24 – Leases

The Group is lessee under lease arrangements covering property and equipment.

Finance Lease Commitments

Most of the Group’s finance lease arrangements are made under usual terms and conditions.

Net Carrying Value of Leasing Assets Held under finance leases

in € m.

Dec 31, 2014

Dec 31, 2013

Land and buildings

13

82

Furniture and equipment

1

1

Other

5

0

Net carrying value

19

84

Future Minimum Lease Payments Required under the Group’s Finance Leases

in € m.

Dec 31, 2014

Dec 31, 2013

1

The contingent rent is based on market interest rates, such as three months EURIBOR; below a certain rate the Group receives a rebate.

Future minimum lease payments:

 

 

Not later than one year

6

26

Later than one year and not later than five years

24

11

Later than five years

84

10

Total future minimum lease payments

114

47

Less: Future interest charges

71

19

Present value of finance lease commitments

43

28

Future minimum lease payments to be received

9

12

Contingent rent recognized in the income statement1

0

1

Operating Lease Commitments

The Group leases the majority of its offices and branches under long-term agreements. Most of the lease contracts are made under usual terms and conditions, which means they include options to extend the lease by a defined amount of time, price adjustment clauses and escalation clauses in line with general office rental market conditions. However, the lease agreements do not include any clauses that impose any restriction on the Group’s ability to pay dividends, engage in debt financing transactions or enter into further lease agreements. The Group has one significant lease contract which contains five options to extend the lease each for a period of five years and there is no purchase option in this specific lease.

Future Minimum Lease Payments Required under the Group’s Operating Leases

in € m.

Dec 31, 2014

Dec 31, 2013

Future minimum rental payments:

 

 

Not later than one year

778

824

Later than one year and not later than five years

2,370

2,324

Later than five years

1,955

1,865

Total future minimum rental payments

5,103

5,013

Less: Future minimum rentals to be received

171

161

Net future minimum rental payments

4,932

4,852

As of December 31, 2014, the total future minimum rental payments included € 386 million for the Group headquarters in Frankfurt am Main that was sold and leased back on December 1, 2011. The Group entered into a 181 months leaseback arrangement for the entire facility in connection with the transaction.

In 2014, the rental payments for lease and sublease agreements amounted to € 815 million. This included charges of € 835 million for minimum lease payments and € 10 million for contingent rents as well as € 29 million related to sublease rentals received.