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78
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APN
annual report
2011
notes to the financial statements
APN News & Media Limited and Controlled Entities
22. RETIREMENT BENEFIT OBLIGATIONS (continued)
Key assumptions used in the latest actuarial valuation are discount rate 3.2% (2010: 4.7%), salary inflation 4.0% (2010: 4.0%) and expected
return on plan assets 5.5% (2010: 6.0%). As at 31 December 2011, the plan assets have been invested in the following asset classes: Australian
equities 27% (2010: 29%), international equities 27% (2010: 24%), property 9% (2010: 7%), cash and fixed interest 17% (2010: 17%) and other
20% (2010: 23%).
2011
$’000
2010
$’000
Amounts recognised in income statement
Company service cost
453
508
Interest cost on defined benefit obligation
714
841
Actuarial loss recognised
69
43
Expected return on assets
(897)
(1,059)
Expense recognised in income statement
339
333
Actual return on plan assets
(67)
789
23. CAPITAL COMMITMENTS
Capital expenditure contracted for at balance date but not recognised as liabilities:
Not later than one year
6,012
2,168
Later than one year but not later than five years
2,221
1,495
Total capital commitments
8,233
3,663
24. LEASE COMMITMENTS
Commitments for minimum lease payments in relation to operating leases and rental commitments contracted for at the reporting date but
not recognised as liabilities, payable:
Not later than one year
99,015
104,656
Later than one year but not later than five years
207,582
196,453
Later than five years
139,318
73,675
Commitments not recognised in the financial statements
445,915
374,784
Representing:
Cancellable operating leases and rental commitments
6,708
11,417
Non-cancellable operating leases and rental commitments
439,165
363,274
Future finance lease charges
42
93
Commitments not recognised in the financial statements
445,915
374,784
Commitments for finance leases are payable as follows:
Not later than one year
6,376
6,438
Later than one year but not later than five years
50,649
57,002
57,025
63,440
Less future finance charges on finance leases
(9,126)
(13,135)
Total lease liabilities
47,899
50,305
Representing lease liabilities
(refer note 15):
Current
2,447
2,421
Non-current
45,452
47,884
Total lease liabilities
47,899
50,305
The weighted average interest rate implicit in the leases is 8.1% (2010: 8.1%) per annum. The rental commitments represent fixed portions of
long-term rental contracts. The Directors believe that the associated future revenue streams will be sufficient to cover these commitments.