Tesco 2009 Annual Report Download - page 124

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122 FINANCIAL STATEMENTS
Tesco PLC Annual Report and Financial Statements 2009
Note 37 Leasing commitments
Finance lease commitments – Group as lessee
The Group has finance leases for various items of plant, equipment, fixtures and fittings. There are also a small number of buildings which are held
under finance leases. The fair value of the Group’s lease obligations approximate to their carrying value.
Future minimum lease payments under finance leases and hire purchase contracts, together with the present value of the net minimum lease payments
are as follows:
Present value of
Minimum lease payments minimum lease payments
2009 2008 2009 2008
£m £m £m £m
Within one year 55 62 47 51
Greater than one year but less than five years 140 181 114 156
After five years 172 130 82 59
Total minimum lease payments 367 373 243 266
Less future finance charges (124) (107)
Present value of minimum lease payments 243 266
Analysed as:
Current finance lease payables 47 51
Non-current finance lease payables 196 215
243 266
Finance lease receivables – Group as lessor
In 2006, the Group entered into finance leasing arrangements with UK staff for certain of its electronic equipment as part of the Computers for Staff
scheme. The average term of finance leases entered into was three years and these all expired in 2008. The interest rate inherent in the leases was fixed
at the contract date for all of the lease term. The average effective interest rate contracted approximated to 2.6% per annum. The fair value of the
Group’s finance lease receivables at 23 February 2008 was £5m.
Future minimum lease receivables under finance leases together with the present value of the net minimum lease receivables are as follows:
Present value of
Minimum lease payments minimum lease payments
2009 2008 2009 2008
£m £m £m £m
Within one year – 5 – 5
Net finance lease receivables – 5 – 5
Notes to the Group financial statements continued