Qantas 2010 Annual Report Download - page 77

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75 ANNUAL REPORT 2010
for the year ended 30 June 2010
Notes to the Financial Statements continued
Qantas Group
2010
$M
2009
$M
CURRENT
Dividends 55
Employee bene ts
—Annual leave 317 338
—Long service leave 40 40
—Redundancies and restructuring 540
Onerous contracts 34
Make good on leased assets 18 –
Insurance, legal and other 60 80
Total current provisions 448 507
NON-CURRENT
Employee bene ts
—Long service leave 311 323
Onerous contracts 69
Make good on leased assets 100 96
Insurance, legal and other 143 105
Total non-current provisions 560 533
Reconciliations of the carrying amounts of each class of provision, except for employee bene ts, are set out below:
Qantas Group
2010
$M
Opening
Balance
Provisions
Made
Acquisition
of
Controlled
Entities
Provisions
Utilised
Unwind of
Discount Other1
Closing
Balance Current
Non-
Current Total
Reconciliations
Dividends 5 4 – (4) – – 55–5
Onerous contracts 13 – – (5) 1 – 9369
Make good on leased assets 96 41 – (21) 4 (2) 118 18 100 118
Insurance, legal and other 185 45 – (40) 6 7 203 60 143 203
Total 299 90 – (70) 11 5 335 86 249 335
2009
$M
Reconciliations
Dividends 5 444 10 (218) – (236) 55–5
Onerous contracts 7 13 – (7) – – 13 4913
Make good on leased assets 42 38 14 – 2 – 96 –9696
Insurance, legal and other 166 50 – (32) 5 (4) 185 80 105 185
Total 220 545 24 (257) 7 (240) 299 89 210 299
1. Other includes dividends settled in shares under the Dividend Reinvestment Plan, foreign exchange movements and transfers from other balance sheet accounts.
NATURE AND PURPOSE OF PROVISIONS
Onerous Contracts
An onerous contract is a contract in which the unavoidable cost of meeting the obligations under the contract exceeds the economic bene t
expected to be received. The Qantas Group has raised this provision in respect of operating leases on premises.
Make Good on Leased Assets
The Qantas Group has leases that require the asset to be returned to the lessor in a certain condition. A provision has been raised for the present
value of the future expected cost at lease expiry.
Insurance, Legal and Other
The Qantas Group self-insures for risks associated with workers compensation. An outstanding claim is recognised when an incident occurs that may
give rise to a claim and is measured at the present value of the cost that the entity expects to incur in settling the claim. Legal provisions include
estimates of the likely penalties to be incurred in relation to investigations into alleged price  xing in the air cargo market.
22. Provisions