2004-05 Annual Report - Australia Post

Australia Post Annual Report 2004/05 Financial and Statutory Reports
Schedule of commitments and schedule of contingencies
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SCHEDULE OF COMMITMENTS & SCHEDULE OF CONTINGENCIES
AS AT AND FOR THE YEAR ENDED 30 JUNE 2005
SCHEDULE OF COMMITMENTS
2005
$m
Consolidated Corporation
BY TYPE
Capital commitments:
Land and buildings 15.0 6.6 15.0 6.6
Plant and equipment 41.9 31.3 41.2 30.8
Total capital commitments 56.9 37.9 56.2 37.4
Other commitments:
Operating leases 347.6 297.8 208.7 225.4
Other commitments (1) 731.4 618.9 728.3 610.7
Total other commitments 1,079.0 916.7 937.0 836.1
BY MATURITY
Capital commitments due:
Within one year 54.1 37.9 53.4 37.4
From one to five years 2.8 0.0 2.8 0.0
Over five years 0.0 0.0 0.0 0.0
Total capital commitments 56.9 37.9 56.2 37.4
Operating lease commitments due: (2)
Within one year 95.4 79.4 62.1 65.3
From one to five years 193.3 158.5 124.8 114.5
Over five years 58.9 59.9 21.8 45.6
Total operating lease commitments 347.6 297.8 208.7 225.4
Other commitments due:
Within one year 306.6 276.1 303.9 271.0
From one to five years 419.8 337.5 419.4 334.4
Over five years 5.0 5.3 5.0 5.3
Total other commitments 731.4 618.9 728.3 610.7
Notes
1. The majority of these commitments relate to carriage and delivery of letters and parcels by contractors.
2. These commitments are net of sub-lease recoveries.
SCHEDULE OF CONTINGENCIES
Guarantees (1) Finance lease (2)
Claims for
damages or costs (3) Total
2005 2004 2005 2004 2005 2004 2005 2004
$m $m $m $m $m $m $m $m
Consolidated
Balance from previous period 186.2 131.7 222.1 247.8 4.8 7.1 413.1 386.6
New 4.1 25.9 1.6 0.0 6.2 1.4 11.9 27.3
Re-measurement 13.3 30.3 (10.9) (15.1) 0.1 0.1 2.5 15.3
Liabilities crystallised 0.0 0.0 0.0 0.0 (0.5) 0.0 (0.5) 0.0
Obligations expired (1.6) (1.7) (2.9) (10.6) (1.0) (3.8) (5.5) (16.1)
Total contingent liabilities 202.0 186.2 209.9 222.1 9.6 4.8 421.5 413.1
Corporation
Balance from previous period 148.7 119.2 222.1 247.8 4.8 7.1 375.6 374.1
New 0.0 0.0 1.6 0.0 6.2 1.4 7.8 1.4
Re-measurement 14.0 29.5 (10.9) (15.1) 0.1 0.1 3.2 14.5
Liabilities crystallised 0.0 0.0 0.0 0.0 (0.5) 0.0 (0.5) 0.0
Obligations expired 0.0 0.0 (2.9) (10.6) (1.0) (3.8) (3.9) (14.4)
Total contingent liabilities 162.7 148.7 209.9 222.1 9.6 4.8 382.2 375.6
Notes
1. Relate to outstanding workers’ compensation claims liabilities, and bank guarantees provided by joint-venture entities
and subsidiaries.
2. The corporation has guaranteed lease payments to be made by a third party, on the corporation’s behalf, over the 15 year and 17
year terms of finance leases entered into by the corporation during the year ended 30 June 2000 and 30 June 2001 respectively.
The discounted value of the future lease payments over the period of the leases amounts to $209.9 million (2004, $222.1 million).
3. Various legal liability claims have been lodged against the corporation, including motor vehicle accident and personal injury
claims. The directors have considered legal advice and are of the opinion that it is unlikely that the total of damages that may
become payable will exceed the amount shown.
The accompanying notes form an integral part of these financial statements.
2004
$m
2005
$m
2004
$m