TDC Group Annual Report 2011(6,4MB) - TDC Annual Report 2011

TDC Group Annual Report 2011
Note 37 Other financial commitments DKKm
2011 2010
Lease commitments for all operating leases
Rental expense relating to properties and mobile sites in the period of interminability 7,714 7,835
Rental expense relating to machinery, equipment, computers, etc. in the period of interminability 724 796
Total 8,438 8,631
which can be specified as follows:
Due not later than 1 year 807 831
Due later than 1 year and not later than 5 years 2,101 2,152
Due later than 5 years 5,530 5,648
Total 8,438 8,631
Total rental expense for the year for all operating leases
Lease payments 1,129 1,117
Sublease payments (36) (18)
Total 1,093 1,099
Capital and purchase commitments
Investments in intangible assets 20 67
Investments in property, plant and equipment 154 131
Commitments related to outsourcing agreements 518 1,289
Other purchase commitments 393 330
Operating leases, for which TDC is the lessee, are related
primarily to agreements on fibre networks, sea cables, cars
and agreements on property leases and mobile sites. The
lease agreements terminate in 2037 at the latest.
Note 38 Contingencies
Contingent assets
In June 2001, the Danish partnership DPTG I/S, which is
owned by GN Store Nord A/S (with 75%) and TDC (with
25%), initiated arbitration proceedings against
Telekomunikacja Polska S.A. (TPSA) claiming that DPTG is
entitled to receive a revenue share of 14.8% of all traffic
routed via the North South Link (NSL), an optical fibre cable
delivered to TPSA in 1994. DPTG was claiming
approximately DKK 5,000m including interest for
unaccounted traffic revenue from February 1994 to June
2004. On 3 September 2010, DPTG I/S was awarded DKK
2,941m including interest by an arbitration court in Vienna.
At 31 December 2011 TPSA had still not yet paid the
amount awarded and DPTG therefore applied for
declaration of acknowledgement of the arbitration award to
the District Court in Warsaw and started enforcement in
other countries. TPSA filed an action in Austria to set aside
the arbitration award.
Total future minimum sublease payments expected for
interminable subleases on balance sheet dates amounted
to DKK 85m at 31 December 2011, compared with DKK
33m at 31 December 2010.
In addition to the claim for unaccounted traffic revenue
from February 1994 to June 2004, on 14 January 2011,
DPTG filed a claim against TPSA for unaccounted traffic
revenue in the period from July 2004 to January 2009. The
claim including interest amounts to DKK 2,386m.
TDC had not yet recognised the potential income at 31
December 2011 as the realisation of the income was not
considered virtually certain.
On 12 January 2012, DPTG entered into a settlement
agreement with TPSA. According to the settlement
agreement, TPSA pays EUR 550m equivalent to DKK 4.1bn
as full and final settlement of all claims under the dispute.
Of these TDC receives DKK 1.0bn. After tax the amount is
equivalent to approximately DKK 770m.
The settlement amount was received with EUR 275m on 13
January 2012 and EUR 275m on 19 January 2012.
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