AWB Limited - 2004 Annual Report
AWB Limited - 2004 Annual Report
AWB Limited - 2004 Annual Report
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
29. CONTINGENT LIABILITIES<br />
Consolidated<br />
<strong>2004</strong> 2003<br />
$'000 $'000<br />
Litigation claims<br />
Several claims for damages and costs were lodged against <strong>AWB</strong> <strong>Limited</strong> and its controlled entities<br />
which denied liability and defended the claims. The maximum damages/costs claimed but not<br />
otherwise recognised in the statement of financial position were estimated to amount to: 2,844 4,393<br />
30. EMPLOYEE ENTITLEMENTS AND SUPERANNUATION COMMITMENTS<br />
Consolidated<br />
<strong>AWB</strong> <strong>Limited</strong><br />
<strong>2004</strong> 2003 <strong>2004</strong> 2003<br />
Notes $'000 $'000 $'000 $'000<br />
The aggregate employee entitlement liability is comprised of:<br />
– Provisions 32,347 28,390 179 8,471<br />
Number<br />
Number<br />
Number of full time equivalent employees at the end of the year 2,730 2,729 1 544<br />
Staff Ownership Plan<br />
An employee share offer was made to employees of <strong>AWB</strong> who were eligible employees as at December 2003. <strong>AWB</strong> offered eligible employees an<br />
interest free loan (fully repayable at the end of 10 years or upon resignation). 1,307 (2003: 222) permanent employees participated in this offer with<br />
1,610,954 (2003: 486,418) shares being allocated, with a value of $7,217,074 (2003: $1,897,030).<br />
Employee Share Plan<br />
In January <strong>2004</strong>, a third offer was made under the employee share plan which was established in 2002, where all permanent employees of the<br />
consolidated entity were entitled to be issued with B class shares in <strong>AWB</strong> <strong>Limited</strong>. Each permanent employee who participated received shares to the<br />
value of $1,000 (based on share price at issue date). Shares were provided under the scheme to a total of 2,044 employees. The shares were issued<br />
for nil consideration. The shares are quoted on the ASX.<br />
During the year, a total of 453,768 (2003: 116,078) B class shares were issued to employees under the plan. The total value of the shares at the date<br />
of issue was $2,037,418. It is the policy of <strong>AWB</strong> not to charge the value of the shares issued as an employee benefits expense. In accordance with this<br />
policy, no amounts have been recognised in respect of the share issue during the year.<br />
Superannuation commitments<br />
All employees are able to choose where their superannuation contributions are directed, in line with <strong>AWB</strong> Packaging Policy and Australian Taxation<br />
Office rules. <strong>AWB</strong> also offers a default fund, <strong>AWB</strong> Staff Superannuation Plan, which is a subset of the Mercer Retirement Trust for all other<br />
employees. As all schemes are accumulation schemes, <strong>AWB</strong> has no future superannuation liabilities to report.<br />
Performance Rights Plan<br />
A Performance Rights Plan exists, whereby selected senior employees (including specified executives) of the consolidated entity are given the<br />
opportunity to acquire rights over unissued B class shares in <strong>AWB</strong> <strong>Limited</strong> by participating in the plan.<br />
The terms and valuation of performance rights granted are consistent with those granted to specified executives (refer Note 24).<br />
At the date of this report, unissued ordinary shares of the company under the Performance Rights Plans are:<br />
Grant date Expiry date Exercise price (i) Number of shares<br />
1 October 2001 1 October 2005 $1.00 169,659<br />
1 October 2002 1 October 2006 $1.00 359,864<br />
1 October 2003 1 October 2007 $1.00 434,965<br />
964,488<br />
(i) The total exercise price payable on the exercise of any performance rights on a particular day will be one dollar in total (irrespective of the number<br />
of rights exercised on that day).<br />
89