Qantas 2012 Annual Report Download - page 136

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FOR THE YEAR ENDED 30 JUNE 2012
Notes to the Financial Statements continued
D CONTINGENT LIABILITIES
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
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, Qantas 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, Qantas may be required to make payments 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.
E PARENT ENTITY GUARANTEES IN RESPECT OF DEBTS OF ITS SUBSIDIARIES
The parent entity has entered into a Deed of Cross Guarantee with the effect that the Company guarantees debts in respect of
its subsidiaries. Further details of the Deed of Cross Guarantee and the subsidiaries subject to the Deed are disclosed in Note 33.
F INTERESTBEARING LIABILITIES
The parent entity has total interest-bearing liabilities of $8,539 million (2011: $7,959 million) of which $4,338 million (2011: $3,970 million)
represents lease and hire purchase liabilities payable to controlled entities. Of the $4,200 million (2011: $3,989 million) payable to other
parties, $2,100 million (2010: $1,979 million) represents secured bank loans and lease liabilities with the remaining balance representing
unsecured loans and deferred lease benefits.
36. Parent Entity Disclosures for Qantas Airways Limited (Qantas) continued
QANTAS ANNUAL REPORT 2012134