Leases (Tables)

12 Months Ended

Dec. 31, 2019

Presentation of leases for lessee [abstract]

Summary of information about leases in income statement

The amounts recognised in the income statement are as follows:

All figures in £ millions	Note		2019
Interest on lease liabilities		6		(45	)
Expenses relating to short-term leases				(2	)
Depreciation of right-of-use assets		10		(64	)

Summary of information about right to use asset as follows

Right-of-use assets comprise the following and are included within property, plant and equipment in the balance sheet:

	2019
All figures in £ millions	Land and buildings		Plant and equipment		Total
Balance at 1 January 2019		—		—		—
Adjustment on initial application of IFRS 16 (see note 1b)		418		6		424
Balance at 31 December 2019		402		7		409

Summary of maturities of operating lease payments

Lease liabilities are included within financial liabilities – borrowings in the balance sheet, see note 18. The maturities of the Group’s lease liabilities are as follows:

All figures in £ millions	2019
Less than one year		123
One to five years		420
More than five years		622
Total undiscounted lease liabilities		1,165
Lease liabilities included in the balance sheet		838
Analysed as:
Current		89
Non-current		749

Summary of information about leases in cash flow statement

The amounts recognised in the cash flow statement are as follows:

All figures in £ millions	2019
Total cash outflow for leases as a lessee		136

Summary of information about leases of lessor in income statement

The amounts recognised in the income statement are as follows:

All figures in £ millions	Note		2019
Interest on finance lease receivable		6		11
Income from sub-leasing right-of-use assets (within other income)				17

Summary of information about leases of lessor in cash flow statement

The amounts recognised in the cash flow statement are as follows:

All figures in £ millions	2019
Total cash inflow for leases as a lessor		37

Summary of detailed information about undiscounted lease payments to be received after the reporting date

The following table sets out the maturity analysis of lease payments receivable for sub-leases classified as operating leases, showing the undiscounted lease payments to be received after the reporting date, and sub-leases classified as finance leases showing the undiscounted lease payments to be received after the reporting date and the net investment in the finance lease receivable.

All figures in £ millions	Operating leases		Finance leases			2019 Total
Less than one year		12		34			46
One to two years		4		40			44
Two to three years		4		33			37
Three to four years		3		30			33
Four to five years		3		31			34
More than five years		20		67			87
Total undiscounted lease payments receivable		46		235			281
Unearned finance income				(39	)
Net investment in finance lease receivable				196

Summmary of maturity of the Group's finance lease obligations is as follows

The maturity of the Group’s finance lease obligations is as follows:

All figures in £ millions	2018
Finance lease liabilities – minimum lease payments
Not later than one year		3
Later than one year and not later than two years		1
Later than two years and not later than three years		1
Later than three years and not later than four years		—
Later than four years and not later than five years		—
Later than five years		—
Future finance charges on finance leases		—
Present value of finance lease liabilities		5

Summary of the present value of the group's finance lease obligations is as follows

The present value of the Group’s finance lease obligations is as follows:

All figures in £ millions	2018
Not later than one year		3
Later than one year and not later than five years		2
Later than five years		—
		5

Summary of future aggregate minimum lease payments in respect of operating leases

The future aggregate minimum lease payments in respect of operating leases were as follows:

All figures in £ millions	2018
Not later than one year		143
Later than one year and not later than two years		130
Later than two years and not later than three years		115
Later than three years and not later than four years		101
Later than four years and not later than five years		91
Later than five years		595
		1,175

Summary of future aggregate minimum sub-lease payments expected to received under non-cancellable sub-leases

warehouses, it entered into sub-lease contracts in order to offset costs. The future aggregate minimum sub-lease payments expected to be received under non-cancellable sub-leases were as follows:

All figures in £ millions	2018
Not later than one year		51
Later than one year and not later than two years		44
Later than two years and not later than three years		41
Later than three years and not later than four years		39
Later than four years and not later than five years		35
Later than five years		124
		334