Vector Annual Report 2017

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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