NOTE 28

		2014 Rm	2013 Rm	2012 Rm
28.	COMMITMENTS
	Capital expenditure commitments to be incurred:
	Contracted – Property, plant and equipment	674	718	644
	Contracted – Vehicle rental fleet	1 251	1 021	711
	Approved but not yet contracte	993	523	201
		2 918	2 262	1 556

Commitments will be spent substantially in the next financial year. Capital expenditure will be financed by funds generated by the business, existing cash resources and borrowing facilities available to the group.

Lease commitments

	Long term >5 years Rm	Medium term 2 – 5 years Rm	Short term <1 year Rm	2014 Total Rm	2013 Total Rm	2012 Total Rm
Operating lease commitments
Land and buildings	449	743	352	1 544	1 357	1 437
Motor vehicles		80	56	136	151	185
Capital equipment and other	1	919	554	1 474	716	188
	450	1 742	962	3 154	2 224	1 810

Land and building commitments include the following items:

–	Commitments for the operating and administrative facilities used by the majority of business segments. The average lease term is five years. Many lease contracts contain renewal options at fair market rates.
–	Properties used for office accommodation and used car outlets in the major southern African cities. Rentals escalate at rates which are in line with the historical inflation rates applicable to the southern African environment. Lease periods do not exceed five years.
–	Properties at airport locations. The leases are in general for periods of five years and the rental payments are based on a set percentage of revenues generated at those locations subject to certain minimums.

Motor vehicle commitments are mainly for vehicles in use in the offshore operations. The average lease term is four years.

Capital equipment and other commitments mainly consist of lease agreements for lifting equipment, office containers, photocopiers and printers.

	Long term >5 years Rm	Medium term 2 – 5 years Rm	Short term <1 year Rm	2014 Total Rm	2013 Total Rm	2012 Total Rm
Finance lease commitments
Present value of minimum lease payments
Land and buildings	114	193	65	372	437	458
Motor vehicles	1	630	249	880	420	37
Rental fleets					15	22
Other						29
	115	823	314	1 252	872	546
Minimum lease payments
Land and buildings	150	273	101	524	634	688
Motor vehicles	4	731	300	1 035	419	35
Rental fleets					15	22
Other						30
Total including future finance charges	154	1 004	401	1 559	1 068	775
Future finance charges				(307)	(196)	(229)
Present value of lease commitments (note 14)				1 252	872	546

Land and building commitments are for certain fixed-rate leases in the Automotive division for trading premises with an average term of 12 years including a purchase option at the end of the term.