BRADKEN LIMITED ANNUAL REPORT 2014 l 56
Notes to the consolidated financial statements
30 June 2014
(continued)
6 Profit from ordinary activities (continued)
Expenses (continued)
2014
2013
$'000
$'000
Rental expense relating to operating leases
Minimum lease payments
9,416
8,590
Total rental expense relating to operating leases
9,416
8,590
Research and development
17,005
6,861
Warranty
5,866
8,892
Stock Obsolescence
1,143
1,502
(215)
615
Employee benefits expense
377,597
415,056
7 Significant items
2014
2013
Notes
$'000
$'000
Gains
(a)
13,339
-
Expenses
(a)
-
30,412
(b)
19,535
-
(b)
21,626
2,558
6,500
-
(a) Pala legal case
(b) Manufacturing reorgansation
(c) Due dilligence, acquisition and legal costs
During the year Bradken incurred $5.3m of due dilligence costs associated with acqusitions that did not proceed and further
legal costs of $1.2m.
Due dilligence, acquisition and legal costs
Restructuring costs
Impairment of assets
Costs recovery associated with the Pala
legal case and judgement
Costs associated with the Pala legal case and judgement
As announced in May 2014, the Group undertook a review of its operations resulting in a reorganisation of its manufacturing
facilities. In the year ended 30 June 2014, the Group incurred $12.5m of redundancy and other restructuring costs and had
provided a further $9.1m in costs as a provision allowed in the accounts at 30 June 2014. In addition $19.5m of impairment
expenses were recognised relating to facilities subject to closure .
It is estimated that a further $13.2 million of restructuring costs will be incurred in the first half of the 2015 financial year
associated with this reorganisation.
During the period Bradken reached a commercial in confidence settlement with Norcast S.ar.L regarding the 2011 of Norecast.
An amount of $30.4m (before tax) had been expensed during the financial year ending 30 June 2013 pursuant to the legal case
relating to the Federal Court of Australia judgment sum, interest and associated costs. As a consequence of the Federal Court of
Australia setting aside its initial judgement and the settlement reached with Norcast S.ar.L, a gain of $13.3m (before tax) has
been recorded in the current period.
Net bad and doubtful debts expense (revenue) including
movements in doubtful debts provision
Page 56
Bradken Limited
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
(CONTINUED)
1...,83,84,85,86,87,88,89,90,91,92 94,95,96,97,98,99,100,101,102,103,...136