McPHERSON’S LIMITED
ANNUAL REPORT 2015
55
(B) PROFIT / (LOSS) BEFORE INCOME TAX EXPENSE INCLUDES THE FOLLOWING NET EXPENSES
AND GAINS:
2015
$’000
2014
$’000
Expenses:
Total rental expenses relating to operating leases
6,583
7,037
Bad and doubtful debts - trade debtors
412
127
Provision for stock obsolescence
1,797
4,082
Other provisions:
Employee entitlements
3,570
3,035
Employee incentives
958
404
Claims, returns and warranty
2,662
1,423
Restructure
1,409
100
Contingent consideration
(2,036)
-
Other
413
161
Total other provisions
6,976
5,123
Other expenses:
Cost of goods sold
208,485
205,685
Loss on disposal of plant and equipment
100
130
Net foreign exchange (gains)/losses
(3,490)
790
Finance costs:
Borrowing costs
6,378
6,647
Termination of interest rate swap associated with refinancing
1,969
-
8,347
6,647