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Tiger Brands Limited integrated annual report
2015 165
33 Group commitments
continued
33.3 Commitments in respect of operating leases
Group
(R’million)
Land and
buildings
Motor
vehicles
Property,
plant and
equipment
Other
Total
commitments
2015
During 2016
60,5
51,5
4,0
–
116,0
During 2017
44,4
35,7
4,4
–
84,5
During 2018
21,6
26,5
2,9
–
51,0
During 2019
12,5
15,5
1,2
–
29,2
During 2020 and thereafter
4,3
10,8
0,7
–
15,8
143,3
140,0
13,2
–
296,5
2014
During 2015
61,7
37,8
31,0
–
130,5
During 2016
46,3
28,4
1,8
–
76,5
During 2017
18,6
16,3
1,6
–
36,5
During 2018
5,8
10,2
1,6
–
17,6
During 2019 and thereafter
5,1
7,0
0,8
–
12,9
137,5
99,7
36,8
–
274,0
With the exception of the leases described below, operating leases are generally three to six years in duration, without
purchase options and in certain instances have escalation clauses of between 7,0% and 10% or are linked to the prime
rate of interest or consumer price index (CPI). Other contingent rentals are generally not applicable. One lease, relating
to fruit processing equipment, has a remaining contract period of two years, contingent rental linked to tons of fruit
processes and escalates based on the American CPI, amounts to R5,6 million (2014: R3,9 million).
33.4 Commitments in respect of finance leases
The group has finance leases for various items of plant and machinery. These leases have terms of renewal with a
purchase option and are linked to the prime interest rate. Renewals are at the option of the specific entity that holds the
lease. Future minimum leases payments under finance leases, together with the present value of the net minimum lease
payments, are as follows:
GROUP
2015
2014
(R’million)
Minimum
payments
Present value
of payments
Minimum
payments
Present value
of payments
Within one year
2,6
2,1
2,7
2,2
After one year but not more than five years
3,4
3,1
5,3
4,8
Total minimum lease payments
6,0
5,2
8,0
7,0
Less amounts representing finance charges
(0,8)
–
(1,0)
–
Total
5,2
5,2
7,0
7,0
Please refer to note 31.3 for further details.
33.5 Commitments in respect of inventories
In terms of its normal business practice, certain group operations have entered into commitments to purchase certain
agricultural inputs over their respective seasons.
33.6 Commitments in respect of transport
The group maintains long-term contracts, including certain minimum payments, with various transport companies for the
distribution of its products.