Dear Minister

Airport lease and licence

The airport lease and licence, acquired through business combination, are considered to be complementary assets to Ayers Rock Resort as the airport effectively only services Ayers Rock Resort and would not be viable without the resort. The lease has 56 years left on the term. Therefore it is the expected useful life of the intangible. Voyages is responsible for the maintenance of all infrastructure relating to the operations of the airport. Fair value has been determined using the multi period excess earnings method.

Other contractual relationships

Existing contracts with travel agents, acquired through business combination, are considered to be complementary assets as they provide short-term benefit in marketing efforts and access to contracted agents. Fair value has been determined using the multi period excess earnings method. Expected useful life of the contractual relationship is 6 months.

Brands

Brands includes trademarks, business name and other collateral, acquired through business combination. The fair value of the brands has been determined on a “relief from royalty” method. Expected useful life of the brands is considered to be indefinite.

Residual goodwill

Residual goodwill, acquired through business combination, is considered to be fair value for the replacement cost of the assembled workforce acquired on acquisition, Ayers Rock Resort’s unique proximity to Uluru and the systems, procedures and synergies acquired.

	Consol 2011 $,000	Consol 2010 $,000	ILC 2011 $,000	ILC 2010 $,000
10M. ther Non-Financial Assets
Prepaid operating leases	12,547	10,402	12,547	10,402
Less: Amortisation of prepaid operating lease	(3,215)	(2,397)	(3,215)	(2,397)
	9,332	8,005	9,332	8,005
Other prepayments	487	333	206	333
	9,819	8,338	9,538	8,338
The prepaid operating lease is to be amortised as follows:
– within one year	818	806	818	806
– within one to five years	3,271	3,223	3,271	3,223
– over five years	5,243	3,976	5,243	3,976
	9,332	8,005	9,332	8,005
Total other prepayments are expected to be settled in:
No more than 12 months	487	333	206	333
More than 12 months	–	–	–	–
Total other prepayments	487	333	206	333
11. Payables
11A. uppliers payables
Amounts owing to suppliers	14,231	5,049	8,491	4,621
Total supplier payables	14,231	5,049	8,491	4,621
Total supplier payables are expected to be settled with 12 months:
Related entities	289	975	289	975
External parties	13,942	4,074	8,202	3,646
Total supplier payables	14,231	5,049	8,491	4,621
Settlement is usually made net 30 days.
Amounts owing to suppliers for land acquisition, land management and administrative goods and services as at reporting date include invoices received by suppliers for goods and services supplied prior to reporting date but unpaid as at reporting date and accruals for goods and services supplied prior to reporting date but for which invoices have not yet been received and where the Corporation was under a legal liability to pay.
11B. ther payables
Salaries and wages	591	460	265	419
Superannuation	323	29	45	29
GST payable	–	432	–	394
Other payables	167	218	166	218
Deferred benefit from lease incentive	9	17	9	17
Payment to vendor (refer note 15)	12,408	–	12,408	–
Total other payables	13,498	1,156	12,893	1,077
Other payables are expected to be settled in:
No more than 12 months	946	1,046	341	967
More than 12 months	12,552	110	12,552	110
Total other payables	13,498	1,156	12,893	1,077
11C. nterest bearing loan
Loan	219,000	–	219,000	–
Accrued interest on loan	1,520	–	1,520	–
Total interest-bearing loan	220,520	–	220,520	–
Interest-bearing loan is expected to be settled in:
No more than 12 months	82,520	–	85,520	–
More than 12 months	138,000	–	138,000	–
Total interest-bearing loan	220,520	–	220,520	–
The interest-bearing loan is a result of a deferred payment arrangement agreed with the vendor of Ayers Rock Resort. The consideration is payable over 5 years. The outstanding payments attract interest at 6.5% per annum fixed.
12. Provisions
12A. mployee provisions
Annual leave	2,879	1,127	874	881
Long service leave	1,679	1,209	1,315	1,126
Total employee provisions	4,558	2,336	2,189	2,007
Employee provisions are expected to be settled in:
No more than 12 months	3,749	1,371	1,620	1,167
More than 12 months	809	965	569	840
	4,558	2,336	2,189	2,007
12B. rovision for make good
Opening provision	290	290	290	290
New provisions recognised	5	–	5	–
Closing provision for make good on leasehold improvements	295	290	295	290
Makegood provision is expected to be settled in:
No more than 12 months	–	–	–	–
More than 12 months	295	290	295	290
	295	290	295	290
The Corporation currently has two agreements for the leasing of premises which have provisions requiring the Corporation to restore the premises to their original condition at the conclusion of the leases. The Corporation has made a provision to reflect the present value of these obligations.
13. estructuring
There were no contributions by or distributions to owners during the reporting period.
14. ash flow reconciliation
Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement:
For the purposes of the Cash Flow Statement, cash includes cash on hand and cash at bank. Cash at the end of the reporting period as shown in the Cash Flow Statement is reconciled to the related items in the Balance Sheet as follows:
Cash balances comprises:
Cash at bank and on hand	9,491	2,986	2,043	2,627
Deposits at call	10,488	16,905	10,488	16,905
Deposit with maturity less than 3 months	40,000	112,800	40,000	112,800
Cash advances	20	23	20	23
Total cash and cash equivalents	59,999	132,714	52,551	132,355
Balance of cash as at 30 June shown in the Cash Flow Statement	59,999	132,714	52,551	132,355
Reconciliation of net contribution/( cost of services) to net cash flows from operating activities:
Net contribution by/(cost of) services	(40,722)	(24,439)	(43,290)	(22,929)
Revenue from Government	54,805	–	54,805	–
Non cash items
Depreciation and amortisation	6,784	6,259	6,774	6,250
Net loss on sale of property, plant and equipment	80	242	80	242
Impairment of property, plant and equipment	–	4,167	–	4,167
Impairment of intangibles	11	–	11	–
Accrued interest	1,520	–	1,520	–
Gain on business combinations	(2,064)	–	–	–
GST recovered on non-operating cash flows	987	1,923	953	1,920
Change in assets and liabilities
(Increase)/decrease in receivables	(7,041)	32	(1,862)	138
(Increase)/decrease in other financial assets	164	188	(89,128)	(1,276)
(Increase)/decrease in inventory	(7,980)	10,654	(7,980)	10,654
(Increase)/decrease in biological assets	(5,462)	(2,072)	(2,009)	(2,072)
(Increase)/decrease in other non-financial assets	(1,481)	(3,018)	(1,200)	(3,018)
(Increase)/decrease in deferred tax assets	(694)	–	–	–
Increase/(decrease) in suppliers	9,182	(3,612)	3,870	(4,040)
Increase/ (decrease) in other payables	(66)	230	(592)	156
Increase/(decrease) in employee provisions	2,222	242	182	208
Increase/(decrease) in other provisions	8,563	(10,439)	8,563	(10,439)
Increase/(decrease) in income tax payable	354	–	–	–
Net cash from (used by)operating activities	19,162	(19,643)	(69,303)	(20,039)