Annual Report - AWB Limited

AWB LIMITED Notes to and forming part of the financial statements for the year ended 30 September 2008ConsolidatedAWB Limited2008 2007 2008 2007$’000 $’000 $’000 $’00028. Expenditure Commitments(a) Capital expenditure commitmentsEstimated capital expenditure contracted for at balance datebut not provided for:- payable not later than one year 12,478 3,128 - -- payable later than one year but not later than five years - 4,495 - -12,478 7,623 - -(b) Lease expenditure commitmentsOperating leases (non-cancellable)- payable not later than one year 35,716 22,201 - -- payable later than one year but not later than five years 80,406 67,450 - -- payable later than five years 20,094 24,773 - -136,216 114,424 - -These lease commitments represent future minimum lease payments due for the head office, regional and overseas offices and motor vehiclesunder operating leases. The head office lease is for 12 years which commenced in the 2004 financial year. The remaining operating leases havean average lease term of three years. Lease payments comprise a base amount plus an incremental contingent rental. Contingent rentals arebased on the contract terms.29. Contingent LiabilitiesAWB Limited2008 2007$’000 $’000Litigation claimsSeveral claims for damages and costs were lodged against AWB Limited and itscontrolled entities which AWB Limited denied liability and defended the claims.The maximum damages/costs claimed but not otherwise recognised in the balancesheet were estimated to amount to: 587 1,364IndemnitiesThe parent entity had contingent liabilities at 30 September 2008 in respect of indemnities given by the AWB Limited to AWB (International)Limited against possible costs incurred by AWB (International) Limited arising in relation to proceedings under the Oil for Food Inquiry and anypossible tax assessments issued against AWB (International) Limited by the ATO. This indemnity may give rise to liabilities in the parent entity inthe event that AWB (International) Limited incurs an indemnified liability. Any possible liabilities cannot be quantified at the date of this report.98 www.awb.com.au