Statement of Commitments
In this section...
- Annual Report 2007/08 homepage
- Chief Executive's overview
- Strategic direction 2007/2008
- LINZ's performance 2007/2008
- LINZ information
As at 30 June 2008
Capital commitments
Capital commitments are the aggregate amount of capital expenditure contracted for the acquisition of property, plant and equipment and intangible assets that have not been paid for or recognised as a liability at the balance sheet date.
Non-cancellable operating lease commitments
LINZ has long-term leases on our premises throughout New Zealand. The annual lease payments are subject to regular reviews. The amounts disclosed below as future commitments are based on current rental rates. Operating lease commitments include lease payments for premises, office equipment and motor vehicles.
LINZ non-cancellable operating leases have varying terms, escalation clauses and renewal rights.
There are no restrictions placed on the Department by any of our leasing arrangements.
The Department leases a number of building premises and office equipment under operating leases. The leases typically run for a period of three years (for buildings) and three years (for office equipment), with an option to renew the lease after that date. In the case of leased buildings, lease payments are increased every five years to reflect market rentals. None of the leases includes contingent rentals.
During the year ended 30 June 2008, $5.949 million was recognised as an expense in the Statement of Financial Performance in respect of operating leases (2007: $4.101 million). $0.951 million was recognised as income in the Statement of Financial Performance in respect of subleases (2007: $0.673 million).
Other non-cancellable commitments
Non-cancellable contracts for supply of goods and services are mainly from Crown property management and Landonline system maintenance.
| Actual 30/6/07 $000 |
Actual 30/6/08 $000 |
|
|---|---|---|
| Capital commitments | ||
| Cash provided from: | ||
| – | Property, plant and equipment | – |
| – | Intangible assets | – |
| 0 | Total capital commitments | 0 |
| Non-cancellable operating lease commitments | ||
| 3,703 | Not later than one year | 4,418 |
| 11,742 | Later than one year and not later than five years | 10,182 |
| – | Later than five years | – |
| 15,445 | Total non-cancellable operating lease commitments | 14,600 |
| Other non-cancellable commitments | ||
| 15,134 | Not later than one year | 19,001 |
| 36,790 | Later than one year and not later than five years | 24,881 |
| – | Later than five years | 8,599 |
| 51,924 | Total other non-cancellable lease commitments | 52,481 |
| 67,369 | Total commitments | 67,081 |
