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116 Vodafone Group Plc Annual Report 2006
Notes to the Consolidated Financial Statements
continued
30. Commitments
Operating lease commitments
The Group has entered into commercial leases on certain properties, network infrastructure, motor vehicles and items of machinery. The leases have various terms, escalation
clauses, purchase options and renewal rights.
Future minimum lease payments under non-cancellable operating leases comprise:
2006 2005
£m £m
Within one year 654 662
In more than one year but less than two years 509 456
In more than two years but less than three years 447 403
In more than three years but less than four years 397 351
In more than four years but less than five years 345 305
In more than five years 1,292 1,170
3,644 3,347
In addition to the amounts disclosed above as at 31 March 2006, there were additional operating lease commitments of £120 million relating to the Group’s discontinued
operations in Japan, which were sold on 27 April 2006.
The total of future minimum sublease payments expected to be received under non-cancellable subleases is £60 million (2005: £51 million).
Capital and other financial commitments Group Share of joint ventures
2006 2005 2006 2005
£m £m £m £m
Contracts placed for future capital expenditure not provided in the financial statements:(1)(2) 651 656 162 121
Purchase commitments(2) 996 1,201 163 80
Share purchase programme –565 ––
Purchase of MobiFon and Oskar –1,858 ––
Purchase of Telsim(3) 2,600 –––
4,247 4,280 325 201
Notes:
(1) Commitment includes contracts placed for property, plant and equipment and intangible assets.
(2) In addition to the amounts disclosed above as at 31 March 2006, there were additional commitments of £90 million for future capital expenditure and £368 million other purchase commitments relating to the Group’s discontinued operations in Japan,
which were sold on 27 April 2006.
(3) In addition to the consideration price of $4.67 billion (approximately £2.6 billion), the Group will be required to pay approximately $0.4 billion of VAT which will be recoverable against Telsim's future VAT liabilities. The Group expects to recover this
payment over the short to medium term.