Unilever 2014 Annual Report Download - page 87
Download and view the complete annual report
Please find page 87 of the 2014 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.20 OMMITMENTS AND ONTINENT LIABILITIES
Leases are classfed as fnance leases whenever the terms of the lease transfer substantally all the rsks and rewards of
ownershp All other leases are classfed as operatng leases
Assets held under fnance leases are ntally recognsed at the lower of far value at the date of commencement of the lease and the
present value of the mnmum lease payments Subsequent to ntal recognton, these assets are accounted for n accordance wth
the accountng polcy relatng to that specfc asset The correspondng lablty s ncluded n the balance sheet as a fnance lease
oblgaton Lease payments are apportoned between fnance costs n the ncome statement and reducton of the lease oblgaton
so as to acheve a constant rate of nterest on the remanng balance of the lablty
Lease payments under operatng leases are charged to the ncome statement on a straght-lne bass over the term of the lease
ontngent labltes are ether possble oblgatons that wll probably not requre a transfer of economc benefts, or present
oblgatons that may, but probably wll not, requre a transfer of economc benefts It s not approprate to make provsons for
contngent labltes, but there sa chance that they will result in an obligation in the future.
Long-term fnance lease commtments
mllon
Future
mnmum
lease
payments
2014
mllon
Fnance
cost
2014
mllon
Present
value
2014
€ million
Future
minimum
lease
payments
2013
€ million
Finance
cost
2013
€ million
Present
value
2013
Buildings(a) 283 102 181 290 103 187
Plant and machinery 22 4 18 22 517
305 106 199 312 108 204
The commitments fall due as follows:
Within 1 year 25 12 13 25 10 15
Later than 1 year but not later than 5 years 108 36 72 107 36 71
Later than 5 years 172 58 114 180 62 118
305 106 199 312 108 204
(a) All leased land is classified as operating leases.
The table below shows the net book value of property, plant and equipment under a number of finance lease agreements.
Net book value
mllon
Buldngs
mllon
Plant and
equpment
mllon
Total
Cost 218 148 366
Accumulated depreciation (69) (124) (193)
31 December 2014 149 24 173
Cost 211 141 352
Accumulated depreciation (57) (119) (176)
31 December 2013 154 22 176
The Group has sublet part of the leased properties under finance leases. Future minimum sublease payments of €38 million
(2013: €30 million) are expected to bereceived.
Long-term operatng lease commtments
mllon
2014
€ million
2013
Land and buildings 1,903 1,328
Plant and machinery 424 459
2,327 1,787
Operatng lease and other commtments fall due as follows
mllon
Operatng
leases
2014
€ million
Operating
leases
2013
mllon
Other
commt-
ments
2014
€ million
Other
commit-
ments
2013
Within 1 year 390 335 1,034 906
Later than 1 year but not later than 5 years 1,171 913 950 778
Later than 5 years 766 539 41 25
2,327 1,787 2,025 1,709
124 Unilever Annual Report and Accounts 2014Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED