Pick n Pay Group of Companies financial statements
Notes to the Group financial statements
for the period ended

		Pick n Pay Stores Group		Pick n Pay Holdings Group
		364 days to   2 March   2014   Rm	368 days to   3 March   2013   Rm	364 days to   2 March   2014   Rm	368 days to   3 March   2013   Rm
11.	OPERATING LEASES
	The Group has entered into various operating lease agreements as the lessee of premises. Leases on premises are contracted for periods of between five and 20 years (2013: five and 20 years) with renewal options for a further five to 20 years (2013: five and 20 years). Rentals comprise minimum monthly payments and additional payments based on turnover levels. Turnover rentals, where applicable, average 1.5% (2013: 1.5%) of turnover. Rental escalations vary averaging 6.5% (2013: 6.5%) per annum.
	Operating lease charges*
	Property
	– minimum lease payments	1 133.7	1 063.9	1 137.9	1 063.9
	– turnover clause payments	14.1	23.3	14.1	23.3
		1 147.9	1 087.2	1 147.9	1 087.2
	Leases contained within service agreements	215.9	205.2	215.9	205.2
	The Group has entered into various operating lease agreements as the lessor of the premises. Leases on premises are contracted for periods of between three and 15 years (2013: three and 15 years). Rental comprises mainly minimum monthly payments. Rental escalations vary between 6.5% and 8.0% (2013: 6.5% and 8.0%) per annum.
	Operating lease receipts	77.8	75.8	77.8	75.8
11.1	Operating lease assets
	At beginning of period	105.5	84.8	105.5	84.8
	Accrual	27.3	20.7	27.3	20.7
	At end of period	132.8	105.5	132.8	105.5
	At end of period future minimum rentals receivable from non-cancellable sublease contracts amount to:
	Cash flow due in 2015	280.3	256.4	280.3	256.4
	Cash flow due in 2016 to 2019	870.9	738.4	870.9	738.4
	Cash flow due after 2019	1 072.7	1 002.8	1 072.7	1 002.8
	Total future cash flows	2 223.9	1 997.6	2 223.9	1 997.6
	Less: Operating lease assets	(132.8)	(105.5)	(132.8)	(105.5)
	Total operating lease income receivable	2 091.1	1 892.1	2 091.1	1 892.1
11.2	Operating lease liabilities
	At beginning of period	924.6	829.1	924.6	829.1
	Accrual	118.1	95.5	118.1	95.5
	At end of period	1 042.7	924.6	1 042.7	924.6
	At end of period future non-cancellable minimum lease rentals are payable during the following financial periods:
	Cash flow due in 2015	1 402.2	1 234.6	1 402.2	1 234.6
	Cash flow due in 2016 to 2019	5 020.5	4 424.8	5 020.5	4 424.8
	Cash flow due after 2019	6 109.7	6 143.3	6 109.7	6 143.3
	Total future cash flows	12 532.4	11 802.7	12 532.4	11 802.7
	Less: Operating lease liabilities	(1 042.7)	(924.6)	(1 042.7)	(924.6)
	Total operating lease commitments	11 489.7	10 878.1	11 489.7	10 878.1

* Internal lease rental charges of R153.0 million was inappropriately included in external operating lease charges in the 2013 financial year. The comparative number has been restated accordingly.