floating rate euro mortgage l
Page 135 and 136: 133 depending on whether the employ
Page 137 and 138: 135 At December 31, 2016 the Group
Page 139 and 140: 137 27 Financial instruments a Fina
Page 141 and 142: 139 The carrying amounts and fair v
Page 143 and 144: 141 December 31, 2015 Financial ins
Page 145 and 146: 143 31 Other reserves and non-contr
Page 147 and 148: 145 Defined benefit schemes i. APS
Page 149 and 150: 147 d Fair value of scheme assets A
Page 151 and 152: 149 e Present value of scheme liabi
Page 153 and 154: 151 33 Contingent liabilities and g
Page 155 and 156: Spanish corporate governance report
Page 157 and 158: 155 Indicate the most significant m
Page 159 and 160: 157 Explain any significant changes
Page 161 and 162: 159 B. SHAREHOLDERS’ MEETING B.1
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Page 167 and 168: 165 When reviewing board appointmen
Page 169 and 170: 167 C.1.10 Indicate what powers, if
Page 171 and 172: 169 Selection of directors In ident
Page 173 and 174: 171 C.1.20 ter List any business re
Page 175 and 176: 173 C.1.31 Indicate whether the con
Page 177 and 178: 175 C.1.36 No Outgoing auditor Indi
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179 C.2 Board committees C.2.1 Give
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181 f. To establish the appropriate
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183 F. Other responsibilities: a. T
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185 c) Steps taken during the year:
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187 C.2.2 b) Functions The main fun
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189 D.4 List any relevant transacti
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191 E.2 Identify the bodies respons
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193 Main risk Government interventi
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195 Audit and Compliance Committee
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197 The financial risk assessment i
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199 F.3.2 Internal control policies
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201 F.4.2 Mechanisms in standard fo
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203 6. Listed companies drawing up
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205 21. The board of directors shou
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207 37. When an executive committee
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209 52. The terms of reference of s
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211 IAG Remuneration Policy complie
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213 Director Enrique Dupuy de Lôme
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215 Strategic Report Corporate Gove
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217 Name and address Principal acti
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219 Associates Name and address Han
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221 Strategic Report Corporate Gove
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223 Operating margin Overall load f
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225 In 2015, the definition of inve
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227 Sustainability indicators Indic
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Shareholder information Registered
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Annual report and accounts 2016

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