All leases where the Group is a lessee are accounted for by recognising a right-of-use asset and a lease liability except for:
- Leases of low value assets; and
- Leases with a term of 12 months or less.
IFRS 16 "Leases" was adopted on 30 March 2019 without restatement of comparative figures. For an explanation of the transitional requirements that were applied as at 30 March 2019, see the Accounting Policies.
i) Amounts recognised in the Consolidated Statement of Financial Position
Right-of-Use Assets
| Land and
buildings
£m | Equipment
£m | Total
£m |
| At 30 March 2019 | 388.5 | 7.8 | 396.3 |
| Reclassification from intangible assets | 2.4 | – | 2.4 |
| Additions on acquisition of subsidiary | 11.1 | 0.3 | 11.4 |
| Additions to right-of-use assets | 10.0 | 1.9 | 11.9 |
| Amortisation charge for the year | (70.2) | (3.4) | (73.6) |
| Effect of modification of lease | 11.6 | – | 11.6 |
| Derecognition of right-of-use assets | – | (0.7) | (0.7) |
| Impairment | (9.4) | – | (9.4) |
| At 3 April 2020 | 344.0 | 5.9 | 349.9 |
Of the £9.4m right-of-use asset impairment, £7.7m relates to Cycle Republic and is included in non-underlying costs (note 5).
Lease Liabilities
| Land and
buildings
£m | Equipment
£m | Total
£m |
| At 30 March 2019* | 448.6 | 8.2 | 456.8 |
| Additions on acquisition of subsidiary | 11.0 | 0.2 | 11.2 |
| Additions to lease liabilities | 10.5 | 1.8 | 12.3 |
| Interest expense | 11.1 | 0.2 | 11.3 |
| Effect of modification to lease | 11.7 | – | 11.7 |
| Lease payments | (83.8) | (4.2) | (88.0) |
| Foreign exchange movements | 0.7 | – | 0.7 |
| At 3 April 2020 | 409.8 | 6.2 | 416.0 |
| | | | |
| Carrying value of lease liabilities included in the statement of financial position | | | Total
£m |
| Current liabilities | | | 83.2 |
| Non-current liabilities | | | 332.8 |
* In the previous year, the Group only recognised lease assets and lease liabilities in relation to leases that were classified as 'finance leases' under IAS 17, 'Leases'. The assets were presented in property, plant and equipment and the liabilities as part of the Group's borrowings. For adjustments recognised on adoption of IFRS 16 on 30 March 2019, please refer to the Accounting Policies.
| Lease liabilities | 3 April
2020
£m |
| Maturity analysis – contractual undiscounted cash flows | |
| Less than one year | 92.9 |
| Between one and two years | 76.6 |
| Between two and five years | 177.0 |
| After five years | 108.7 |
| Total contractual cash flows | 455.2 |
ii) Amounts recognised in the Consolidated Income Statement
| Land and
buildings
£m | Equipment
£m | Total
£m |
| 53 weeks ended 3 April 2020 | | | |
| Depreciation charge on right-of-use assets | 70.2 | 3.4 | 73.6 |
| Interest on lease liabilities | 11.1 | 0.2 | 11.3 |
| Expenses relating to short-term leases | 2.5 | – | 2.5 |
| Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets | – | 0.6 | 0.6 |
| 52 weeks ended 29 March 2019 | | | |
| Lease expense | 93.1 | 3.8 | 96.9 |
| Sub-lease income presented in 'other revenue' | (3.1) | – | (3.1) |
iii) Amounts recognised in Statement of Cash Flows
The total cash outflow for leases for the period ended 3 April 2020 was £87.7m.