Wintec Annual Report 2009

FINANCIAL PERFORMANCE
NOTES TO THE FINANCIAL STATEMENTS (CONT)
FOR THE YEAR ENDED 31 DECEMBER 2009
18 COMMITMENTS AND CONTINGENCIES
Operating lease commitments - institute as lessee
The institute has entered into commercial leases on certain motor vehicles and items of small machinery
where it is not in the best interest of the institute to purchase these assets.
These leases have an average life of between 4 and 10 years with renewal terms included in the
contracts. Renewals are at the option of the specific entity that holds the lease.
There are no restrictions placed upon the lessee by entering into these leases.
Future minimum rentals payable under non-cancellable operating leases as at 31 December are as follows:
CONSOLIDATED
PARENT
2009 2008 2009 2008
$000 $000 $000 $000
Within one year 1,439 1,156 1,439 1,156
After one year but not more than five years 5,179 4,443 5,179 4,443
More than five years 23,140 16,510 23,140 16,510
Total non-cancellable operating leases 29,758 22,109 29,758 22,109
These commitments include the lease with Tainui for the City Campus land.
The term of the lease is 20 years with further rights of renewal of 20 years. In regards to this and the
other campus leases, it is assumed that all rights of renewal will be exercised.
Finance lease and hire purchase commitments
The Institute has no finance leases or hire purchase contracts.
Capital commitments
At 31 December 2009 the institute had commitments of $19.534 million (2008: $19.151 million).
These consisted of contracts for the Avalon Hub and F Block buildings. The work related to the capital
commitments may be ceased or varied by Wintec at any time in the event that something unforeseen
happens to Wintec’s position.
In April 2008, the institute entered into an agreement with Sports Waikato whereby it has the right to
buy the building that Sports Waikato has built on the Wintec Campus. Sports Waikato also has the right
to require the institute to buy the building. These rights are exercisable in April 2013. The purchase
price at the time will be the market value of the building with a minimum purchase price of the certified
construction cost. The minimum purchase price is included in the capital commitments figures above as
this is the most reliable estimate currently available.
Contingent assets
The Institute and group has no contingent assets (2008: Nil).
Contingent liabilities
The Institute and group has no contingent liabilities (2008: Nil).
74 _ Wintec Annual Report 2009