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## NOTEs TO THE FINANCIAL sTATEMENTs 

FAIRFAx MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 30 JUNE 2013 

## 26. COMMITMENTs 

## OPERATING LEASE COMMITMENTS– GROUP AS LESSEE 

The Group has entered into commercial leases on office and warehouse premises, motor vehicles and office equipment. Future minimum rentals payable under non-cancellable operating leases as at the period end are as follows: 

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Non-cancellable leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases can be renegotiated. The leases have remaining terms of between five and sixteen years. All property leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. 

## FINANCE LEASE COMMITMENTS– GROUP AS LESSEE 

The Group has a finance lease for property, plant and machinery with a carrying amount of $8.2 million (2012: $28.9 million). The lease has a remaining term of two years (2012: three years) and a weighted average interest rate of 13.3% (2012: 13.3%). Future minimum lease payments under the finance lease together with the present value of the net minimum lease payments are as follows: 

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## CONTINGENT RENTALS UNDER FINANCE LEASE 

A component of the finance lease payments are contingent on movements in the consumer price index. At reporting date, the rent payable over the remaining lease term of two years which is subject to such movements amounts to $10.4 million (2012: $14.4 million). 

## CAPITAL COMMITMENTS 

At 30 June 2013, the Group has commitments principally relating to the purchase of property, plant and equipment. Commitments contracted for at reporting date but not recognised as liabilities are as follows: 

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Commitments contracted at reporting date include a $29.1 million upgrade to the regional printing network. 

