BP 2007 Annual Report Download - page 128

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15 Operating leases
The table below shows the expense for the year in respect of operating leases. Where an operating lease is entered into solely by the group as the
operator of a jointly controlled asset, the total cost is included in this analysis, irrespective of any amounts that have been or will be reimbursed by joint
venture partners. Where BP is not the operator of a jointly controlled asset, operating lease costs and future minimum lease payments are excluded
from the information given below.
$ million
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2007 2006 2005
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Minimum lease payments 4,152 3,647 2,743
Contingent rentals 105 13 (6)
Sub-lease rentals (191) (131) (114)
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4,066 3,529 2,623
Innovene operations ––(49)
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Continuing operations 4,066 3,529 2,574
In addition to the above, where operating lease costs are incurred in relation to the hire of equipment used in connection with a capital project, some
or all of the cost may be capitalized as part of the capital cost of the project. For 2007, $1,300 million (2006 $895 million) of the cost for the year has
been capitalized.
The future minimum lease payments at 31 December, before deducting related rental income from operating sub-leases of $618 million (2006 $626
million and 2005 $718 million), are shown in the table below. This does not include future contingent rentals. Where the lease rentals are dependent
on a variable factor, the future minimum lease payments are based on the factor as at inception of the lease.
$ million
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Future minimum lease payments 2007 2006
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Payable within
1year 3,780 3,428
2 to 5 years 7,660 8,440
Thereafter 5,498 5,684
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16,938 17,552
The following additional disclosures represent the net operating lease expense and net future minimum lease payments, after deducting amounts
reimbursed, or to be reimbursed, by joint venture partners.
Where BP is not the operator of a jointly controlled asset, operating lease costs and future minimum lease payments are excluded from the
information given below.
$ million
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2007 2006 2005
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Minimum lease payments 3,100 2,924 1,847
Contingent rentals 80 13 (6)
Sub-lease rentals (183) (131) (110)
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2,997 2,806 1,731
Innovene operations ––(49)
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Continuing operations 2,997 2,806 1,682
$ million
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Future minimum lease payments 2007 2006
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Payable within
1year 2,826 2,732
2 to 5 years 6,519 7,290
Thereafter 5,050 5,221
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14,395 15,243
The group enters into operating leases of ships, plant and machinery, commercial vehicles and land and buildings. Typical durations of the leases are
as follows:
Years
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Ships up to 20
Plant and machinery up to 10
Commercial vehicles up to 15
Land and buildings up to 40