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20 OMMITMENTS AND ONTINENT LIABILITIES
Leases are classfed as fnance leases whenever the terms of the lease transfer substantally all the rsks and rewards of ownershp
All other leases are classfed as operatng leases
Assets held under fnance leases are ntally recognsed at the lower of far value at the date of commencement of the lease and the
present value of the mnmum lease payments Subsequent to ntal recognton, these assets are accounted for n accordance wth
the accountng polcy relatng to that specfc asset The correspondng lablty s ncluded n the balance sheet as a fnance lease
oblgaton Lease payments are apportoned between fnance costs n the ncome statement and reducton of the lease oblgaton
so as to acheve a constant rate of nterest on the remanng balance of the lablty
Lease payments under operatng leases are charged to the ncome statement on a straght-lne bass over the term of the lease
ontngent labltes are ether possble oblgatons that wll probably not requre a transfer of economc benefts, or present
oblgatons that may, but probably wll not, requre a transfer of economc benefts It s not approprate to make provsons for
contngent labltes, but there sa chance that they wll result n an oblgaton n the future ontngent labltes are dsclosed at the
rsk adusted best estmate of the amount that would be requred to settle the lablty as at the end of the reportng perod Where a
rsk weghtng s not avalable, the maxmum exposure s reported
Long-term fnance lease commtments
 mllon
Future
mnmum
lease
payments
2015
 mllon
Fnance
cost
2015
 mllon
Present
value
2015
 mllon
Future
mnmum
lease
payments
2014
 mllon
Fnance
cost
2014
 mllon
Present
value
2014
Buldngs(a) 284 105 179 283 102 181
Plant and machnery 18 216 22 4 18
302 107 195 305 106 199
The commtments fall due as follows
Wthn 1 year 51 14 37 25 12 13
Later than 1 year but not later than 5 years 85 37 48 108 36 72
Later than 5 years 166 56 110 172 58 114
302 107 195 305 106 199
(a) All leased land s classfed as operatng leases
The table below shows the net book value of property, plant and equpment under a number of fnance lease agreements
Net book value
 mllon
Buldngs
 mllon
Plant and
equpment
 mllon
Total
ost 239 154 393
Accumulated deprecaton (82) (133) (215)
31 December 2015 157 21 178
ost 218 148 366
Accumulated deprecaton (69) (124) (193)
31 December 2014 149 24 173
The roup has sublet part of the leased propertes under fnance leases Future mnmum sublease payments of 41 mllon
(2014 38 mllon) are expected to bereceved
Long-term operatng lease commtments
 mllon
2015
 mllon
2014
Land and buldngs 2,024 1,903
Plant and machnery 430 424
2,454 2,327
130 Unilever Annual Report and Accounts 2015Financial statements
NOTES TO THE ONSOLIDATED FINANIAL STATEMENTS
UNILEVER ROUP ONTINUED