Qantas 2012 Annual Report Download - page 116

Download and view the complete annual report

Please find page 116 of the 2012 Qantas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

FOR THE YEAR ENDED 30 JUNE 2012
Notes to the Financial Statements continued
Details of contingent liabilities are set out below. The Directors are of the opinion that provisions are not required with respect to these matters,
as it is not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.
Qantas Group
2012
$M
2011
$M
Performance guarantees and letters of comfort to support operating lease commitments
and other arrangements entered into with other parties
 
General guarantees in the normal course of business  
Contingent liabilities relating to current and threatened litigation
 
AIRCRAFT FINANCING
As part of the financing arrangements for the acquisition of aircraft, the Qantas Group has provided certain guarantees and indemnities
to various lenders and equity participants in leveraged lease transactions. In certain circumstances, including the insolvency of major
international banks and other AAA rated counterparties, the Qantas Group may be required to make payment under these guarantees.
FREIGHT AND PASSENGER THIRD PARTY CLASS ACTIONS
Qantas is a party to a number of third party class actions relating to its freight and passenger divisions. Qantas continues to have
a number of defences to these class actions. Qantas expects the outcome of these class actions will be known over the course
of the next few years.
30. Superannuation
The Qantas Superannuation Plan (QSP) is a hybrid defined benefit/defined contribution fund with 14 separate divisions which commenced
operation in June 1939. In addition to the QSP, there are a number of small offshore defined benefit plans.
The Qantas Group makes contributions to defined benefit superannuation plans that provide defined benefit amounts for employees
upon retirement. Under the plans, employees are entitled to retirement benefits determined, at least in part, by reference to a formula
based on years of membership and salary levels. As at 30 June 2012 the total plan assets include shares in Qantas with a fair value
of $9 million (2011: $18 million).
Qantas Group
2012
$M
2011
$M
CHANGES IN THE PRESENT VALUE OF DEFINED BENEFIT OBLIGATION
Opening defined benefit obligation , ,
Current service cost  
Past service cost – ()
Interest cost  
Actuarial losses/(gains)  ()
Exchange differences on foreign plans ()
Benefits paid () ()
Closing defined benefit obligation , ,
CHANGES IN THE FAIR VALUE OF PLAN ASSETS
Opening fair value of plan assets , ,
Expected return  
Actuarial losses () ()
Exchange differences on foreign plans ()
Contributions by employer  
Contributions by plan participants  
Benefits paid () ()
Closing fair value of plan assets , ,
29. Contingent Liabilities
QANTAS ANNUAL REPORT 2012114