Statement of Commitments
In this section...
- Annual Report 2008/09 homepage
- Chief Executive's overview
- Strategic context 2008/2009
- LINZ's performance 2008/2009
- Financial statements
- LINZ information
- Appendix
As at 30 June 2009
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 its 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's non-cancellable operating leases have varying terms, escalation clauses and renewal rights. 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 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 2009, $4.810 million was recognised as an expense in the Statement of Financial Performance in respect of operating leases (2008: $5.949 million). $0.928 million was recognised as income in the Statement of Financial Performance in respect of subleases (2008: $0.951 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 2008 $000 |
Actual 2009 $000 |
|
|---|---|---|
| Non-cancellable operating lease commitments | ||
| 4,418 | Not later than 1 year | 4,327 |
| 10,182 | Later than 1 year and not later than 5 years | 5,900 |
| 14,600 | Total non-cancellable operating lease commitments | 10,227 |
| Other non-cancellable commitments | ||
| 19,001 | Not later than 1 year | 15,453 |
| 24,881 | Later than 1 year and not later than 5 years | 19,108 |
| 8,599 | Later than 5 years | – |
| 52,481 | Total other non-cancellable lease commitments | 34,561 |
| 67,081 | Total commitments | 44,788 |
