TomTom 2011 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2011 TomTom annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

TomTom Annual Report and Accounts 2011
70
Notes to the Consolidated Financial Statements | continued
28. ACCRUALS AND OTHER LIABILITIES
Accruals and other liabilities comprise of the following:
(€ in thousands) 2011 2010
Deferred revenue 82,826 61,840
Margin related accruals 123,656 162,054
Operating expenses accruals 78,740 94,648
285,222 318,542
29. COMMITMENTS AND CONTINGENT LIABILITIES
The group has long-term fi nancial commitments, which are not shown in the group’s balance sheet as at 31 December 2011.
Operating leases
These are operating leases for buildings, cars and offi ce equipment, which consist of:
(€ in thousands) 2011 2010
Commitments less than 1 year 16,833 21,955
Commitments between 1 - 5 years 31,966 42,824
Commitments longer than 5 years 5,214 8,702
54,013 73,481
No discount factor is used in determining the operating lease commitments.
Purchase commitments
As at 31 December 2011, 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 third party suppliers or other business partners that include minimum royalty or revenue share payments over
the duration of the contracts that range from 1 to 5 years. The total commitments under these contracts are presented below.
(€ in thousands) 2011 2010
Commitments less than 1 year 14,372 25,641
Commitments between 1 - 5 years 19,290 37,175
33,662 62,816
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
fi nancial position as at 31 December 2011.
30. BUSINESS COMBINATIONS
No business combination transaction took place in 2011 or 2010.