NOTES TO THE FINANCIAL STATEMENTS
19. Provisions://
DECOMMISSIONING PROVISIONS $000
OTHER $000
TOTAL $000
Balance 1 July 2016
17,040
6,232
23,272
Additions
1,946
–
1,946
Reversed to the profit or loss Unwinding of discount Balance at 30 June 2017
–
(1,452)
(1,452)
1,455
–
1,455
20,441
4,780
25,221
Comprising: Current Non-current
–
4,780
4,780
20,441
–
20,441
Policies
A provision is recognised where the likelihood of a resultant liability is more probable than not, and the amount required to settle the liability can be reliably estimated.
Decommissioning
The decommissioning provisions represent the present value of the future expected costs for dismantling the group’s gas treatment and cogeneration plants situated at Kapuni and depot assets situated at various regions in New Zealand. Timing of economic outflows represents management’s best estimate of the end of the useful life of the plant and associated assets. These provisions comprise amounts that may be required to be utilised within one year or a longer period dependent on ongoing negotiations with third parties involved. There are currently no foreseeable uncertainties which would be reasonably expected to lead to material changes in the amounts provided.
Other provisions
20. Borrowings://
FAIR VALUE ADJUSTMENT ON HEDGED RISK $000
FACE VALUE $000
UNAMORT- ISED COSTS $000
CARRYING VALUE $000
FAIR VALUE $000
2017
CURRENCY MATURITY DATE
Bank facilities – variable rate NZD Feb 2018 – Mar 2020
95,000 307,205
(940)
–
94,060
94,060
Capital bonds – 5.7% fixed rate NZD –
(1,553)
– 305,652 319,349
Wholesale bonds – 4.996% fixed rate Senior notes – fixed rate Floating rate notes – variable rate Medium term notes – 7.625% fixed rate
NZD Mar 2024
100,000 697,139
(301)
–
99,699
98,320
USD Sep 2019 – Sep 2022
(1,369)
23,498 719,268 711,341
NZD Oct 2017 – Oct 2020
750,000
(1,579)
– 748,421 735,959
GBP Jan 2019
285,614
(909)
(81,315)
203,390 222,709
Balance at 30 June
2,234,958
(6,651)
(57,817) 2,170,490 2,181,738
101
Vector://AR 17
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