annual report - Harvey Norman Company Reports & Announcements

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3. Expenses and Losses
76
In arriving at profit before income tax, the following items were taken into account:
Tactical support:
C O N S O L I D A T E D
2012 2011
$000 $000
Tactical support provided to franchisees 124,186 60,372
Depreciation, amortisation and impairment:
Depreciation of:
- Buildings 4,749 4,097
- Plant and equipment 73,492 77,416
Amortisation of:
- Leased plant and equipment 39 81
- Computer software 9,782 7,773
Impairment of (included in administrative and other expenses line
in the Income Statement):
- Plant and equipment – Ireland 509 968
- Capitalised IT projects 2,356 1,093
- Other assets 139 10
Total depreciation, amortisation and impairment
Finance costs:
Interest paid or payable:
91,066
91,438
- Loans from directors and director-related entities 2,672 2,835
- Bank interest paid to financial institutions 43,017 37,694
- Other 3,766 2,455
Total finance costs
Employee benefits expense:
49,455
42,984
- Wages and salaries 200,092 228,862
- Workers‟ compensation costs 786 1,539
- Superannuation contributions expense 10,659 13,231
- Payroll tax expense 8,977 10,934
- Share-based payment expense 334 419
- Other employee benefit expense 4,660 6,776
Total employee benefits expense
225,508
261,761
Property revaluation decrements:
- Net revaluation decrement for Australian investment properties 25,263 -
- Share of joint venture property revaluations (Note 36) 2,505 -
Total property revaluation decrements
27,768
Other expense items:
- Net bad debts – provided for or written off 1,438 1,999
- Net charge to provision for doubtful debts 1,324 (2,533)
- Net loss on disposal of plant and equipment 5,491 2,344
- Minimum lease payments 157,707 161,009
- Provision for obsolescence of inventories (1,901) (336)
- Provision for employee benefits (5,672) 5,494
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