Osim FR 050407.indd

Notes to the Financial Statements - 31 December 2006 (cont’d)39. Non-cancellable operating lease commitmentsThe Group and the Company have lease commitments with respect to the rental of shop and offi ce premises. The leases have varyingterms, escalation clauses and renewal rights. The lease commitments include commitments for basic operating lease payments,as well as commitments for additional contingent rental payable when turnover of certain retail outlets exceeds pre-determinedlevels. Lease terms do not contain restrictions on the Group’s activities concerning dividends, additional debt or further leasing.Operating lease payments recognised in the consolidated profi t and loss account during the year amounted to $52,930,000 (2005:$39,776,000).Future minimum lease payments payable under non-cancellable operating leases as at 31 December are as follows:GroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Not later than 1 year 44,630 38,661 10,681 10,490Later than 1 year but not later than 5 years 85,279 51,795 21,699 18,263Later than 5 years 13,458 17,262 13,458 17,262143,367 107,718 45,838 46,01540. Capital commitmentsGroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Capital expenditure for shop renovationsapproved but not contracted 7,975 7,628 1,450 2,920Notes to the Financial Statements 156Annual Report 2006