2004-05 Annual Report - Australia Post

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Notes to and forming part of the financial statements
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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2005
35. LEASES
(i) Operating leases
The corporation leases a total of 760 properties. These are under operating leases with various occupancy terms that
are due to expire in the next one to ten years. The leased property portfolio comprises 33 commercial, 218 industrial,
19 residential and 490 retail sites. Leases generally provide the corporation with a right of renewal, at which time
the commercial terms are renegotiated. Lease payments generally comprise a base amount plus an incremental
contingent rental based on movements in the Consumer Price Index and reviews to market-based levels.
The corporation has a small portion of its passenger vehicle fleet under operating leases (generally over three
years) and has some minor items of plant and equipment under operating leases.
Minimum lease payments 85.4 83.8
Contingent rentals 6.9 7.0
Operating lease rentals (refer note 3) 92.3 90.8
(ii) Finance lease receivable
The corporation has a finance lease receivable relating to the disposal in 1996–97 of the Sydney GPO heritage
site under a 99 year lease. The agreement includes a seven-year rent-free period to the lessee, followed by a
guaranteed minimum rental.
Reconciliation of minimum lease payments to lease receivable:
Gross minimum finance lease rentals receivable 588.3 594.8
Lease finance revenue not yet recognised (484.7) (491.2)
Finance lease receivable 103.6 103.6
Minimum finance lease rentals receivable:
(a) within one year 6.5 6.5
(b) from one year to five years 26.0 26.0
(c) over five years 555.8 562.3
Total 588.3 594.8
The lease commitments receivable at year-end equal the minimum lease payments, as there are no material contingent
payments or unguaranteed residual value relating to this lease agreement.
(iii) Finance lease payable
The group has certain hire purchase and finance lease agreements. The present value of these minimum lease
payments is $1.8m. These payments will be made on a period between 0 and 5 years.
36. NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of cash
For the purposes of the Statement of Cash Flows, cash includes cash on hand and in banks, promissory notes
and floating rate notes. Cash on hand at the end of the financial year as shown in the Statement of Cash Flows
is reconciled to the related items in the Statement of Financial Position as follows:
2005
$m
2005
$m
2004
$m
Consolidated Corporation
Cash on hand 361.0 331.8 358.1 328.7
Promissory notes 202.7 89.1 202.7 89.1
Floating-rate notes 5.0 35.0 5.0 35.0
Total cash 568.7 455.9 565.8 452.8
2004
$m
2005
$m
2004
$m