Pick n Pay Group of Companies financial statements
notes to the group financial statements
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Pick n Pay Stores Group |
Pick n Pay Holdings Group |
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52 weeks 1 March 2015 Rm |
52 weeks 2 March 2014 Rm |
52 weeks 1 March 2015 Rm |
52 weeks 2 March 2014 Rm |
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11. |
OPERATING LEASES |
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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 (2014: five and 20 years) with renewal options for a further five to 20 years (2014: five and 20 years). Rentals comprise minimum monthly payments and additional payments based on turnover levels. Turnover rentals, where applicable, average 1.5% (2014: 1.5%) of turnover. Rental escalations vary, averaging 6.5% (2014: 6.5%) per annum. |
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Operating lease charges |
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Property – minimum lease payments |
1 341.4 |
1 133.7 |
1 341.4 |
1 133.7 |
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– turnover clause payments |
13.7 |
14.1 |
13.7 |
14.1 |
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1 355.1 |
1 147.8 |
1 355.1 |
1 147.8 |
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Leases contained within service agreements |
226.9 |
215.9 |
226.9 |
215.9 |
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The Group has entered into various operating lease agreements as the lessor of premises. Leases on premises are contracted for periods of between three and 15 years (2014: three and 15 years). Rentals comprise mainly minimum monthly payments. Rental escalations vary between 6.5% and 10.0% (2014: 6.5% and 8.0%) per annum. |
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Operating lease income |
67.3 |
77.8 |
67.3 |
77.8 |
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11.1 |
Operating lease assets |
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At beginning of period |
132.8 |
105.5 |
132.8 |
105.5 |
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Accrual |
17.0 |
27.3 |
17.0 |
27.3 |
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At end of period |
149.8 |
132.8 |
149.8 |
132.8 |
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At end of the period, future minimum rentals receivable from non-cancellable sublease contracts amount to: |
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Cash flow due in 2016 |
238.8 |
280.3 |
238.8 |
280.3 |
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Cash flow due in 2017 to 2020 |
855.7 |
870.9 |
855.7 |
870.9 |
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Cash flow due after 2020 |
1 246.3 |
1 072.7 |
1 246.3 |
1 072.7 |
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Total future cash flows |
2 340.8 |
2 223.9 |
2 340.8 |
2 223.9 |
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Less: Operating lease assets |
(149.8) |
(132.8) |
(149.8) |
(132.8) |
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Total operating lease receivables still to be recognised |
2 191.0 |
2 091.1 |
2 191.0 |
2 091.1 |
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11.2 |
Operating lease liabilities |
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At beginning of period |
1 042.7 |
924.6 |
1 042.7 |
924.6 |
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Accrual |
95.8 |
118.1 |
95.8 |
118.1 |
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At end of period |
1 138.5 |
1 042.7 |
1 138.5 |
1 042.7 |
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At end of the period, future non-cancellable minimum lease rentals are payable during the following financial periods: |
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Cash flow due in 2016 |
1 510.7 |
1 402.2 |
1 510.7 |
1 402.2 |
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Cash flow due in 2017 to 2020 |
5 631.1 |
5 020.5 |
5 631.1 |
5 020.5 |
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Cash flow due after 2020 |
7 022.3 |
6 109.7 |
7 022.3 |
6 109.7 |
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Total future cash flows |
14 164.1 |
12 532.4 |
14 164.1 |
12 532.4 |
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Less: Operating lease liabilities |
(1 138.5) |
(1 042.7) |
(1 138.5) |
(1 042.7) |
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Total operating lease commitments still to be recognised |
13 025.6 |
11 489.7 |
13 025.6 |
11 489.7 |
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