Annual Report 2010 - SBM Offshore

An amount of US$ 26.9 million (2009: US$ 28.3 million)
third party interest has been capitalised during the
financial year under review as part of the additions to
property, plant and equipment.
The fair value of the major part of the property plant
and equipment cannot be estimated precisely but is
expected to be in excess of carrying values. Fair value
information is therefore not included in the notes to the
financial statements.
Operating leases as a lessor
The category 'Vessels and floating equipment' mainly
relates to facilities leased to third parties under various
operating lease agreements, which terminate between
2010 and 2027.
Leased facilities included in the 'Vessels and floating
equipment' amount to:
In thousands of US$ 2010 2009
Cost 2,634,848 2,487,417
Accumulated depreciation and impairment (1,243,937) (1,002,390)
Book value at 31 December 1,390,911 1,485,027
The nominal values of the future expected bareboat
receipts (minimum lease payments of leases) in respect
of those operating lease contracts are:
in millions of US$ 2010 2009
Within 1 year 549 500
Between 1 and 5 years 2,101 2,238
After 5 years 2,073 2,102
Total 4,723 4,840
A number of agreements have extension options, which
have not been included in the above table.
Finance lease as a lessee
In 2009, vessels and floating equipment included a net
carrying amount of US$ 47.8 million relating to finance
lease arrangements of two second-hand tankers where
the Company was the lessee. Both vessels have been
repurchased during the course of 2010 and are now
fully owned by the Company.
Financial Review / Financial Statements 2010
SBM Offshore – Annual Report 2010 147