Legal disputes 25 60 18 84 3 148 aro total 1 361 160

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Unformatted text preview: n included as a liability in the financial statements of 2011. The proposed dividend, if approved, is payable to all shareholders on the Norwegian Central Securities Depository (VPS) on 31 May 2012. The total estimated dividend to be paid is NOK 7.9 billion. Equity available for distribution as dividends from Telenor ASA was NOK 16.3 billion as of 31 December 2011. The proposed cancellation of shares will impact the equity available for distribution as dividend by NOK 2.2 billion. Non-controlling interests Non controlling Non controlling Non controlling interests in interests in interests share interests share the statement the statement of net income of net income of financial of financial (loss) 2011 (loss) 2010 position 31.12.11 position 31.12.10 NOK in millions diGi Grameenphone dTAC unitech Wireless Edb business Partner AsA Other Total 1 168 710 775 (2 625) - 24 52 1 119 413 792 (1 753) (106) 9 475 1 385 1 261 1 880 (1 736) - 120 2 910 Non-controlling interests are reduced by NOK 5 billion in 2011 due to accrued and paid dividend. During the third quarter of 2010 the Group disposed of EDB Business Partner ASA. See note 15 for further information. Non controlling 1 335 1 762 4 110 905 240 8 351 /page 57/ telenor annual report 2011 notes to the financial statements / telenor group / 26 / Provisions and obligations Non-current NOK in millions 2011 2010 86 2 612 92 122 2 911 115 1 578 104 82 1 879 NOK in millions 2011 2010 Provisions for workforce reduction, onerous (loss) contracts and legal disputes Asset retirement obligations Other provisions Total current provisions and obligations 427 9 549 986 339 16 597 953 Provisions for workforce reduction, onerous (loss) contracts and legal disputes Asset retirement obligations Provisions related to associated companies Other provisions Total non-current provisions and obligations Current Development in 2011 NOK in millions Workforce Onerous (loss) reduction contracts legal disputes As of 1 January 2011 197 110 148 Obligations arising during the year and effects of changes in estimates 1) 450 90 37 Accretion expense - - - Amounts utilised (289) (110) (54) Other changes (9) (9) (34) Translation differences - - (15) As of 31 December 2011 348 81 83 1) For asset retirement obligations, an increase of NOK 790 million is included due to decrease in long term interest rates. ARO Total 1 594 988 70 (6) (7) (17) 2 621 2 049 1 565 70 (460) (59) (32) 3 134 Development in 2010 Workforce NOK in millions reduction Onerous (loss) contracts As of 1 January 2010 231 187 Obligations arising during the year and effects of changes in estimates 1) 295 143 Accretion expense - - Amounts utilised (310) (154) Other changes (22) (62) Translation differences 3 (4) As of 31 December 2010 197 110 1) For asset retirement obligations, NOK 87 million relates to the decrease in long term interest rates. legal disputes 25 60 - (18) 84 (3) 148 ARO Total 1 361 160 63 (2) - 12 1 594 1804 658 63 (484) 8 2 049 Asset Retirement Obligations The Group has asset retirement obligations relating primarily to equipment and other leasehold improvements installed on leased network sites and in administrative and network buildings. Those leases generally contain provisions that require the Group to remove the asset and restore the sites to their original condition at the end of the lease term. The table above presents all changes in the Group’s assets retirement obligations. In most situations, the timing of the asset removals will be well into the future and there is significant uncertainty as to whether and when the obligation will be paid. The actual gross removal costs that the Group will incur may be significantly different from the estimated costs, for example due to negotiation of prices for a large amount of removals or agreements that reduce or relieve the Group from its obligations. The actual timing of the removals may also differ significantly from the estimated timing. Workforce reduction, onerous (loss) contracts and legal disputes Provisions for workforce reductions included approximately 850 employees as of 31 December 2011 and approximately 1,100 employees as of 31 December 2010. /page 58/ telenor annual report 2011 notes to the financial statements / telenor group / 27 / Pension obligations The Norwegian companies in the Group are obligated to follow the Act on Mandatory company pensions and these companies pension schemes follows the requirement as set in the Act. The Group provides pension plans for employees in Norway. In addition, the Norwegian government provides social security payments to all retired Norwegian citizens. Such payments are calculated by reference to a base amount annually approved by the Norwegian parliament (G-regulation). Benefits are determined based on the employee’s length of service and compensation. The cost of pension benefit plans is expensed over the period that the employee renders services and becomes eligible to receive benefits. Telenor Pension Fund in Norway, a defined benefit...
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This document was uploaded on 03/21/2014.

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