John Lewis Partnership plc annual report and accounts 2012

19 Finance lease liabilities

Table showing Finance lease liabilities

2012 (£m) | 2011 (£m)

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The minimum lease payments under finance leases fall due as follows:
Not later than one year 1.8 | 2.0
Later than one year but not more than five 6.8 | 7.4
More than five years 46.2 | 48.3
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54.8 | 57.7
Future finance charge on finance leases (27.8) | (28.9)
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Present value of finance lease liabilities 27.0 | 28.8
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Of which:
Current 0.6 | 0.8
Non-current 26.4 | 28.0
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The group’s finance lease liabilities relate to buildings that have been classified as finance leases in accordance with IAS 17 Leases.

20 Provisions

Table showing Provisions

Consolidated | Long service leave (£m) | Service guarantee costs (£m) | Customer refunds (£m) | Insurance (£m) | Other (£m) | Total (£m)

At 29 January 2011 85.4 | 52.6 | 10.1 | 18.4 | 31.4 | 197.9
Charged to income statement 11.4 | 16.7 | 32.9 | 11.7 | 10.7 | 83.4
Released to income statement – | (3.8) | – | – | (5.8) | (9.6)
Utilised (3.9) | (16.1) | (20.9) | (9.6) | (15.0) | (65.5)
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At 28 January 2012 92.9 | 49.4 | 22.1 | 20.5 | 21.3 | 206.2
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Of which:
Current 30.6 | 17.7 | 22.1 | 6.1 | 14.1 | 90.6
Non-current 62.3 | 31.7 | – | 14.4 | 7.2 | 115.6
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The Partnership has a long service leave scheme, open to all employees, that provides up to six months’ paid leave after 25 years’ service. There is no proportional entitlement for shorter periods of service. The provision for the liabilities under the scheme is assessed on an actuarial basis, reflecting employees’ expected service profiles, and using economic assumptions consistent with those used for the group’s retirement benefit obligations (note 24), with the exception of the discount rate, where a rate appropriate to the shorter duration of the long leave liability is used, so as to accrue the cost over employees’ service periods.

Provisions for service guarantee costs reflect the group’s expected liability for future repair costs based on expected failure rates and unit repair costs for the classes of goods sold.

Provisions for insurance claims are in respect of the group’s employer’s, public and vehicle third party liability insurances and extended warranty products. Liabilities have been assessed on an actuarial basis.

Provision for customer refunds reflects the group’s expected liability for returns of goods sold based on experience of rates of return.

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