Barclays 2009 Annual Report Download - page 251

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 249
37 Leasing
The Group is both lessor and lessee under finance and operating leases, providing asset financing for its customers and leasing assets for its own use.
In addition, assets leased by the Group may be sublet to other parties. An analysis of the impact of these transactions on the Group balance sheet and
income statement is as follows:
a) As Lessor
Finance lease receivables
The Group specialises in asset-based lending and works with a broad range of international technology, industrial equipment and commercial companies
to provide customised finance programmes to assist manufacturers, dealers and distributors of assets.
Finance lease receivables are included within loans and advances to customers.
The Group’s net investment in finance lease receivables was as follows:
2009 2008
Gross Present value of Gross Present value of
investment in Future minimum lease Unguaranteed investment in Future minimum lease Unguaranteed
finance lease finance payments residual finance lease finance payments residual
receivables income receivable values receivables income receivable values
£m £m £m £m £m £m £m £m
Not more than one year 3,513 (456) 3,057 55 3,929 (689) 3,240 149
Over one year but not more
than five years 7,597 (1,117) 6,480 154 8,668 (1,673) 6,995 355
Over five years 2,084 (427) 1,657 407 3,419 (768) 2,651 25
Total 13,194 (2,000) 11,194 616 16,016 (3,130) 12,886 529
The allowance for uncollectable finance lease receivables included in the allowance for impairment amounted to £321m at 31st December 2009 (2008: £189m).
Operating lease receivables
The Group acts as lessor, whereby items of plant and equipment are purchased and then leased to third parties under arrangements qualifying as operating
leases. The items purchased to satisfy these leases are included within plant and equipment (see Note 23) and are generally disposed of at the end of the
lease term.
The future minimum lease payments expected to be received under non-cancellable operating leases at 31st December 2009 were as follows:
2009 2008
Plant and Plant and
equipment equipment
£m £m
Not more than one year 10 80
Over one year but not more than two years 742
Over two years but not more than three years 736
Over three years but not more than four years 624
Over four years but not more than five years 813
Over five years 139
Total 39 234