NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the period ended 28 July 2018 A3 EXPENSES 2018 2017 52 weeks 52 weeks $'000 $'000 Profit/(loss) before income tax includes the following specific expenses: Employee benefits expenses Defined contribution superannuation expense 38,044 38,313 Other employee benefits expenses 424,178 426,161 Total employee benefits expenses 462,222 464,474 Depreciation, amortisation and write-off expense 94,006 91,480 Finance costs Interest and finance charges paid/payable 8,743 9,071 Fair value losses on interest rate swap cash flow hedges, transferred from equity 728 2,188 Finance costs expensed 9,471 11,259 Rental expense relating to operating leases Minimum lease payments 229,075 227,468 Contingent rentals 2,712 2,607 Total rental expense relating to operating leases 231,787 230,075 Net foreign exchange gains (12,085) (12,632) Restructuring and store exit costs, onerous lease expense and impairment of assets The following individually significant items are included within restructuring and store exit costs, onerous lease expense and impairment of assets in the consolidated income statement: Restructuringand redundancy costs1 9,224 6,347 Storeexit costs and other asset impairments2 7,480 48,058 Impairmentof assets3 524,486 - Support office onerous lease expense and impairment of assets4 - 11,210 541,190 65,615 Incometax benefit5 (22,713) (9,606) Restructuring and store exit costs, onerous lease expense and impairment of assets, net of tax 518,477 56,009 1. The Group has completed several restructuring programs during the period resulting in redundancy and other costs being incurred or committed but not yet paid. Refer to note C3 for more information. 2. Store exit costs and other asset impairments includes net costs associated with the announcement of store closures (Colonnades, Belconnen and Hornsby) and space optimisation during or after the end of the period that have been committed to prior to the end of the period (2017: net costs associated with store and distribution centre space optimisation, recognised an impairment of the sass & bide goodwill and brand name totalling $38.8 million and a write-down of the investment in Austradia Pty Limited of $6.8 million). Refer to note C1, C2 and C3 for more information. 3. The Group has recognised an impairment of the Myer goodwill and brand name, an impairment of the Mt Gravatt store's plant and equipment assets, and an impairment of Support Office software assets. Refer to note C2 for more information. 4. In 2017, the Group recognised a $9.1 million onerous lease provision relating to surplus space identified at the support office due to restructuring completed. This provision expense was partially offset by the write-back of the fixed lease rental increase provision and deferred income associated with this space. The assets associated with this surplus space were impaired and included in this amount. Refer to note C1 and C3 for more information. 5. Income tax benefit includes a $15.1 million benefit relating to the unwind of the deferred tax liability as a result of the impairment of the Myer brand name recognised during the period. Refer to note C2 for more information. Accounting policy The expenses disclosed above are also disclosed in the following sections of the financial statements: •Employee benefits expenses – refer to note C3 • Depreciation and amortisation expense – refer to note C1 and C2 • Finance costs – refer to note D3 and E2 • Rental expense relating to operating leases – refer to note H2 • Net foreign exchange gains – refer to note F2 Individually Significant Items Certain items have been separately disclosed and presented as individually significant based on the nature and/or impact these items have on the Group’s financial performance for the period. Myer Annual Report 2018 55