NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 10 KEY MANAGEMENT PERSONNEL COMPENSATION The aggregate compensation made to Key Management Personnel (KMP) of the Group and the Company is set out below: 2016 2015 $ $ Short-term employee benefits 8,775,522 Post-employment benefits 226,097 Other long-term benefits 86,547 Share-based payment 2,026,265 11,114,431 6,495,092 219,720 36,254 736,784 7,487,850 The compensation of each member of the KMP of the Group and a discussion of the compensation policies of the Company are detailed in the Directors’ Report and Remuneration Report which accompany these Consolidated Financial Statements. 11 SHARE-BASED PAYMENTS Executive and Employee Share Option Plan The Executive Performance Share Plan was approved at Blackmores’ Annual General Meeting in October 2015. Participation is open to Senior Executives determined to be eligible by the Board. Under this plan, rights to acquire shares in the Company are granted annually to eligible Senior Executives at no cost and vest provided specific performance hurdles are met. The fair value of rights granted is calculated in accordance with AASB 2 ‘Share-based Payments’. Under the Company Executive Performance Share Plan, during the year the Company granted entitlements to an allocation of ordinary shares provided specific performance objectives and hurdles are met over the three year period commencing 1 July 2015 to the year ending 30 June 2018. If the performance and employment vesting conditions are met, the minimum number of rights that could be vested under the entitlement is 6,780 (2015: 19,553) and the maximum number of rights that could be vested is 40,673 (2015: 117,326). Several grant dates applied to these rights; as a result the following fair values applied to the number of rights listed below. The following share-based payment arrangements were in existence during the current and prior reporting periods: SHARE RIGHTS SERIES NUMBER OF RIGHTS GRANT DATE EXPIRY DATE EXERCISE FAIR VALUE AT PRICE GRANT DATE GRANTS IN THE 2016 YEAR $ Granted 25 November 2015 40,673 25 Nov 2015 30 Jun 2018 N/A 147.49 GRANTS IN THE 2015 YEAR $ Granted 7 November 2014 Granted 10 December 2014 Granted 20 April 2015 111,387 7 Nov 2014 5,143 10 Dec 2014 796 20 Apr 2015 30 Jun 2017 30 Jun 2017 30 Jun 2017 N/A N/A N/A 25.22 28.92 52.44 The following reconciles the share-based arrangements outstanding at the beginning and end of the year: 2016 2015 WEIGHTED WEIGHTED AVERAGE AVERAGE NUMBER EXERCISE NUMBER EXERCISE OF RIGHTS PRICE OF RIGHTS PRICE The allocation is based on a percentage of each Senior Executive’s and Senior Manager’s base remuneration and the allocation varies depending on the actual EPS growth delivered for the relevant year as follows: Share rights are vested at 30 June three years after grant and shares are subsequently issued in September of that year following audit clearance of the Group’s result and Board approval. The issue price for share rights granted in the 2016 financial year will be determined in September 2018. BLACKMORES ANNUAL REPORT 2016 Balance at the beginning of the year 117,326 Granted during the year 40,673 117,326 Forfeited during the year - Exercised during the year - N/A - N/A Expired during the year - - Balance at the end of the year 157,999 117,326 Exercisable at the end of the year 157,999 117,326 81 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 11 SHARE-BASED PAYMENTS (CONT.) 2016 RATE OF EPS GROWTH PERCENTAGE OF PARTICIPANT’S BASE REMUNERATION OTHER SENIOR CHIEF EXECUTIVE SENIOR COMPANY OFFICER EXECUTIVES MANAGEMENT 3.9% 5.0 25.0 10.0 3.9% to 7.8% pro rata between 25.0 to 50.0 10.0 to 20.0 5.0 to 10.0 7.8% 10.0 50.0 20.0 7.8% to 17.9% pro rata between 50.0 to 150.0 20.0 to 60.0 10.0 to 30.0 17.9% 30.0 150.0 60.0 Greater than 17.9% 150.0 60.0 30.0 2015 RATE OF EPS GROWTH PERCENTAGE OF PARTICIPANT’S BASE REMUNERATION OTHER SENIOR CHIEF EXECUTIVE SENIOR COMPANY OFFICER EXECUTIVES MANAGEMENT 3.9% 3.9% to 7.8% pro rata between 7.8% 7.8% to 17.9% pro rata between 17.9% Greater than 17.9% 25.0 25.0 to 50.0 50.0 50.0 to 150.0 150.0 150.0 10.0 10.0 to 20.0 20.0 20.0 to 60.0 60.0 60.0 5.0 5.0 to 10.0 10.0 10.0 to 30.0 30.0 30.0 Share-Based Conditions The number of shares to be issued to a Senior Executive is determined by dividing the percentage amount of base remuneration calculated in accordance with the above by: • the weighted average price of the shares for the five day trading period commencing seven days after Blackmores’ results in respect of the prior financial year are announced to the ASX, less • the amount of any final dividend per share declared as payable for the prior financial year. Staff Share Acquisition Plan The Group has established a Staff Share Acquisition Plan. The plan is open to all employees including Senior Executives and enables them to purchase up to $1,000 of Blackmores shares tax free (subject to taxable income thresholds) each year with money that would have otherwise been paid as profit share. 872 shares were issued during the year ended 30 June 2016 (2015: 1,640 shares). In July 2016, 651 shares (2015: 776 shares) will be issued to employees, including Senior Executives, for profit share entitlement that would otherwise have been paid in cash during the year ended 30 June 2016. Options Plan At 1 July 2015 and at 1 July 2014 there were no share options outstanding, none were issued during the year ended 30 June 2016 (2015: nil) and as at 30 June 2016 (2015: nil) there were no unexercised share options. The compensation of each member of the Key Management Personnel of the Group and a discussion of the compensation policies of the Company are detailed in the Remuneration Report which accompanies these Consolidated Financial Statements. BLACKMORES ANNUAL REPORT 2016 82 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 12 REMUNERATION OF AUDITOR 2016 $ 2015 $ Auditor of the Parent Entity Auditing or reviewing the Financial Statements 316,065 280,160 Taxation services 110,000 110,000 Other non-audit services1 253,293 45,500 679,358 435,660 Network Firm of the Parent Company Auditor Auditing the Financial Statements Taxation services The auditor of Blackmores Limited is Deloitte Touche Tohmatsu. 228,335 - 228,335 224,884 88,813 313,697 1. ‘Other non-audit services’ is comprised of fees in relation to the provision of accounting advice and consulting services. 13 AND OTHER RECEIVABLES TRADE 2016 $’000 2015 $’000 Current Current trade and other receivables1 135,518 107,355 Allowance for doubtful debts (1,218) (169) Allowance for claims (1,096) (927) 133,204 106,259 Goods and services tax (GST) recoverable 1,432 615 Other receivables - 202 134,636 107,076 1. The average credit period on sale of goods is 60 days from the end of the month of invoice. No interest is charged on trade receivables and the Group does not hold any collateral over these balances. Trade receivables consist of a large number of customers spread across several retail channels and geographic regions. At 30 June 2016, the Group had two customers (2015: three customers) each comprising amounts greater than 5% of the total trade receivables. These customers owed the Group more than $46,000 thousand (2015: $52,000 thousand) and accounted for approximately 35% (2015: 49%) of all receivables owing. 2016 $’000 2015 $’000 Ageing of Past Due But Not Impaired 0 - 30 days past due date 31 - 60 days past due date 61 - 90 days past due date > 90 days past due date Total 17,440 3,125 1,717 1,443 23,725 17,912 827 651 710 20,100 An allowance has been made for estimated irrecoverable trade receivable amounts arising from the past sale of goods, determined by reference to past default experience. In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. The Group manages credit risk with regular review of the balances outstanding and restrictive action is taken where necessary. BLACKMORES ANNUAL REPORT 2016 83 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 13 TRADE AND OTHER RECEIVABLES (CONT.) 2016 $’000 2015 $’000 Ageing of Impaired Trade Receivables 0 - 30 days 31 - 60 days 61 - 90 days > 90 days Total 16 711 481 10 1,218 49 9 111 169 Included in the allowance for doubtful debts are individually impaired trade receivables with a balance of $31 thousand (2015: $77 thousand). The Group does not hold any collateral over these balances. The Directors believe that there is no further credit provision required in excess of the allowance for doubtful debts. Movement in the Allowance for Doubtful Debts Balance at the beginning of the year Amounts written off as uncollectable Increase/(reduction) in provision Balance at the end of the year 169 - 1,049 1,218 688 (506) (13) 169 14 INVENTORIES Ingredients Raw materials Finished goods 9,873 50,300 56,313 116,486 1,806 10,420 26,439 38,665 The provision at balance date to cover inventory write down is $2,107 thousand (2015: $2,949 thousand). 15 PROPERTY, PLANT AND EQUIPMENT 2016 $’000 2015 $’000 110,000 99,935 (42,374) (39,200) 67,626 60,735 Carrying amounts of: Freehold land 12,848 12,848 Buildings 30,123 31,054 Leasehold improvements 1,132 350 Plant and equipment 19,899 15,049 Motor vehicles 121 157 Capital work in progress 3,503 1,277 67,626 60,735 Cost Accumulated depreciation BLACKMORES ANNUAL REPORT 2016 84 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 15 PROPERTY, PLANT AND EQUIPMENT (CONT.) LEASEHOLD CAPITAL FREEHOLD IMPROVE- PLANT AND MOTOR WORK IN LAND BUILDINGS MENTS EQUIPMENT VEHICLES PROGRESS $’000 $’000 $’000 $’000 $’000 $’000 Cost Balance at 30 June 2014 12,848 36,983 735 45,754 Additions - - 78 1,585 Category transfers - - - 363 Disposals - - - (214) Net foreign currency exchange differences arising on translation of financial statements of foreign operations - - 13 199 Balance at 30 June 2015 12,848 36,983 826 47,687 Additions - - 1,086 8,946 Additions obtained through business combinations - - 147 399 Category transfers - - 26 1,251 Disposals - - (378) (3,579) Net foreign currency exchange differences arising on translation of financial statements of foreign operations - - (25) 24 Balance at 30 June 2016 12,848 36,983 1,682 54,728 TOTAL $’000 293 363 96,976 85 1,277 3,025 - (363) (64) - (278) - - 212 314 1,277 99,935 - 3,503 13,535 15 - 561 - (1,277) (73) - (4,030) - 256 - (1) 3,503 110,000 (419) (27,769) - 201 (74) (4,914) (177) 55 (35) - (33,363) - 256 - (5,954) 17 (156) (476) (32,638) 250 3,321 (84) (262) (252) (5,265) - (157) 60 (6) (32) - 12 15 (550) (34,829) - (135) - 27 - (42,374) 350 15,049 1,132 19,899 157 121 Accumulated Depreciation Balance at 30 June 2014 - (4,998) Disposals - - Depreciation expense - (931) Net foreign currency exchange differences arising on translation of financial statements of foreign operations - - Balance at 30 June 2015 - (5,929) Disposals - - Assets obtained through business combinations - - Depreciation expense - (931) Net foreign currency exchange differences arising on translation of financial statements of foreign operations - - Balance at 30 June 2016 - (6,860) (139) (39,200) 3,631 (352) (6,480) Net Book Value As at 30 June 2015 12,848 31,054 As at 30 June 2016 12,848 30,123 1,277 60,735 3,503 67,626 No impairment losses have been recognised in the current year (2015: $nil). BLACKMORES ANNUAL REPORT 2016 85 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 16 INVESTMENT PROPERTY 2016 2015 $’000 $’000 Cost of investment property 2,160 2,160 At cost Balance at beginning of year Balance at end of year 2,160 2,160 2,160 2,160 Investment property in the form of a plot of land at 15 Jubilee Avenue, Warriewood, NSW 2102 was acquired during the financial year ended 30 June 2010. At the date of the signing of these Consolidated Financial Statements there were no plans to use this land for the production of goods or services or for administrative purposes, nor for sale in the ordinary course of business. In line with the Group’s accounting policy on investment property, this property has been measured at cost. The cost of the purchased investment property comprises its purchase price and any directly attributable expenditure. Directly attributable expenditure includes professional fees for legal services, property transfer taxes and other transaction costs. As the property in question is freehold land, no depreciation is recognised in relation to it. This investment property is tested for impairment annually. To date no impairment losses have been recognised and the Directors remain confident that the carrying amount of the investment property will be recovered in full. 17 OTHER INTANGIBLE ASSETS 2016 2015 $’000 $’000 Cost Accumulated amortisation and impairment 35,629 (2,893) 32,736 20,858 (2,328) 18,530 CAPITALISED REGISTRA- FORMULA- TRADE- ROYALTY WEBSITE TIONS1 MARKS1 TIONS1 STREAM BRANDS1 PATENTS TOTAL $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Cost Balance at 30 June 2014 Additions Additions from internal development Effect of foreign currency exchange differences Balance at 30 June 2015 Additions Additions from internal development Assets obtained through business combination Effect of foreign currency exchange differences Balance at 30 June 2016 2,070 - 600 - 2,670 - 311 - - 2,981 893 - - - 893 - - - - 893 288 - - - 288 - - 1,160 - 1,448 272 - - - 272 - - - - 272 450 - - - 450 - - - - 450 15,313 - - - 15,313 - - 13,300 - 28,613 972 - - - 972 - - - - 972 20,258 600 20,858 311 14,460 35,629 Accumulated Amortisation BLACKMORES ANNUAL REPORT 2016 86 Balance at 30 June 2014 Amortisation expense Effect of foreign currency exchange differences Balance at 30 June 2015 Amortisation expense Effect of foreign currency exchange differences Balance at 30 June 2016 (1,610) (334) 4 (1,940) (392) - (2,332) - - - - - - - - - - - - - - - - - - - - - (188) (90) - (278) (90) - (368) - - - - - - - (97) (13) - (110) (83) - (193) 15,313 28,613 862 779 (1,895) (437) 4 (2,328) (565) (2,893) Net Book Value As at 30 June 2015 As at 30 June 2016 730 649 893 893 288 1,448 272 272 172 82 18,530 32,736 1. These assets are considered to be of indefinite life and therefore do not require amortisation, but are subject to impairment testing. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 17 OTHER INTANGIBLE ASSETS (CONT.) The following useful lives are used in the calculation of amortisation expense: Capitalised website development 3 years Patents 20 years Royalty stream 5 years The amortisation expense has been included in the line item ‘depreciation and amortisation expenses’ in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. 18 GOODWILL 2016 2015 $’000 $’000 Cost Balance at beginning of the year Additional amounts recognised from business combinations occurring during the year (note 38.4) Balance at end of the year 16,863 3,169 20,032 16,863 16,863 18.1 ALLOCATION OF GOODWILL TO CASH-GENERATING UNITS Goodwill has been allocated for impairment testing purposes to the following cash-generating units: Pure Animal Wellbeing BioCeuticals Global Therapeutics Intangible assets with indefinite lives have been allocated for impairment testing purposes to the following cash-generating units: Pure Animal Wellbeing BioCeuticals Global Therapeutics 658 658 16,205 16,205 3,169 20,032 16,863 1,189 1,189 15,481 15,481 14,460 31,130 16,670 Pure Animal Wellbeing The recoverable amount of this cash-generating unit is determined on a value in use calculation. This calculation uses cash flow projections based on the five year plan approved by management and endorsed by the Board, and also uses a terminal value calculation. Cash flow projections are based on estimated growth in EBITDA (net of tax) and estimated working capital changes. The cash flows beyond that five-year period have been extrapolated using a steady 2% per annum growth rate which is the projected long-term inflation rate. The Directors believe that any reasonably possible change in the key assumptions on which recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash-generating unit. BioCeuticals The recoverable amount of this cash-generating unit is determined on a value in use calculation. This calculation uses cash flow projections based on the five year plan approved by management and endorsed by the Board, and also uses a terminal value calculation. Cash flow projections are based on estimated growth in in EBITDA (net of tax) and estimated working capital changes. The cash flows beyond that five-year period have been extrapolated using a steady 2% per annum growth rate which is the projected long-term inflation rate. The Directors believe that any reasonably possible change in the key assumptions on which recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash-generating unit. The key assumptions used in the value in use calculations for Pure Animal Wellbeing and BioCeuticals cash-generating units are as follows. Budgeted sales growth is expected to be in line with sales growth in the category Budgeted margins are expected to remain consistent The discount rate used for both Pure Animal Wellbeing and BioCeuticals is 8% 19 TRADE AND OTHER PAYABLES 2016 2015 $’000 $’000 Trade payables1 Goods and services tax (GST) payable Other creditors and accruals 102,096 4,339 54,043 160,478 52,835 2,940 39,133 94,908 1. The average credit period on purchases is 30 days from the end of the month of invoice. The Group has financial risk management policies in place to ensure all payables are paid within the credit time-frame. BLACKMORES ANNUAL REPORT 2016 Budgeted sales growth Budgeted margins Discount rate 87 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 20 CURRENT TAX LIABILITIES 2016 2015 $’000 $’000 Income tax payable Withholding tax payable 24,093 111 24,204 12,815 47 12,862 21 INTEREST BEARING LIABILITIES 2016 2015 $’000 $’000 Non-current Secured – at amortised cost: Bank bills1 55,446 44,000 Summary of borrowing arrangements: 1. In accordance with the security arrangements of liabilities, as disclosed in this note to the Consolidated Financial Statements, effectively all assets of the Parent Entity have been pledged as security. 22 PROVISIONS 2016 2015 $’000 $’000 Current 7,440 6,136 148 148 7,588 6,284 Non-current Employee benefits 1,134 730 Employee benefits Directors’ retirement benefits 23 ISSUED CAPITAL 2016 2015 $’000 $’000 17,225,156 fully paid ordinary shares (2015: 17,224,284) 37,753 37,753 2016 2015 2016 ISSUED 2015 ISSUED NUMBER CAPITAL NUMBER CAPITAL ’000 $’000 ’000 $’000 Fully Paid Ordinary Shares Balance at beginning of financial year Issue of shares under Executive and employee share plans (notes 11, 34.3) Issue of shares under Dividend Reinvestment Plan Balance at end of financial year BLACKMORES ANNUAL REPORT 2016 88 17,224 1 - 17,225 37,753 - - 37,753 Fully paid ordinary shares carry one vote per share and carry a right to dividends. 17,113 2 109 17,224 34,502 3,251 37,753 Employee Share Plans Further details of the Group’s Executive and employee share plans are contained in note 11 to the Consolidated Financial Statements. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 24 RESERVES 2016 2015 $’000 $’000 Equity-settled employee benefits reserve Cash flow hedging reserve Foreign currency translation reserve 4,440 (376) 1,188 5,252 6,933 (913) 2,043 8,063 24.1 EQUITY-SETTLED EMPLOYEE BENEFITS RESERVE The equity-settled employee benefits reserve arises on the grant of share rights to Executives and employees under various share plans. Further information about share-based payments to Executives and employees is in note 11 to the Consolidated Financial Statements. Balance at beginning of year Reclassification to retained earnings Recognition of share-based payments (net of tax) Balance at end of year 6,933 5,855 (5,855) 3,362 1,078 4,440 6,933 24.2 CASH FLOW HEDGING RESERVE The hedge reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges. The cumulative deferred gain or loss on the hedge is recognised in profit or loss when the hedged transaction impacts the profit or loss, or is included as a basis adjustment to the non-financial hedged item, consistent with the applicable accounting policy. Balance at beginning of year Net gain/(loss) on revaluation (net of tax) Balance at end of year (913) 537 (376) (513) (400) (913) 24.3 FOREIGN CURRENCY TRANSLATION RESERVE Exchange differences relating to foreign currency monetary items forming part of the net investment in a foreign operation and the translation of foreign controlled entities are brought to account by entries made directly to the foreign currency translation reserve, as described in note 2.15 to the Consolidated Financial Statements. Balance at beginning of year Exchange differences arising on translating the foreign controlled entities Balance at end of year 2,043 (855) 1,188 (2,115) 4,158 2,043 25 RETAINED EARNINGS 2016 2015 $’000 $’000 Retained earnings 135,258 Balance at the beginning of the year Reclassification of equity settled employee benefit reserve Profit for the year Payment of dividends 87,099 66,497 5,855 - 100,008 46,556 (57,704) (25,954) Balance at end of year 135,258 87,099 87,099 BLACKMORES ANNUAL REPORT 2016 89 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 26 EQUITY ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 2016 2015 $’000 $’000 Balance at the beginning of the year Non-controlling interests arising on the incorporation of PT Kalbe Blackmores Nutrition Share of profit for the year Share of other comprehensive income Balance at end of year - - 2,301 12 17 2,330 - 27 EARNINGS PER SHARE 2016 2015 CENTS PER CENTS PER SHARE SHARE Basic earnings per share Diluted earnings per share 580.6 270.7 575.9 269.1 Basic Earnings per Share The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows: 2016 2015 $’000 $’000 Earnings (reconciles directly to profit for the year in the Consolidated Statement of Profit or Loss) 100,008 46,556 2016 2015 NUMBER NUMBER Weighted average number of ordinary shares on issue during the financial year used in the calculation of basic earnings per share 17,225,093 17,196,049 Diluted Earnings per Share Earnings and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows: 2016 2015 $’000 $’000 Earnings (reconciles directly to profit for the year in the Consolidated Statement of Profit or Loss) 100,008 46,556 2016 2015 NUMBER NUMBER Weighted average number of ordinary shares used in the calculation of basic earnings per share 17,225,093 17,196,049 Shares deemed to be issued for no consideration in respect of: Employee share plans 141,344 106,310 Weighted average number of ordinary shares and potential ordinary shares used in the calculation of diluted earnings per share 17,366,437 17,302,359 BLACKMORES ANNUAL REPORT 2016 90 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016 28 DIVIDENDS 2016 2015 CENTS PER TOTAL CENTS PER TOTAL SHARE $’000 SHARE $’000 Recognised Amounts Fully paid ordinary shares Final dividend for year ended 30 June 2015 (2015: 30 June 2014) – fully franked at 30% corporate tax rate 135 23,254 83 Interim dividend for year ended 30 June 2016 (2015: 30 June 2015) – fully franked at 30% corporate tax rate 200 34,450 68 DRP residual payments - - - 335 57,704 151 14,205 11,713 36 25,954 Unrecognised Amounts Fully paid ordinary shares Final dividend – fully franked at 30% corporate tax rate 210 36,174 The final dividend in respect of ordinary shares for the year ended 30 June 2016 has not been recognised in these Consolidated Financial Statements because the final dividend was declared subsequent to 30 June 2016. COMPANY 2016 2015 $’000 $’000 Adjusted franking account balance 21,075 19,985 29 COMMITMENTS FOR EXPENDITURE 2016 2015 $’000 $’000 Research and Development Contracts 348 145 493 158 70 228 3,906 - 3,906 9,800 9,800 3,862 5,773 9,635 1,370 2,055 3,425 Not longer than 1 year 1,198 Longer than 1 year and not longer than 5 years 5,378 6,576 1,118 1,502 2,620 Not longer than 1 year Longer than 1 year and not longer than 5 years Plant and equipment Not longer than 1 year Longer than 1 year and not longer than 5 years Promotional Services Not longer than 1 year Longer than 1 year and not longer than 5 years Sponsorship Lease Commitments BLACKMORES ANNUAL REPORT 2016 Non-cancellable operating lease commitments are disclosed in note 30 of the Consolidated Financial Statements. 91