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

The effect of the settlement will be recognised in the
statement of income under special items related to income
from joint ventures and associates in Q1 2012.
Contingent liabilities
TDC is party to certain pending lawsuits and cases pending
with public authorities and complaints boards. Based on a
legal assessment of the possible outcome of each of these
lawsuits and cases, Management is of the opinion that
these will have no significant adverse effect on TDC’s
financial position.
In pursuance of Section 32 of the Danish Civil Servants Act,
the Group has a termination benefit obligation to former
Danish civil servants and to employees with civil-servant
status hired before 1 April 1970 who are members of the
related Danish pension funds. In the event of termination,
such employees have a right to special termination benefits
in the amount of three years’ salary (tied-over allowance) or
three months’ full salary and two-thirds of their full monthly
salary for four years and nine months (stand-off pay).
TDC's total termination benefits include wages during the
notice period, severance pay, stand-off pay, payments
pursuant to the Danish Salaried Employees Act, special
termination benefits (in accordance with IAS 19 Employee
Benefits), social security contributions and outplacement
costs. During 2011, the average redundancy cost per fulltime
employee equivalent was DKK 395 (2010: DKK 384)
thousand for non-civil servants, DKK 1,377 (2010: DKK
1,285) thousand for former Danish civil servants, DKK
1,330 (2010: DKK 1,321) thousand for employees with
civil-servant status or a weighted average of DKK 780
(2010: DKK 761) thousand per full-time employee
equivalent. The average redundancy cost is calculated as
the total cost in 2011 divided by the number of full-time
employee equivalents included in the redundancy
programmes during this period.
TDC Group Annual Report 2011
Change of control
The EU Takeover Directive, as partially implemented by the
Danish Financial Statements Act, contains certain rules for
the disclosure by listed companies of information on capital
and ownership structure, etc., and change-of-control
provisions in material agreements.
Information on TDC’s ownership is provided in ‘Shareholder
information'. For information on change-of-control clauses
in relation to the service contracts of management
employees, see Note 6 Wages, salaries and pensions.
In addition, the Group has other agreements to which the
Group is a party, and that take effect, are altered or
terminated upon a change of control of the Group following
implementation of a takeover bid. A change of control may
lead to termination of the agreements by the relevant
counterparties.
TDC is licensed to provide mobile telecommunications
services in Denmark. TDC has one UMTS licence to provide
3G services three GSM licences (DCS 1800, DSC6 and
GSM1) and one licence through which it has access to
2x20MHz of paired spectrum in the 2.5 GHz frequencies.
The Danish Business Authority may withdraw existing
licences if TDC does not meet the licence conditions, which
include obtaining the regulator’s consent in the event of a
change of control. In the event of a withdrawal of a licence
for any technology that is important for the provision of
TDC’s service offerings, TDC could be forced to stop using
that technology and TDC’s business, revenue and earnings
could be adversely affected.
Certain of TDC's contracts with third parties include changeof-control
clauses. A change of control could lead to
termination of such contracts. Termination of such
contracts would not individually or combined have a
material adverse effect on TDC’s revenue and earnings.
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