Cadbury Schweppes Annual Report and Accounts 2006 - Notes to the Financial Statements

Notes to the Financial Statements

33. Leasing commitments

(a) Finance leases

	Minimum lease payments			Present value of minimum lease payments
	2006 £m	2005 £m	2004 £m	2006 £m	2005 £m	2004 £m
On leases expiring:
Within one year	25	23	22	22	20	20
Between one and five years	32	44	68	28	42	65
After five years	8	1	1	5	1	1
	65	68	91	55	63	86
Less future finance charges	(10)	(5)	(5)
Present value of lease obligations	55	63	86
Amount due for settlement within 12 months	22	20	20
Amount due for settlement after 12 months	33	43	66

It is the Group's policy to lease certain of its plant and equipment under finance leases. Interest rates are fixed at the contract date. All leases are on a fixed repayment basis and no arrangements are entered into for contingent rental payments. The carrying value of the Group's lease obligations approximates their fair value.

(b) Operating leases

At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

	2006 £m	2005 £m	2004 £m
Within one year	66	52	57
Between one and five years	190	133	127
After five years	124	113	102
	380	298	286

Operating lease expenses charged in the income statement	72	57	66