Note 19 Leases
2019
Finance lease receivables
The receivables in respect of finance leases as at year-end 2019 were as follows:
€ million | Less than 1 year | Between 1 and 5 years | Over 5 years | Total |
As at 31 December 2019 | ||||
Future minimum lease receivables | - | 2 | 3 | 5 |
Unearned finance income | - | - | -1 | -1 |
Present value of finance lease receivables | - | 2 | 2 | 4 |
As at 31 December 2018 | ||||
Future minimum lease receivables | - | 2 | 3 | 5 |
Unearned finance income | - | - | -1 | -1 |
Present value of finance lease receivables | - | 2 | 2 | 4 |
The receivable relates to a heat transport connection. The future minimum lease receivables are equal on an annual basis between year 1 and year 5. The carrying amount of €4 million was written down to nil as at year-end 2019.
Off-balance sheet operating lease receivables
The total future minimum lease receivables from non-cancellable operating leases not shown on the face of the balance sheet are as follows:
€ million | 2019 | 2018 |
Less than 1 year | 22 | 23 |
Between 1 and 2 years | 14 | 22 |
Between 2 and 3 years | 14 | 13 |
Between 3 and 4 years | 15 | 13 |
Between 4 and 5 years | 14 | 13 |
Over 5 years | 68 | 63 |
Total as at 31 December | 147 | 147 |
At 31 December 2019, the operating leases related mainly to rental of transformers and the subleasing of two district heating networks to N.V. Vattenfall Warmte N.V., a subsidiary of Vattenfall N.V.
Lease liabilities
€ million | Less than 1 year | Between 1 and 5 years | Over 5 years | Total |
As at 31 December 2019 | ||||
Future lease payments of the on-balance lease liabilities | 29 | 83 | 194 | 306 |
Future finance expenses on the on-balance lease liabilities | -12 | -47 | -21 | -80 |
Present value of the on-balance lease liabilities | 17 | 36 | 173 | 226 |
Alliander has lease liabilities in respect of buildings, areas, telecommunication connections, and company cars. Liabilities relating to two cross-border lease transactions are also recognised here. The movements in this part of the lease liabilities do not reflect cash flows but are made up of exchange differences totalling €3 million and other movements.
Besides the above lease liabilities, there is an undiscounted amount of €77 million in lease obligations to which Alliander has committed but that have not yet started, relating mainly to buildings and lease vehicles.
2018
IAS 17 was in effect until the end of 2018. The disclosures required for the 2018 figures under IAS 17 are specified below.
Lease obligations
Finance lease liabilities
€ million | Less than 1 year | Between 1 and 5 years | Over 5 years | Total |
As at 31 December 2018 | ||||
Future minimum lease obligations | 11 | 45 | 192 | 248 |
Future finance expense on finance leases | -12 | -40 | -37 | -89 |
Present value of finance lease obligations | -1 | 5 | 155 | 159 |
Finance lease payables at year-end 2018 mainly related to obligations in respect of two cross-border lease transactions (see note [3]). The movements in the finance lease payables in 2018 do not reflect cash flows but are made up of exchange differences totalling €9 million and other movements.
Operating lease liabilities
€ million | 2018 |
Less than 1 year | 20 |
Between 1 and 5 years | 46 |
Over 5 years | 68 |
Total as at 31 December | 134 |
At year-end 2018, Alliander had operating lease payables in respect of buildings, spaces, telecommunication interconnections and company cars.
The following table presents the costs for 2018 connected with operating leases.
Operating lease costs
€ million | 2018 |
Operating leases | 22 |
Additional services | 22 |
Total as at 31 December | 44 |
The operating leases relate to the net amounts of minimum and contingent lease payments. The additional services relate to the services of maintenance, management, fuel, insurance and so on provided in connection with these contracts.