Vector Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS continued

16. Trade and other payables://

2018 $M

2017 $M

Current Trade payables

160.2

164.0

Deferred payables Employee benefits Deferred income Finance leases Interest payable Balance at 30 June Non-current Deferred income Deferred payables

8.5

10.4 15.9 25.6

15.6 34.3

0.3

0.4

39.6

33.7

258.5

250.0

8.9

10.6 30.0

35.8

Finance leases

0.2

0.4 0.5

Other non-current payables

Balance at 30 June

44.9

41.5

Other payables

Vector accrues employee benefits which remain unused at balance date, and amounts expected to be paid under short-term cash bonus plans. Deferred income includes third party contributions received in excess of those recognised in profit or loss. Deferred payables include third party rebates payable in excess of those paid in cash.

17. Provisions://

PROVISION FOR DISTRIBUTION TO CUSTOMERS

DECOMMISSIONING PROVISIONS $M

OTHER $M

TOTAL $M

Balance 1 July 2017

20.4

4.8 3.0

25.2 20.0

Additions

16.6

0.4 1.8

Unwinding of discount Balance at 30 June 2018

1.8

16.6

22.6

7.8

47.0

Comprising: Current Non-current

16.6

7.8

24.4 22.6

22.6

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

91

Vector://AR 18

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