Barclays 2007 Annual Report Download - page 221

3
Financial statements
Barclays PLC Annual Report 2007 219
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:
2007 2006
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 3,657 (780) 2,877 213 3,650 (734) 2,916 166
Over one year but not more
than five years 7,385 (1,613) 5,772 374 5,824 (1,490) 4,334 334
Over five years 3,476 (935) 2,541 14 3,790 (898) 2,892 15
Total 14,518 (3,328) 11,190 601 13,264 (3,122) 10,142 515
The allowance for uncollectable finance lease receivables included in the allowance for impairment amounted to £113m at 31st December 2007 (2006: £99m).
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 treated as plant and equipment in the Group’s financial statements and are generally
disposed of at the end of the lease term (see Note 23).
The future minimum lease payments expected to be received under non-cancellable operating leases at 31st December 2007 were as follows:
2007 2006
Plant and Plant and
equipment equipment
£m £m
Not more than one year 29 18
Over one year but not more than two years 24 5
Over two years but not more than three years 22 3
Over three years but not more than four years 20 3
Over four years but not more than five years 11 3
Over five years 10 7
Total 116 39
(b) As Lessee
Finance lease commitments
The Group leases items of property, plant and equipment on terms that meet the definition of finance leases. Finance lease commitments are included
within other liabilities (see Note 25).
Obligations under finance leases were as follows:
2007 2006
Total future Total future
minimum minimum
payments payments
£m £m
Not more than one year 12 6
Over one year but not more than two years 14 21
Over two years but not more than three years 13 11
Over three years but not more than four years 12 14
Over four years but not more than five years 15 9
Over five years 17 31
Net obligations under finance leases 83 92