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IOOF | <strong>annual</strong> <strong>report</strong> <strong>2011</strong><br />

35 Operating leases<br />

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:<br />

Consolidated Parent<br />

<strong>2011</strong> 2010 <strong>2011</strong> 2010<br />

$’000 $’000 $’000 $’000<br />

Not later than one year 9,820 11,633 - -<br />

Later than one year, not later than five years 35,417 36,847 - -<br />

Later than five years 12,042 9,290 - -<br />

57,279 57,770 - -<br />

The Group leases a number of offices premises under non-cancellable operating leases expiring between one month to ten years. The<br />

leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated.<br />

The Group also lease various office equipment under non-cancellable operating leases expiring between 1 month to 3 years. The<br />

terms of some of these lease provided the Group with the option to purchase this equipment at the conclusion of these lease<br />

agreements.<br />

36 Capital commitments<br />

On 27 June <strong>2011</strong>, the Company announced that the Company and Deakin Financial Group (DKN) had entered into an agreement<br />

under which the Company, through a wholly owned subsidiary, proposes to acquire DKN via a scheme of arrangement. The<br />

arrangement to acquire 100% of shares not already owned by the Group for $0.80 cash is subject to shareholder approval and as a<br />

result, no amounts have been recognised in the profit or loss or financial position of the Group at balance date. If accepted, the total<br />

consideration payable to shareholders is estimated at $94 million.<br />

The Group has not entered into any non-cancellable capital expenditure commitments not already recognised or provided for.<br />

37 Contingencies<br />

Consolidated Parent<br />

<strong>2011</strong> 2010 <strong>2011</strong> 2010<br />

$’000 $’000 $’000 $’000<br />

Contingent liabilities<br />

Rental bond guarantees 4,596 4,744 - -<br />

ASX settlement bond guarantee 500 500 - -<br />

ASIC bond guarantees 60 100 - -<br />

5,156 5,344 - -<br />

page 105

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