2015_LCC Annual Report
PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION Notes to Financial Statements March 31,2015
12.
Leases and Commitments
The Commission leases fourteen retail outlets. Eleven of those outlets are classified as operating leases and three retail outlets are classified as finance leases.
Finance Leases
The following are the future minimum lease payments and present values for the finance leases as at March 31,2015:
Within 1 Year
1 to 5 Years
After 5 Years
$
$
$
$
Minimum ease payments
143,502 132,670
574,008 437,957
1,960,807
2,678,317 1,373,396
Present value
802,769
The present value was calculated by discounting the minimum lease payments using the estimated interest rates implicit in the lease over the same period as the length of the lease including any renewal options. Estimated interest rates implicit in the lease range between 7.27 and 9.27 percent.
Operating Leases
The following are the Commission’s future minimum lease payments for the operating leases:
Within 1 Year
1 to 5 Years
After 5 Years
Renewal ODtions
I2J
$
$
$
$
$
March 31,2015 March 31, 2014
471,429 639,837
839,479
559,746 671,508
4,468,560 5,545,150
6,339,214 8,051,627
1,195,132
Total future minimum operating lease payments include lease renewal options which can be exercised by the Commission for periods above their current lease contract. Lease payments recognized as an expense during the period are $632,021 (2014 - $759,284). Dependent on the terms of the lease, other costs incurred by the Commission associated with property leases generally include insurance, taxes, repairs and maintenance, and leasehold improvements.
Commitments
The Commission has
entered
into contracts with various
suppliers
for
hardware
maintenance, software support services,
internet access, marketing and security services.
The total of these contracts is $783,935 and they expire in one to three years.
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