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63
QANTAS ANNUAL REPORT 2013
Reconciliation of Underlying to Statutory PBT June
2013
June
2012 Change
%
Change
Underlying PBT $M 192 95 97 >100
Items not included in Underlying PBT
– AASB 139 mark-to-market movements relating to other
reporting periods $M 32 (46) 78 >100
Items not included in Underlying PBT
– Net impairment of property, plant and equipment $M (86) (147) 61 41
– Redundancies and restructuring $M (118) (203) 85 42
– Net impairment of investments $M 2 (19) 21 >100
– Impairment of goodwill and other intangible assets $M (24) (18) (6) (33)
– Write down of inventory $M (4) (13) 9 69
– Net prot on disposal of investment $M 30 – 30 100
– Other $M (7) 2 (9) >(100)
Total items not included in Underlying PBT $M (175) (444) 269 61
Statutory PBT $M 17 (349) 366 >100
AASB 139 mark-to-market movements relating to other reporting periods
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 139 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.
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.
Other items not included in Underlying PBT
Items which are identied by Management and reported to the chief operating decision-making bodies as not representing
the underlying performance of the business are not included in Underlying PBT. The determination of these items is made
afterconsideration of their nature and materiality and is applied consistently from period to period.
Items not included in Underlying PBT primarily result from major transformational/restructuring initiatives, transactions involving
investments and impairments of assets outside the ordinary course of business.
Items not included in Underlying PBT in the 2012/2013 year were driven by the Qantas transformation. Costs include aircraft
impairment due to early retirement following strategic network changes, further consolidation of engineering and catering
facilities,the integration of Australian air Express offset by the gain on sale of the StarTrack joint venture in October 2012.