32. Leases
Minimum amounts receivable and payable under non-cancellable leases
| Group | ||||
| Year in which receipt or payment will occur | ||||
| 2006 | Within 1 year £m |
After 1 year but within 5 years £m |
After 5 years £m |
Total £m |
| Finance lease assets: | ||||
| Amounts receivable | 1,235 | 4,331 | 11,166 | 16,732 |
| Present value adjustment | (453) | (1,648) | (3,110) | (5,211) |
| Other movements | (22) | (80) | (295) | (397) |
| Present value amounts receivable | 760 | 2,603 | 7,761 | 11,124 |
| Operating lease assets: | ||||
| Future minimum lease receivables | 444 | 2,391 | 2,640 | 5,475 |
| Operating lease obligations: | ||||
| Future minimum lease payables: | ||||
| Premises | 332 | 1,151 | 1,877 | 3,360 |
| Equipment | 7 | 6 | — | 13 |
| 339 | 1,157 | 1,877 | 3,373 | |
| Group | ||||
| Year in which receipt or payment will occur | ||||
| 2005 | Within 1 year £m |
After 1 year but within 5 years £m |
After 5 years £m |
Total £m |
| Finance lease assets: | ||||
| Amounts receivable | 1,297 | 4,733 | 11,604 | 17,634 |
| Present value adjustment | (462) | (1,857) | (3,628) | (5,947) |
| Other movements | (26) | (136) | (231) | (393) |
| Present value amounts receivable | 809 | 2,740 | 7,745 | 11,294 |
| Operating lease assets: | ||||
| Future minimum lease receivables | 954 | 2,757 | 2,241 | 5,952 |
| Operating lease obligations: | ||||
| Future minimum lease payables: | ||||
| Premises | 310 | 1,103 | 1,700 | 3,113 |
| Equipment | 10 | 11 | — | 21 |
| 320 | 1,114 | 1,700 | 3,134 | |
| 2006 £m |
2005 £m |
|
| Nature of operating lease assets in balance sheet | ||
| Transportation | 7,414 | 7,742 |
| Cars and light commercial vehicles | 1,204 | 978 |
| Other | 291 | 333 |
| 8,909 | 9,053 | |
| Amounts recognised as income and expense (1) | ||
| Finance lease receivables – contingent rental income | (37) | (34) |
| Operating lease payables – minimum payments | 366 | 332 |
| Contracts for future capital expenditure not provided for at the year end | ||
| Operating leases | 1,437 | 594 |
| Finance lease receivables | ||
| Unearned finance income | 5,211 | 5,947 |
| Accumulated allowance for uncollectable minimum lease receivables | 67 | 72 |
Note:
(1) In the year ended 31 December 2004 contingent rental income amounted to £51 million and minimum operating lease payments amounted to £319 million.
Residual value exposures
The tables below give details of the unguaranteed residual values included in the carrying value of finance lease receivables (see page 178) and operating lease assets (see Note 18).
| Year in which residual value will be recovered | |||||
| 2006 | Within 1 year £m |
After 1 year but within 2 years £m |
After 2 years but within 5 years £m |
After 5 years £m |
Total £m |
| Operating leases | |||||
| Transportation | 1,054 | 180 | 1,339 | 2,517 | 5,090 |
| Cars and light commercial vehicles | 168 | 295 | 329 | — | 792 |
| Other | 13 | 30 | 77 | 24 | 144 |
| Finance leases | 22 | 22 | 58 | 295 | 397 |
| 1,257 | 527 | 1,803 | 2,836 | 6,423 | |
| 2005 | |||||
| Operating leases | |||||
| Transportation | 579 | 912 | 895 | 3,229 | 5,615 |
| Cars and light commercial vehicles | 612 | 115 | 77 | — | 804 |
| Other | 26 | 21 | 84 | 21 | 152 |
| Finance leases | 26 | 32 | 104 | 231 | 393 |
| 1,243 | 1,080 | 1,160 | 3,481 | 6,964 | |
The Group provides asset finance to its customers through acting as a lessor. It purchases plant, equipment and intellectual property, renting them to customers under lease arrangements that, depending on their terms, qualify as either operating or finance leases.
© 2007