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63 ANNUAL REPORT 2011
for the year ended 30 June 2011
Notes to the Financial Statements continued
2. Underlying PBT and Operating Segments continued

$M Qantas Jetstar
Qantas
Frequent
Flyer
Qantas
Freight
Jetset
Travelworld
Group
Corporate/
Unallocated Eliminations
Consolidated
Underlying
REVENUE AND OTHER INCOME
External segment revenue , , , ,    ,
Intersegment revenue ,     (,) –
Total segment revenue
and other income , , , ,   (,) ,
Share of net (loss)/prot
of associates and jointly
controlled entities () () – –––()
EBITDAR ,     () ,
Non-cancellable operating
lease rentals () () –() – –  ()
Depreciation and amortisation(,) () () () () () () (,)
Underlying EBIT      () 
Underlying net nance costs ()
Underlying PBT 
. Depreciation and amortisation includes $ million (Qantas $ million and Corporate/Unallocated $ million) representing the six month impact of the change in residual value estimates
for passenger aircraft as described in Note (C).
D DESCRIPTION OF UNDERLYING PBT AND UNDERLYING EBIT AND RECONCILIATION TO STATUTORY EBIT
Underlying PBT is a non-statutory measure, which excludes certain impacts of AASB : Financial Instruments: Recognition and Measurement
(AASB ) and non-recurring items that Management consider to be outside the ordinary course of business operations. Qantas excludes
these items to provide more useful information that more accurately reects the underlying performance of the Group.
All derivative transactions undertaken by the Qantas Group represent economic hedges of underlying risk and exposures. The Qantas Group
does not enter into speculative derivative transactions. Notwithstanding this, AASB  requires certain mark-to-market movements in derivatives
which are classied as ‘ineffective’ to be recognised immediately in the Consolidated Income Statement. The recognition of derivative valuation
movements in reporting periods which differ from the designated transaction causes volatility in statutory prot that does not reect the hedging
nature of these derivatives.
Underlying PBT reports all hedge derivative gains and losses in the same reporting period as the underlying transaction by adjusting the
reporting period’s statutory prot for derivative mark-to-market movements that relate to underlying exposures in other reporting periods.
Underlying PBT is calculated as follows:
— Derivative mark-to-market movements recognised in the current reporting period’s statutory prot that are associated with current year
exposures remain included in Underlying PBT
— Derivative mark-to-market movements recognised in the current reporting period’s statutory prot that are associated with underlying
exposures which will occur in future reporting periods are excluded from Underlying PBT
— Derivative mark-to-market movements recognised in the current reporting periods’ statutory prot that are associated with capital expenditure
are excluded from Underlying PBT and subsequently included in Underlying PBT as an implied adjustment to depreciation expense for the
related assets commencing when the assets are available for use
— Derivative mark-to-market movements recognised in previous reporting period’s statutory prot that are associated with underlying
exposures which occurred in the current year are included in Underlying PBT
— Underlying PBT excludes the impact of items which management consider to be outside the ordinary course of business operations,
and have therefore been identied as non-recurring
All derivative mark-to-market movements which have been excluded from Underlying PBT will be recognised through Underlying PBT in future
periods when the underlying transaction occurs.
Underlying EBIT is calculated by adjusting Underlying PBT for statutory net nance costs and the impact on net nance costs of ineffective
and non-designated derivatives relating to other reporting periods using a consistent methodology as outlined above.