Page 109 - EVRY Annual Report 2012

Annual Accounts Group 109
Significant lease agreements
Mainframe platform
EVRY continues to invest in its mainframe platform, and in late 2012 upgraded its machine park with the most
advanced technology and additional capacity. The new equipment is supplied on an operational lease by IBM Global
Finance. The platform has a long technical life, subject to cyclical updating when new models are released in the
future. The lease agreement can be adjusted to accommodate new upgrades. The total financial cost and unit costs
show a falling trend when upgrading to new models. EVRY has an option to purchase the equipment at market
value at a future date.
Premises lease, Skøyen, Oslo
The lease expires in 2019. The rent is increased annually in line with CPI. Rental payments are based on total m2. The
tenant is responsible for maintaining the interior of the premises at the original standard. The agreement may be
extended by three further periods, each of 5 years.
Premises lease, Nydalen, Oslo
The lease expires in 2018. The rent is increased annually in line with CPI. Rental payments are based on total m2. The
tenant is responsible for maintaining the interior of the premises at the original standard. The agreement may be
terminated in 2013. The agreement is closed as of March 31 2014.
Premises lease, Solna, Sweden
The lease expires in 2016. The rent is increased annually in line with CPI. Rental payments are based on total m2. The
tenant is responsible for maintaining the interior of the premises at the original standard.
Premises lease, Sandslimarka, Bergen
The lease expires in 2018. The rent is increased annually in line with CPI. Rental payments are based on total m2. The
tenant is responsible for maintaining the interior of the premises at the original standard.
Ground rent lease, Horten
Ground rent lease with Horten Næringspark with a term of 80 years. Ground rent payments are adjusted every 10
years in line with CPI.
Financial lease agreement, Gjøvik
The group has entered into a financial lease agreement for its underground data hall at Gjøvik. The premises are
leased from Industribygg AS. The company has the right to assume ownership of the premises at any time upon
payment of the remaining balance, or will assume ownership in 2023 without payment.
Premises lease, Fornebu, Bærum
The company has decided to lease new headquarters premises at Snarøyveien 30 in Bærum. It has signed a 10-year
lease agreement that commences on 1 January 2014. The company will be responsible for internal maintenance of
the premises, and the lease rental will be calculated on the basis of area with annual adjustment for inflation. The
premises amount to 33,000 m2.
Classification of financial instruments
and determination of fair value
Fair value hierarchy
Financial instruments that are valued at fair value in the statement of financial position are grouped on the basis of
the following fair value hierarchy, which applies three levels/groups for financial instruments. The levels/groups
reflect the information used for the determination of fair value.
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: Instruments for which observable information is available, but for which there is no active market.
Level 3: Instruments for which there is no observable market data and the determination of fair value accordingly
uses company specific/subjective information.
Note 21