2012 Annual Report - Domino's Pizza

NOTES TO THE FINANCIAL STATEMENTS CONTINUED
24. OTHER FINANCIAL LIABILITIES
2012
$’000
2011
$’000
Non-current
Financial guarantee contracts 252 566
252 566
Current
Derivatives designated and effective as hedging
instruments carried at fair value:
Interest rate swap (at fair value) - 137
Franchisee store deposits (at amortised cost) - 66
- 203
Current - 203
Non-current 252 566
252 769
25. PROVISIONS
2012
$’000
2011
$’000
Employee benefits (i) 2,732 2,382
Other 202 196
2,934 2,578
Current 2,360 2,164
Non-current 574 414
2,934 2,578
Other Provisions
MAKE GOOD (II)
$’000
STRAIGHT LINE
LEASING (III)
$’000
TOTAL
$’000
Balance at 3 July 2011 25 171 196
Additional provisions recognised - - -
Payments made - - -
Reductions resulting from remeasurement - 6 6
Balance at 1 July 2012 25 177 202
(i) The current provision for employee benefits includes $2,122 thousand of annual leave and vested long service leave entitlements accrued but not expected to be taken within 12 months (2011: $1,948
thousand for the Consolidated entity).
(ii) The provision for the make good is in respect of restoring sites to their original condition when the premises are vacated. Management has estimated the provision based on historical data in relation to
the store closure numbers and costs, as well as future trends that could differ from historical amounts.
(iii) The provision for straight line leasing arises as fixed percentage increases in operating leases are recognised as an expense on a straight line basis, over the period of the lease.
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ANNUAL REPORT 2012 DOMINO’S PIZZA ENTERPRISES LIMITED