IC Companys – Annual Report 2008/09 0 - IC Companys A/S

26. Operating leases
DKK million 30.06.2009 30.06.2008
Commitments under non-cancellable operating leases are:
Shop leases and other land and buildings:
0-1 year 217.4 211.3
1-5 years 384.0 346.3
After 5 years 57.3 62.9
Total 658.7 620.5
Lease of equipment and furniture etc.:
0-1 year 14.3 15.5
1-5 years 13.3 19.4
After 5 years - -
Total 27.6 34.9
The Group leases properties under operating leases. The lease period is typically between 3 – 10 years with an
option to extend on expiry. Many of the lease contracts contain rules regarding revenue based lease.
In addition, the Group leases cars and other operating equipment under operating leases. The lease period is typically
between 3 - 5 years with an option to extend on expiry.
An amount of DKK 286.9 million (2007/08: DKK 246.7 million) relating to operating leases has been recognised
in the consolidated income statement for 2008/09.
Some of the leased stores are sub-let to franchise stores etc., and for these the Company has received a rental
income on non-terminable leases of DKK 19.9 million (2007/08 DKK 24.2 million). The expected future minimum
rental income on non-terminable leases is DKK 52.8 million (2007/08: DKK 46.8million) for the financial years
2009/10 – 2014/15.
27. Other liabilities and contingent liabilities
DKK million 30.06.2009 30.06.2008
Guarantees and other collateral security 573.9 631.5
The Company is jointly and severally liable with the other jointly taxed Danish companies for tax on the joint taxable
income –up until 2004/05.
The Company has entered into binding agreements with suppliers on the delivery of collections until 31 December
2009, of which the majority are tied to sales orders entered into with pre-order customers.
The Parent Company’s shares in the subsidiary Raffinaderivej 10 A/S (recognised in the consolidated financial
statements with an amount of DKK 2.2 million) have been provided as security for the Group’s long-term debt in
relation to the acquisition of the property Raffinaderivej 10, amounting to DKK 168.0 million at 30 June 2009.
Carrying amount of the property amounts to DKK 158.1 million.
The Group is not currently involved in any pending litigation which may have a material effect on the Group’s financial
position.
The Group is subject to the usual return obligations imposed in the industry. Management expects no major loss
on these obligations.
The Group is regularly involved in litigation with Danish and foreign tax authorities. For an extended period of
time, IC Companys has been subject to a tax audit in one of the Group’s German companies, which has generated
a tax loss of DKK 145 million in the tax years comprised by the audit. Based on their audit, the German tax authorities
have increased the income for the years under review by DKK 130 million. The argument is that the
transfer pricing principles have not been correctly applied. IC Companys has brought the case before the Danish
tax authorities in order to obtain a corresponding adjustment and repayment of tax paid. The Danish tax authorities
have rejected this claim. Consequently, IC Companys has decided to bring the case before an EC Arbitration
Commission pursuant to the applicable rules. The relevant authorities have not reached an agreement within the
IC Companys – Årsrapport 2008/09
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