BAE-annual-report-2014

Financial statements
31. CONTINGENT LIABILITIES AND COMMITMENTS
Guarantees and performance bonds
The Group has entered into a number of guarantee and performance bond arrangements in the normal course of business and regards
these as insurance contracts. Provision is made for any amounts that the directors consider may become payable under such
arrangements.
Operating lease commitments – where the Group is the lessee
The Group leases various offices, factories and shipyards under non-cancellable operating lease agreements. The leases have varying
terms including escalation clauses, renewal rights and purchase options. None of these terms represent unusual arrangements or
create material onerous or beneficial rights or obligations.
The future aggregate minimum lease payments under non-cancellable operating leases and associated future minimum sublease income
are as follows:
Payments due:
Not later than one year 213 166
Later than one year and not later than five years 678 506
Later than five years 810 630
1,701 1,302
2014
£m
2013
£m
Total of future minimum sublease income under non-cancellable subleases 159 166
Capital commitments
Capital expenditure contracted for but not provided for in the accounts is as follows:
Property, plant and equipment 142 91
Intangible assets 3 18
145 109
2014
£m
2013
£m
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
BAE Systems
Annual Report 2014
155