Telstra 2009 Annual Report Download - page 209

Telstra Corporation Limited and controlled entities
194
Notes to the Financial Statements (continued)
(g) Other disclosures for jointly controlled and associated entities
The movements in the consolidated equity accounted amount of our
jointly controlled and associated entities are summarised as follows:
(i) Our jointly controlled entity, FOXTEL, has other commitments
amounting to approximately $3,812 million (2008: $3,655 million).
The majority of our 50% share of these commitments relate to
minimum subscriber guarantees (MSG) for pay television
programming agreements. These agreements are for periods of
between 1 and 25 years and are based on current prices and costs
under agreements entered into between the FOXTEL Partnership and
various other parties. These minimum subscriber payments fluctuate
in accordance with price escalation, as well as foreign currency
movements. In addition to our MSG, FOXTEL has other commitments
including obligations for satellite transponder costs and digital set top
box units.
(ii) Our jointly controlled entity, 3GIS Partnership, has other
commitments amounting to $232 million (2008: $260 million). The
majority of our 50% share of these commitments relate to property
leases. These leases are for periods of between 5 and 30 years and are
based on future property payments under agreements entered into
between the 3GIS Partnership and various other parties.
Under the Telstra Network Access Contract dated 6 December 2004,
we are charged a 3G Network Access Charge that includes our 50%
share of the Partnerships operational expenditure. As we are
obligated through this agreement to fund our share of the
Partnerships operating expenditure we are also responsible for our
share of its expenditure commitments.
26. Investments in jointly controlled and associated entities (continued)
Jointly controlled
entities Associated entities
Telstra Group Telstra Group
Year ended/As at Year ended/As at
30 June 30 June
2009 2008 2009 2008
Note $m $m $m $m
Carrying amount of investments at beginning of year . . . . . . . . . . . . . . . . . . . 2112 15
Additional investments made during the year . . . . . . . . . . . . . . . . . . . . . . . . . --11
2113 16
Share of net profits/(losses) for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --3(1)
Share of foreign currency translation reserve and movements due to exchange rate
translations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11--
Dividends received. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --(2) -
Sale, transfers and reductions of investments during the year . . . . . . . . . . . . . . . --(3) -
Carrying amount of investments before reduction to recoverable amount . . . . . . . . 3211 15
Impairment losses reversed/(recognised) during the year . . . . . . . . . . . . . . . . . . --2(3)
Carrying amount of investments at end of year . . . . . . . . . . . . . . . . . . . . . .12 3213 12
Our share of contingent liabilities of jointly controlled and associated
entities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 --
Our share of capital commitments contracted for by our jointly controlled
and associated entities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 711
Our share of other expenditure commitments contracted for by our jointly
controlled and associated entities (other than the supply of inventories) (i) (ii) . . . . . 2,043 1,983 12