SEC Form 20-IS - iRemit Global Remittance

- 47 -
(f) On July 1, 2011, the Parent Company entered into a sublease agreement with Surewell
Equities Pte Ltd., one of the stockholders of the Parent Company, for the use of the latter’s
office space in Singapore for an initial term of two (2) years.
The subsidiaries have their respective operating lease agreements for their office spaces. The
lease contracts are for periods ranging from 1 to 10 years and may be renewed under the terms and
conditions mutually agreed upon by the subsidiaries and the lessors.
Rent expense of the Group amounted to P=57.43 million, P=50.38 million, and P=39.33 million in
2011, 2010 and 2009, respectively. P=3.92 million and P=4.02 million of the total rent expense
pertain to rent expense of the discontinued operations of Italy for the years ended
December 31, 2011 and 2010, respectively.
Future minimum rentals payable under non-cancelable operating leases are as follows:
2011 2010
Within one year P=43,590,836 P=51,662,348
After one year but not more than five years 53,212,917 71,152,989
P=96,803,753 P=122,815,337
In 2007, WEPL subleased its office space in Liverpool for a period of 20 months commencing on
August 2007 to April 2009.
21. Marketing Expenses
This account consists of:
2011 2010 2009
Marketing and promotions P=27,746,400 P=34,637,750 P=22,120,718
Advertising and publicity 9,617,140 8,883,266 10,856,700
P=37,363,540 P=43,521,016 P=32,977,418
Expenses amounting to P=1.02 million and P=0.93 million pertain to the marketing expenses of the
discontinued operations of Italy for the years ended December 31, 2011 and 2010, respectively
(see Note 28).
22. Other Operating Expenses
This account consists of:
2011 2010 2009
Taxes and licenses P=9,020,616 P=7,910,719 P=4,531,430
Repairs and maintenance 4,770,543 4,902,356 4,634,302
Association dues 3,230,078 1,927,949 2,066,643
Business development 2,974,651 2,679,500 943,210
Fines and penalty 2,992,353 − −
Disallowance of input VAT by BIR 2,058,616 – 1,338,804
Insurance 1,974,703 1,835,663 1,726,711
Donations and contributions – 1,155,280 1,209,115
Other charges − − 4,982,042
Miscellaneous 1,213,551 652,704 1,730,305
P=28,235,111 P=21,064,171 P=23,162,562
*SGVMC116502*