Notes to the consolidated financial statements | Note 29

    2016
R’000
    2015
R’000
 
29. PROVISIONS          
  Long-term portion 397 970     340 649  
  Short-term portion 358 319     267 094  
    756 289     607 743  

    Onerous 
contracts 
R’000 
Dismantling 
and site 
restoration 
R’000 
Customer 
loyalty 
programme 
R’000 
Other 
R’000 
    Total 
R’000 
 
  Balance at July 1 2014 42 760  324 039  98 599  44 815        510 213    
   Created  22 847  69 909  35 846  39 764        168 366    
   Utilised  259  (58 329) (28 845) (13 940)       (100 855)   
   Net acquisition of businesses  –  2 704  –  25 238        27 942    
   Exchange rate adjustments  1 908  5 692  (5 931) 408        2 077    
   Balance at June 30 2015  67 774  344 015  99 669  96 285        607 743    
   Created  806  166 865  25 031  53 173        245 875    
   Utilised  (31 649) (65 400) (18 832) (60 039)       (175 920)   
   Net acquisition of businesses  –  2 149  (178) (1 533)       438    
   Exchange rate adjustments  7 338  27 912  17 159  17 136        69 545    
   Effect of discounting  1 383  7 225  –  –        8 608    
   Balance at June 30 2016  45 652  482 766  122 849  105 022        756 289    
 

Onerous contracts
Onerous contracts are identified through regular reviews of the terms and conditions of contracts as well as on the acquisition of businesses. A provision for onerous contracts is calculated as the present value of the portion which management deems to be onerous in light of the current market conditions, discounted using market-related rates. An annual expense is recognised over the life of the contracts.

Provision for cost of dismantling and site restoration
A provision is raised for the estimated costs of dismantling and removing items, and restoring the property on which they are located. The change in the liability arising as a result of unwinding the discount is recognised in the statement of profit or loss as a finance charge. The dismantling of the plant and recommissioning of buildings is expected to coincide with the end of the useful life of the plant and lease periods.

Customer loyalty programme
This is a customer loyalty programme introduced by certain operations within the group, whereby customers can earn points for redemption in the form of gift certificates and products of the operations. The provision is calculated based on the points outstanding at year-end.

Other
Other consists of various individually insignificant provisions.


Notes to the consolidated financial statements | Note 29