Telstra 2009 Annual Report Download - page 187

Telstra Corporation Limited and controlled entities
172
Notes to the Financial Statements (continued)
In addition, in fiscal 2009 the Telstra Group had total future
commitments under cancellable operating leases of $186 million
(2008: $216 million). In fiscal 2009, the Telstra Entity had total future
commitments under cancellable operating leases of $185 million
(2008: $215 million).
Description of our operating leases
We have operating leases for the following types of assets:
• rental of land and buildings;
• rental of motor vehicles, caravan huts and trailers, and mechanical
aids; and
• rental of personal computers, laptops, printers and other related
equipment that are used in non communications plant activities.
The weighted average lease term is:
• 6 years for land and buildings;
• 2 years for motor vehicles, 4 years for light commercial vehicles
and 7 to 12 years for trucks and mechanical aids; and
• 3 years for personal computers and related equipment.
The majority of our operating leases relate to land and buildings. We
have several subleases with total minimum lease payments of $19
million (2008: $22 million) for the Telstra Group and $10 million (2008:
$10 million) for the Telstra Entity. Our property operating leases
generally contain escalation clauses, which are fixed increases
generally between 3% and 5%, or increases subject to the consumer
price index or market rate. We do not have any significant purchase
options.
Contingent rental payments exist for motor vehicles and are not
significant compared with total rental payments made. These are
based on unfair wear and tear, excess kilometres travelled, additional
fittings and no financial loss to be suffered by the leasing company
from changes to the original agreements. Our motor vehicles and
related equipment must also remain in Australia.
A number of our operating leases are considered onerous due to our
transformation project and as such, have been provided for in our
financial statements. Refer to note 16 for further details.
22. Expenditure commitments
Telstra Group Telstra Entity
As at 30 June As at 30 June
2009 2008 2009 2008
$m $m $m $m
(a) Capital expenditure commitments
Total capital expenditure commitments contracted for at balance date but not
recorded in the financial statements:
Property, plant and equipment commitments
Within 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577 568 541 527
Within 1 to 5 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 21 35 7
612 589 576 534
Intangible assets commitments
Within 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 243 27 193
Within 1 to 5 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 222 163 179
244 465 190 372
(b) Operating lease commitments
Future lease payments for non-cancellable operating leases not recorded in the
financial statements:
Within 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423 413 325 329
Within 1 to 5 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,040 858 925 748
After 5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 809 363 779 327
2,272 1,634 2,029 1,404