Qantas 2013 Annual Report Download - page 133

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131
QANTAS ANNUAL REPORT 2013
22. Provisions
Qantas Group
2013
$M
2012
$M
CURRENT
Employee benets
– Annual leave 315 319
– Long service leave 53 49
– Redundancies and other employee benets 85 168
Onerous contracts 29 7
Make good on leased assets 10 2
Insurance, legal and other 66 25
Total current provisions 558 570
NONCURRENT
Employee benets
– Long service leave 336 371
Onerous contracts 25 7
Make good on leased assets 120 183
Insurance, legal and other 237 176
Total non-current provisions 718 737
Reconciliations of the carrying amounts of each class of provision, except for employee benets, are set out below:
Qantas Group
2013
$M Opening
Balance
Provisions
Made
Provisions
Utilised
Unwind of
Discount Other1
Closing
Balance Current
Non-
current Total
Reconciliations
Onerous contracts 14 10(28) 15754292554
Make good on leased assets 185 4 (63) 4 – 130 10 120 130
Insurance, legal and other 201 71 (54) 8 77 303 66 237 303
Total 400 85 (145) 13 134 487 105 382 487
2012
$M
Reconciliations
Onerous contracts 714(10)– 314 7 714
Make good on leased assets 142 52 (13) 3 1 185 2 183 185
Insurance, legal and other 216 9 (37) 8 5 201 25 176 201
Total 365 75 (60) 11 9 400 34 366 400
1 Other includes transfers from other balance sheet accounts and acquisitions and disposals of controlled entities.
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
or other onerous contracts.
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.