ASC PTY LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -CONTINUED
For the year ended 30 June 2019

a. Capital expenditure commitments

b. Non-cancellable operating leases

The consolidated entity leases land, buildings, computer and other equipment under operating leases.

Operating leases includes charges from Australian Naval Infrastructure Pty Ltd (ANI) for the use of critical infrastructure assets at the ASC North site at the Osborne Naval Shipyard. The contractual arrangement with ANI is for an indeterminate period and no amounts with respect to charges from ANI have been included in operating lease commitments above.

ASC occupies the ASC South site at the Osborne Naval Shipyard under a Facilities Management Agreement which expires in December 2019. Operating lease commitments with respect to the Facilities Management Agreement are included in the note above.

c. Other commitments

The consolidated entity has commitments for expenditure in respect of contracts with subcontractors for the supply of constituent elements required under the consolidated entity's contracts with the Commonwealth of Australia. The final amount of these commitments is not quantifiable. The timing of the consolidated entity's commitments for this expenditure is matched by a corresponding receivable from the Commonwealth of Australia. These future receivables are expected to exceed the maximum value of the commitments for expenditure.