Notes to the consolidated annual financial statements | Note 24

Notes to the consolidated annual financial statements | Note 24

for the year ended 31 March
 
Rm
2011
  
2010
  
2009
           

24.

Commitments

          
Operating leases (Note 24.1) 4 677   4 070   3 534
Transmission and data lines (Note 24.2) 4 774   6 270   6 643
Capital expenditure contracted for but not yet incurred (Note 24.3) 2 5471   2 2131   2 214
Capital expenditure approved by the Board but not yet contracted for (Note 24.3) 8 4711   6 3641   9 712
Other (Note 24.4) 3 314   1 760   2 038
24.1 Operating leases          
Future minimum lease payments under non-cancellable operating leases comprise:          
Within one year 980   783   794
Between one and five years 2 720   2 169   1 968
After five years 977   1 118   772
  4 677   4 070   3 534
 
Note:
1. Capital expenditure approved for the 2012 financial year at forecasted exchange rates, limited to R8 844 million (2010: R7 375 million), was translated at the closing rates as at the reporting date. 
   
  Operating leases include leases of certain transmission and data lines, offices, distribution outlets, sites, buildings, office equipment and motor vehicles. The remaining lease terms vary between one and 19 years (2010: six months and 18 years; 2009: one and 18 years) with escalation clauses that vary from an annual fixed escalation rate between 2.0% and 12.0% (2010: 3.5% and 12.0%; 2009: 3.0% and 12.0%) per annum or an annual variable consumer price index rate. Various options to renew exist.

The total of future minimum sublease payments expected to be received under non-cancellable subleases is R326 million (2010: R267 million; 2009: R356 million).
 

24.2

Transmission and data lines
  Some of the Group's transmission and data line commitments are not classified as operating leases. The commitments are for the duration of the initial period which varies between one and five years depending on the option chosen. 
 

24.3

Capital commitments
  Capital commitments for property, plant and equipment and computer software will be financed through internal cash generation, extended supplier credit and bank credit. 
 

24.4

Other
  Other includes sport, marketing, functions, events, retention incentives, activation bonuses, activation commissions, other accommodation, licence, handset purchase and other purchase commitments. 
 

24.5

Unquantifiable commitments
  The Group has the following commitments which have not been quantified as the amounts are dependent on unknown future factors: 
   
24.5.1
Global alliance fee
  The Group pays annual fees for services provided to the Group by Vodafone Group Plc calculated as a percentage of revenue. 
   
24.5.2
Other
  The Group has various other unquantifiable commitments under service contracts and licence agreements which are in the normal course of business. 

© 2010 Vodacom (Pty) Limited.