| TeliaSonera as lessee |
| Finance leases |
| The Group's finance leases concerns computers and other IT equipment, production vehicles, company cars to employees, and other vehicles. There is no subleasing. |
| The carrying value of the leased assets as of the balance sheet date was as follows. |
|
|
| December 31, |
|---|
| Cost |
|
| 665 | 799 |
|---|
| Less accumulated depreciation |
|
| -477 | -545 |
|---|
| Net carrying value of finance lease agreements |
|
| 188 | 254 |
|---|
| Depreciation and impairment losses totaled SEK 84 million and SEK 185 million for the years 2007 and 2006, respectively. Leasing fees paid in these years totaled SEK 82 million and SEK 185 million, respectively. |
| As of December 31, 2007, future minimum leasing fees and their present values as per finance lease agreements that could not be canceled in advance and were longer than one year in duration were as follows. |
| 2008 |
|
| 58 | 55 |
|---|
| 2009 |
|
| 35 | 32 |
|---|
| 2010 |
|
| 19 | 17 |
|---|
| 2011 |
|
| 12 | 10 |
|---|
| 2012 |
|
| 5 | 4 |
|---|
| Later years |
|
| 12 | 10 |
|---|
| Total |
|
| 141 | 128 |
|---|
| As of the balance sheet date, the present value of future minimum leasing fees under non-cancelable finance lease agreements was as follows. |
|
|
| December 31, |
|---|
| Total future minimum leasing fees |
|
| 141 | 208 |
|---|
| Less interest charges |
|
| -13 | -20 |
|---|
| Present value of future minimum leasing fees |
|
| 128 | 188 |
|---|
| Operating leases |
| TeliaSonera's operating lease agreements primarily concern office space, technical sites, land, computers and other equipment. Certain contracts include renewal options for various periods of time. Subleasing consists mainly of office premises. |
| Future minimum leasing fees under operating lease agreements in effect as of December 31, 2007 that could not be canceled in advance and were in excess of one year were as follows. |
| 2008 |
|
| 1,797 | 27 |
|---|
| 2009 |
|
| 1,455 | 10 |
|---|
| 2010 |
|
| 1,111 | 6 |
|---|
| 2011 |
|
| 866 | 1 |
|---|
| 2012 |
|
| 794 | - |
|---|
| Later years |
|
| 2,033 | - |
|---|
| Total |
|
| 8,056 | 44 |
|---|
| In 2007 and 2006, total rent and leasing fees paid were SEK 2,678 million and SEK 2,128 million, respectively. In these years, revenue for subleased items totaled SEK 27 million and SEK 46 million, respectively. |
| At the end of 2007, office space and technical site leases covered approximately 682,000 square meters, including approximately 5 000 square meters of office space for TeliaSonera's principal executive offices, located at Sturegatan 1 in Stockholm, Sweden. Apart from certain short-term leases, leasing terms range mainly between 3 and 21 years with an average term of approximately 6 years. All leases have been entered into on conventional commercial terms. Certain contracts include renewal options for various periods of time. |
| TeliaSonera as lessor |
| Finance leases |
| The leasing portfolio of TeliaSonera's customer financing operations in Sweden, Finland and Denmark comprises financing of products related to TeliaSonera's product offerings. The term of the contract stock is approximately 13 quarters. The term of new contracts signed in 2007 is 12 quarters. Of all contracts, 81 percent carry a fixed interest rate and 19 percent a floating rate. Most contracts include renewal options. In Finland, TeliaSonera also under a finance lease agreement provides electricity meters with SIM cards for automated reading to a power company as part of TeliaSonera's service package. The term of the agreement is 15 years and carries a fixed interest rate. |
| As of the balance sheet date, the present value of future minimum lease payment receivables under non-cancelable finance lease agreements was as follows. |
|
|
| December 31, |
|---|
| Gross investment in finance lease contracts |
|
| 1,125 | 848 |
|---|
| Less unearned finance revenues |
|
| -188 | -129 |
|---|
| Net investment in finance lease contracts |
|
| 937 | 719 |
|---|
| Less: Unguaranteed residual values of leased properties for the benefit of the lessor |
|
| -3 | -0 |
|---|
| Present value of future minimum lease payment receivables |
|
| 934 | 719 |
|---|
| As of December 31, 2007, the gross investment and present value of receivables relating to future minimum lease payments under non-cancelable finance lease agreements were distributed as follows. |
| 2008 |
|
| 270 | 257 |
|---|
| 2009 |
|
| 208 | 183 |
|---|
| 2010 |
|
| 130 | 110 |
|---|
| 2011 |
|
| 63 | 51 |
|---|
| 2012 |
|
| 47 | 36 |
|---|
| Later years |
|
| 407 | 297 |
|---|
| Total |
|
| 1,125 | 934 |
|---|
| Reserve for doubtful receivables regarding minimum lease payments totaled SEK 6 million as of December 31, 2007. Credit losses on leasing receivables are reduced by gains from the sale of equipment returned. |
| Operating leases |
| The leasing portfolio refers to the international carrier business and includes some twenty agreements with other international operators and over 100 other contracts. Contract periods range between 10 and 25 years, with an average term of 20 years. |
| The carrying value of the leased assets as of the balance sheet date was as follows. |
|
|
| December 31, |
|---|
| Cost |
|
| 3,689 | 3,390 |
|---|
| Less accumulated depreciation |
|
| -2,211 | -1,799 |
|---|
| Less accumulated impairment losses |
|
| -300 | -300 |
|---|
| Gross carrying value |
|
| 1,178 | 1,291 |
|---|
| Plus prepaid sales costs |
|
| 2 | 2 |
|---|
| Less prepaid lease payments |
|
| -800 | -722 |
|---|
| Net value of operating lease agreements |
|
| 380 | 571 |
|---|
| Depreciation and impairment losses totaled SEK 346 million in 2007 and SEK 330 million in 2006. |
| Future minimum lease payment receivables under operating lease agreements in effect as of December 31, 2007 that could not be canceled in advance and were in excess of one year were as follows. |
| 2008 |
|
|
| 242 |
|---|
| 2009 |
|
|
| 138 |
|---|
| 2010 |
|
|
| 117 |
|---|
| 2011 |
|
|
| 28 |
|---|
| 2012 |
|
|
| 18 |
|---|
| Later years |
|
|
| 21 |
|---|
| Total |
|
|
| 564 |
|---|
