TomTom 2009 Annual Report Download - page 87

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OF TOMTOM NV
28. PENSION ACCRUALS
(€ in thousands) 2009 2008
Opening balance at 1 January 5,012 0
Acquisition of subsidiary 05,150
Amounts charged / released to the income statement 1,412 127
Utilised -1,208 -265
Closing balance at 31 December 5,216 5,012
Pension liabilities relate to the Tele Atlas defined benefit plan in Germany and the staff leaving indemnity plan in
Italy. There are no plan assets in relation to these plans. The defined benefit plan assumes a discount rate of 5.7%
(2008: 6.4%), a rate of salary increase of 3.0% (2008: 3.0%) and German mortality rates.
29. COMMITMENTS AND CONTINGENT LIABILITIES
The group has long-term financial commitments, which are not shown in the group’s balance sheet as at
31 December 2009.
Operating leases
These are operating leases for buildings, cars and office equipment, which consist of:
(€ in thousands) 2009 2008
Commitments less than 1 year 20,298 16,850
Commitments between 1 – 5 years 46,657 43,508
Commitments longer than 5 years 6,604 17,256
73,559 77,614
No discount factor is used in determining the operating lease commitments.
Purchase commitments
As at 31 December 2009, the group had open purchase commitments with our contract manufacturers for certain
products and components. Based on our forecasts of the number of units we will require, our contract
manufacturers order the requisite component parts from their suppliers. Our manufacturers have commitments
on these components. In certain circumstances, we have a contractual obligation to purchase these components
from our manufacturers.
Other commitments
The group has contracts with 3rd party suppliers or other business partners that include minimum royalty or
revenue share payments over the duration of the contracts which range from 2 to 5 years. The total commitments
under these contracts are presented below.
(€ in thousands) 2009 2008
Commitments less than 1 year 18,918 17,960
Commitments between 1 – 5 years 37,823 54,385
Commitments longer than 5 years 200 600
56,941 72,945
Contingencies
Please refer to note 26 for disclosures on tax and legal contingencies.
Based on legal advice, there were no other contingencies that management expects to have a material adverse
effect on the group’s financial position as of 31 December 2009.