Qantas 2016 Annual Report Download - page 61

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Notes to the Financial Statements continued
For the year ended 30 June 2016
1 UNDERLYING PROFIT BEFORE TAX, OPERATING SEGMENTS AND RETURN ON INVESTED CAPITAL CONTINUED
ii. Other Items Not Included in Underlying PBT
Items which are identified 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 revenues or expenses relating to business activities in other reporting
periods, major transformational/restructuring initiatives, transactions involving investments, impairments of assets and other
transactions outside the ordinary course of business.
Transformation costs relating to the Qantas Transformation Program of $183 million were incurred during the period.
The net gain on disposal of property, plant and equipment of $201 million relates to the disposal of Sydney Airport Terminal Three and
related assets to Sydney Airport Corporation Limited announced on 18 August 2015.
The wage freeze employee bonus of $91 million relates to the Enterprise Bargaining Agreements (EBAs) employees that were open for
negotiation or had agreed to the 18 month pay freeze as announced on 20 August 2015.
(B) OPERATING SEGMENTS
The Qantas Group comprises the following operating segments:
Passenger Flying Businesses
Jetstar
Group
Qantas
Domestic
Qantas
International
QANTAS GROUP
Air Cargo and
Express Freight
Business
Qantas
Freight
Customer Loyalty
Recognition
Programs
Qantas
Loyalty
Centralised
Management and
Governance
Corporate
i. Underlying EBIT
The primary reporting measure of the Qantas Domestic, Qantas International, Qantas Freight, Jetstar Group and Qantas Loyalty
operating segments is Underlying EBIT. The primary reporting measure of the Corporate segment is Underlying PBT as net finance
costs are managed centrally and are not allocated to Qantas Domestic, Qantas International, Qantas Freight, Jetstar Group and
Qantas Loyalty operating segments.
Underlying EBIT is calculated using a consistent methodology as outlined above for Underlying PBT but excluding the impact
of statutory net finance costs and ineffective and non-designated derivatives relating to other reporting periods affecting
netfinance costs.
59
QANTAS ANNUAL REPORT 2016