a) Group as a lessor
Operating lease
The Group entered into contracts with third parties, which are classified as operating leases based on their economic substance. The contracts relate to the rental of reception equipment. Assets connected with such contracts are presented as part of property, plant and equipment.
Lease contracts for set-top boxes are concluded for a base contractual period ranging from 12 to 36 months. After each base period, the contracts are converted into contracts with either indefinite or definite terms, unless terminated by the subscribers.
The Group rents equipment to third parties and concludes rental agreements.
Future minimum lease payments with respect to operating lease are as follows:
| 31 December 2012 | 31 December 2011 | |
|---|---|---|
| less than 1 year | 13,763 | 21,214 |
| between 1 and 5 years | 6,677 | 44,105 |
| more than 5 years | - | - |
| Total | 20,440 | 65,319 |
Finance lease
Future minimum lease payments with respect to finance lease are as follows:
| 31 December 2012 | 31 December 2011 | |
|---|---|---|
| less than 1 year | 34 | 83 |
| between 1 and 5 years | - | 34 |
| Total | 34 | 117 |
The present value of minimum lease payments amounted to PLN 34 as at 31 December 2012 (PLN 117 as at 31 December 2011). The whole amount related to leased cars.
b) Group as a lessee
Operating leases
The Group entered into agreements, which are classified as operating lease contracts based on their economic substance. Assets leased under these contracts are not recorded in the financial statements. The contracts comprise leases of studio, office, warehouse, commercial and technical (roofs, chimneys) premises, lease of satellite transponders capacity, vehicles and other equipment.
The table below presents a maturity analysis for such commitments:
| 31 December 2012 | 31 December 2011 | |
|---|---|---|
| within one year | 153,848 | 159,689 |
| between 1 to 5 years | 258,764 | 486,722 |
| more than 5 years | 113,498 | 152,323 |
| Total | 526,110 | 798,734 |
The table below presents future minimum payments relating to operating lease agreements to related parties:
| 31 December 2012 | 31 December 2011 | |
|---|---|---|
| within one year | 13,548 | 17,248 |
| between 1 to 5 years | 4,191 | 35,463 |
| more than 5 years | 1,612 | 313 |
| Total | 19,351 | 53,024 |
In 2012 the Group incurred costs related to operating lease agreements amounting to PLN 173,674 and in 2011 PLN 142,344.
Finance leases
The total carrying amount of equipment used under finance lease contracts amounted to PLN 1,131 as at 31 December 2012 and PLN 1,567 as at 31 December 2011.
The lease term is 10 years with respect to conditional access equipment and 5 years with respect to vehicles and other equipment.
Future minimum lease payments under finance leases are as follows:
| 31 December 2012 | 31 December 2011 | |
|---|---|---|
| less than 1 year | 233 | 252 |
| between 1 and 5 years | 551 | 934 |
| more than 5 years | - | - |
| Total | 784 | 1,186 |
The present value of minimum lease payments amounted to PLN 784 as at 31 December 2012 and PLN 1,186 as at 31 December 2011.
