Lenovo 2014 Annual Report Download - page 187

185
2013/14 Annual Report Lenovo Group Limited
33 Commitments (continued)
(b) Commitments under operating leases
The future aggregate minimum lease payments in respect of land and buildings under non-cancelable operating leases of
the Group are as follows:
2014 2013
US$’000 US$’000
Not later than one year 63,798 65,980
Later than one year but not later than five years 162,487 184,605
Later than five years 61,784 96,025
288,069 346,610
At March 31, 2014, the Company did not have any operating lease commitments (2013: Nil).
34 Contingent liabilities
(a) The Group, in the ordinary course of its business, is involved in various claims, suits, investigations, and legal proceedings
that arise from time to time. Although the Group does not expect that the outcome in any of these legal proceedings,
individually or collectively, will have a material adverse effect on its financial position or results of operations, litigation
is inherently unpredictable. Therefore, the Group could incur judgments or enter into settlements of claims that could
adversely affect its operating results or cash flows in a particular period.
(b) The Company has executed guarantees with respect to bank facilities made available to its subsidiaries. At March 31,
2014, such facilities granted and utilized amounted to approximately US$1,865,449,000 and US$107,299,000 (2013:
US$2,680,817,000 and US$229,308,000) respectively. The utilized amount is either repayable on demand or within 1 year.
35 Reconciliation of profit before taxation to net cash generated from operations
2014 2013
US$’000 US$’000
Profit before taxation 1,014,195 801,299
Share of (gain)/loss of associates and joint ventures (9,221) 718
Finance income (33,893) (44,881)
Finance costs 80,974 42,869
Depreciation of property, plant and equipment and amortization of
prepaid lease payments 109,689 92,097
Amortization of intangible assets and share-based compensation 225,718 195,231
(Gain)/loss on disposal of property, plant and equipment (356) 1,353
(Gain)/loss on disposal of available-for-sale assets (21,880) 959
Loss on disposal of construction-in-progress 1,219 732
Loss on disposal of intangible assets 12,673 3,124
Dividend income (547) (362)
De-recognition of contingent consideration –(19,861)
Fair value change on financial instruments (10,572) 725
Release of escrow shares for settlement of acquisition consideration (6,913) –
Increase in inventories (739,964) (653,642)
Decrease/(increase) in trade receivables, notes receivable, deposits, prepayments
and other receivables 1,474 (187,202)
Increase in trade payables, notes payable, provisions, accruals and other payables 1,011,546 17,842
Effect of foreign exchange rate changes 6,244 (5,618)
Net cash generated from operations 1,640,386 245,383