Qantas 2014 Annual Report Download - page 77

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75
QANTAS ANNUAL REPORT 2014
(B) OPERATING SEGMENTS
The Qantas Group comprises the following operating segments:
Qantas Brands
Qantas Domestic, Qantas International, Qantas Loyalty and Qantas Freight operating segments are collectively referred to as
Qantas Brands.
To drive business focus, assign accountability and monitor performance, the Qantas Brands operations are managed through four
operating segments. In order to set targets and assess the performance, including accountability of the operating segments (as
measured by Underlying EBIT), Qantas Domestic and Qantas International report depreciation expense for passenger aircraft and
Qantas Freight reports depreciation expense for freighters.
–Qantas Domestic The Australian domestic passenger flying business of Qantas Brands
–Qantas International The International passenger flying business of Qantas Brands
–Qantas Loyalty Operates the Qantas customer loyalty program for Qantas Brands (Qantas Frequent Flyer) as
well as other marketing services, loyalty and recognition programs
–Qantas Freight The air cargo and express freight business of Qantas Brands
Jetstar Group
The Jetstar Group comprises those operations of the Qantas Group which are dependent on the Jetstar fleet and the Jetstar Brand
being the Jetstar passenger flying businesses (including Jetstar Group’s investments in Jetstar branded airlines in Asia).
Corporate/Unallocated
Costs associated with the centralised management and governance of the Qantas Group, together with certain items which are not
allocated to business segments and other businesses of the Qantas Group which are not considered to be significant reportable
segments are reported in the Corporate/Unallocated segment.
(C) ANALYSIS BY OPERATING SEGMENT1
2014
$M
Qantas
Domestic
Qantas
International
Qantas
Loyalty
Qantas
Freight Eliminations
Total Qantas
Brands
Jetstar
Group
Corporate/
Unallocated
2
Eliminations
Consolidated
REVENUE AND OTHER INCOME
External segment
revenue 5,284 4,658 1,192 1,074 (4) 12,204 3,073 81 (6) 15,352
Inter-segment revenue 564 639 115 10 (1,225) 103 149 (65) (187) –
Total segment revenue
and other income 5,848 5,297 1,307 1,084 (1,229) 12,307 3,222 16 (193) 15,352
Share of net (loss)/
profit of investments
accounted for under
the equity method 2 2 – – – 4 (70) – – (66)
Underlying EBITDAR3804 188 293 60 31,348 310 (154) (2) 1,502
Non-cancellable
operating lease
rentals (203) (33) –(5) –(241) (279) – – (520)
Depreciation and
amortisation (571) (652) (7) (31) –(1,261) (147) (14) –(1,422)
Underlying EBIT 30 (497) 286 24 3(154) (116) (168) (2) (440)
Underlying net finance
costs (206) (206)
Underlying PBT (374) (646)
1 Qantas Domestic, Qantas International, Qantas Loyalty, Qantas Freight, Jetstar Group and Corporate/Unallocated are the operating segments of the Qantas Group.
2 Corporate/Unallocated is the only operating segment with Underlying PBT as the primary reporting measure. The primary reporting measure of other operating segments is Underlying EBIT.
3 Underlying EBITDAR represents underlying earnings before income tax expense, depreciation, amortisation, non-cancellable aircraft operating lease rentals and net finance costs.