2018
Rm		   2017
Rm		  
28. COMMITMENTS        
  Capital expenditure commitments to be incurred:        
  Contracted – property, plant and equipment 340   566  
  Contracted – vehicle rental fleet 1 131   1 259  
  Approved but not yet contracted 216   168  
  Total continuing operations 1 687   1 993  
  Discontinued operation     24  
  Total group 1 687   2 017  
  Share of joint ventures’ capital expenditure commitments to be incurred:        
  Approved but not yet contracted 135      
    135      
 

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		 Medium
term
2 – 5 years		 Short term
<1 year		 2018
Total		 2017
Total		  
Rm Rm Rm Rm Rm  
Operating lease commitments
            
Land and buildings 695 1 193 411 2 300 1 677  
Motor vehicles 19 351 246 616 728  
Capital equipment and other   26 497 523 526  
Total continuing operations 715 1 570 1 154 3 439 2 933  
Discontinued operation         143  
Total group 715 1 570 1 154 3 439 3 075  

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		 Medium
term
2 – 5 years		 Short term
<1 year		 2018 
Total 		 2017 
Total 		  
Rm Rm Rm Rm  Rm   
Finance lease commitments            
Present value of minimum lease payments            
Land and buildings 56 85 18 159  182   
Motor vehicles   227 142 369  585   
Capital equipment and other   77 20 97  2   
Total continuing operations 56 389 180 625  769   
Discontinued operation         18   
Total group 56 389 180 625  787   
Minimum lease payments            
Land and buildings 84 133 37 254  328   
Motor vehicles   252 168 420  679   
Capital equipment and other   88 27 115  3   
Total including future finance charges 84 473 232 789  1 010   
Future finance charges       (164) (242)  
Total continuing operations 84 473 232 625  768   
Discontinued operation including future finance charges         20   
Discontinued operation from future finance charges         (1)  
Total group 84 473 232 625  787   

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 and the Equipment division for premises with an average term of 15 to 20 years.