91 AGL Energy Limited Annual Report 2011 Significant terms and conditions Environmental restoration Restructuring Onerous contracts Note 30 – Provisions (non-current) In September 2010, the consolidated entity issued US$300.0 million of fixed rate unsecured senior notes in the US private placement  market, comprising two tranches of 12 year and 15 year maturities for US$165.0 million and US$135.0 million, respectively. To manage the  foreign exchange risk arising from the future principal and interest payments required on the US$300.0 million, the notes were converted  back to A$337.8 million through cross currency interest rate swaps. The weighted average interest rate at the end of the reporting period  was 7.67%. Finance lease liabilities are secured over the assets leased. Movements in each class of provision, except employee benefits are set out below: A provision for environmental restoration is recognised when there is a present obligation as a result of exploration, development and  production activities having been undertaken, and it is probable that an outflow of economic benefits will be required to settle the  obligation. The estimated future obligations include the costs of removing facilities and restoring the affected areas. A restructuring provision is recognised when the consolidated entity has developed a detailed formal plan for the restructuring and has  raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main  features to those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the  restructuring, which are those amounts that are both necessarily entailed by the restructuring and not associated with the ongoing  activities of the entity. A provision for onerous contracts is recognised where the consolidated entity has a contract under which the unavoidable costs of meeting  the obligations under the contract exceed the economic benefits expected to be received under it. 2011 2010 $m $m Note 29 – Borrowings (non-current) At amortised cost USD senior notes – unsecured  274.4 – Bank loans – unsecured  – 886.7 Finance lease liabilities – secured (Note 38)  11.9 10.6 Other loans – unsecured  – 3.5 Deferred borrowing costs  (1.8) – 284.5 900.8 Employee benefits  7.4 5.9 Environmental restoration  49.6 39.2 Onerous contracts  104.6 117.3 Other  – 0.1 161.6 162.5 Environmental Onerous restoration Restructuring contracts Other Total $m $m $m $m $m Year ended 30 June 2011 Balance at beginning of financial year  39.2 – 138.2 2.5 179.9 Additional provisions recognised  10.8 12.9 – 0.5 24.2 Acquisitions through business combinations  5.5 – 2.3 – 7.8 Provisions utilised  (0.1) – (23.1) (0.1) (23.3) Provisions reversed  – – (0.9) (1.7) (2.6) Unwinding of discount  2.4 – 9.0 – 11.4 Balance at end of financial year  57.8 12.9 125.5 1.2 197.4 Current  8.2 12.9 20.9 1.2 43.2 Non-current  49.6 – 104.6 – 154.2 57.8 12.9 125.5 1.2 197.4