Telus 2011 Annual Report Download - page 162

158 . TELUS 2011 ANNUAL REPORT
22 COMMITMENTS AND CONTINGENT LIABILITIES
Summary review of lease obligations, contingent liabilities, claims and lawsuits
Of the amount in respect of land and buildings, as at December 31,
2011, approximately 56% (December 31, 2010 – 57%; January 1, 2010 –
55%) of this amount was in respect of the Company’s five largest leases,
all of which were for office premises over various terms, with expiry
dates that range from 2016 to 2026.
(b) Concentration of labour
In 2010, TELUS commenced collective bargaining with the Telecommu-
nications Workers Union to renew the collective agreement which expired
November 19, 2010; the expired contract covered approximately 31% of
the Company’s workforce as at December 31, 2010.
On April 11, 2011, the Telecommunications Workers Union and the
Company reached a tentative agreement for a collective agreement sub-
ject to ratification by members of the Telecommunications Workers Union.
On June 7, 2011, the Telecommunications Workers Union announced
that its members voted to accept the April 11, 2011, tentative agreement.
The terms and conditions of the new collective agreement are effective
from June 9, 2011, to December 31, 2015; the contract covered approx-
imately 27% of the Company’s workforce as at December 31, 2011.
(a) Leases
The Company occupies leased premises in various centres and has land, buildings and equipment under operating leases. As set out in Note 19(b),
the Company has consolidated administrative real estate and, in some instances, this has resulted in sub-letting land and buildings. The future minimum
lease payments under finance leases and operating leases are as follows:
Operating lease payments
Operating
Land and buildings(1) Vehicles
lease receipts
Occupancy and other from sub-let land
Years ending December 31 (millions) Rent costs Gross equipment Total and buildings
2012 $ 179 $ß 92 $ 271 $ß16 $ 287 $ß 11
2013 165 88 253 8 261 14
2014 151 80 231 4 235 21
2015 136 76 212 3 215 20
2016 123 73 196 1 197 18
Thereafter 665 466 1,131 – 1,131 82
Total future minimum lease payments
as at December 31, 2011 $ß1,419 $ß875 $ß2,294 $ß32 $ß2,326 $ß166
(1) Subsequent to December 31, 2011, the Company entered into a lease for its new national headquarter premises from a real estate joint venture as set out in Note 17(b); the associated
operating lease payments, totalling $163 (including occupancy costs of $63), have not been included in this table.
Operating lease payments
Operating
Finance Land and buildings Vehicles
lease receipts
lease Occupancy and other from sub-let land
Years ending December 31 (millions) payments Rent costs Gross equipment Total and buildings
2011 $ß8 $ 169 $ß 96 $ 265 $ß20 $ 285 $ß 7
2012 – 153 88 241 12 253 12
2013 – 142 87 229 6 235 12
2014 – 129 83 212 2 214 12
2015 – 118 81 199 1 200 12
Thereafter – 661 484 1,145 1 1,146 15
Total future minimum lease payments
as at December 31, 2010 8 $ß1,372 $ß919 $ß2,291 $ß42 $ß2,333 $ß70
Less imputed interest 1
Finance lease liability $ß7