Brambles 2006 Annual Report - Alle jaarverslagen

122
Brambles
2006 Annual Report
NOTES TO AND FORMING PART OF
THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 30 June 2006
Note 25.
Provisions
Employee
entitlements
US$m
Restoration
and aftercare
US$m
Business
disposals
US$m
Other
US$m
Total
US$m
At 1 July 2005
Current 110.8 8.4 7.9 50.6 177.7
Non-current 20.4 77.5 – 1.1 99.0
131.2 85.9 7.9 51.7 276.7
Charge to income statement:
– Additional provisions 62.0 – 43.5 36.7 142.2
– Unused amounts reversed – (0.3) – – (0.3)
Employee phantom options 8.5 – – – 8.5
Utilisation of provision (75.7) (8.7) (4.7) (24.6) (113.7)
Transfer to discontinued operations (9.8) (75.2) (0.3) (17.9) (103.2)
Acquisition of subsidiaries 1.4 – – 1.9 3.3
Disposal of subsidiaries (41.5) (5.9) (2.1) (6.6) (56.1)
Unwinding of discount – 2.2 – 0.1 2.3
Currency variations (0.2) 2.0 0.2 2.1 4.1
At 30 June 2006 75.9 – 44.5 43.4 163.8
Current 72.5 – 10.1 43.4 126.0
Non-current 3.4 – 34.4 – 37.8
Employee entitlements provision comprises US$4.9 million (2005: US$18.1 million) for long service leave, US$2.8 million for phantom
shares (2005: US$3.9 million) and US$68.2 million (2005: US$109.2 million) for other employee related obligations (other than those
resulting from pension plans). None of these amounts related to phantom shares which had vested at reporting date. US$1.6 million
(2005: US$6.4 million) of the long service leave provision has been recognised as current as it is expected to vest within one year from
reporting date. The remaining balance of long service leave of US$3.3 milllion (2005: US$11.7 million) is expected to vest within the next
two to ten years and has been discounted to present value.
Other include provisions of US$11.8 million (2005: US$7.4 million) for restructuring and unification costs, US$10.3 million
(2005: US$12.1 million) for litigation and customer disputes, and US$21.3 million (2005: US$32.2 million) for other firm commitments.
Note 26.
Retirement benefit obligations
a) Defined contribution plans
Brambles operates a number of defined contribution retirement benefit plans for qualifying employees. The assets of these plans are
held in separately administered trusts or insurance policies. In some countries, Brambles’ employees are members of state-managed
retirement benefit plans. Brambles is required to contribute a specified percentage of payroll costs to the retirement benefit plan to
fund benefits. The only obligation of Brambles with respect to defined contribution retirement benefit plans is to make the specified
contributions.
US$19.8 million (2005: US$16.4 million) representing contributions paid and payable to these plans by Brambles at rates specified in the
rules of the plans has been recognised as an expense in the income statement.
b) Defined benefit plans
Brambles operates a number of defined benefit pension plans. The majority of the plans are self-administered and the plans’ assets are
held independently of Brambles’ finances. Under the plans, the employees are entitled to retirement benefits based upon a percentage
of final salary. No other post-retirement benefits are provided. The plans are funded plans.
The plan assets and the present value of the defined benefit obligation recognised in Brambles’ balance sheet are based upon the most
recent formal actuarial valuations which have been updated to 30 June 2006 by independent professionally qualified actuaries and take
account of the requirements of IAS 19/AASB 119. The present value of the defined benefit obligation, the related current service cost
and past service cost were measured using the projected unit credit method.
In addition to the principal defined benefit plans included in disclosures below, Brambles has a number of other arrangements in several
countries that are either defined benefit pension plans or have certain defined benefit characteristics. Each of these arrangements has
been assessed as immaterial and they have not been subjected to an independent IAS 19/AASB 119 valuation.