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Leases
 12 Months Ended
Dec. 31, 2019
Text block [abstract]  
Leases
13. Leases
 
The movements in the year ended 31 December 2019 were as follows:
 
Right-of-use
assets
  
Land and
buildings
£m
 
 
Plant and
machinery
£m
 
 
Total
£m
 
1 January 2019
  
 
1,862.5
 
 
 
32.6
 
 
 
1,895.1
 
Additions
  
 
348.1
 
 
 
16.5
 
 
 
364.6
 
Transfers to net investment in subleases
1
  
 
(37.6
) 
 
 
–
 
 
 
(37.6
)  
Disposals
  
 
(31.0
) 
 
 
(0.6
) 
 
 
(31.6
) 
Depreciation of
right-of-use
assets
  
 
(301.5
) 
 
 
(16.4
) 
 
 
(317.9
) 
Transfer to disposal group classified as held for sale
  
 
(134.4
) 
 
 
(3.7
) 
 
 
(138.1
) 
31 December 2019
  
 
1,706.1
 
 
 
28.4
 
 
 
1,734.5
 
 
Note
1
 
 
The sublease of certain office space is classified as a finance lease and relates primarily to Kantar business units that were sold. The Company de-recognised the right-of-use asset (to the extent that it is subject to the sublease) and recognised the net investment in subleases, which is included within trade and other receivables. No other disclosures are deemed necessary as it is not material.
 
 
Lease liabilities
  
 

 
Land and
buildings
£m
 
 
 
 
 

 
Plant and
machinery
£m
 
 
 
 
 
Total
£m
 
 
1 January 2019
  
 
2,294.4
 
 
 
31.8
 
 
 
2,326.2
 
Additions
  
 
325.9
 
 
 
12.3
 
 
 
338.2
 
Interest expense related to lease liabilities
  
 
101.5
 
 
 
1.2
 
 
 
102.7
 
Disposals
  
 
(27.5
) 
 
 
(0.2
) 
 
 
(27.7
) 
Repayment of lease liabilities (including interest)
  
 
(326.2
) 
 
 
(14.9
) 
 
 
(341.1
) 
Transfer to disposal group classified as held for sale
  
 
(144.7
) 
 
 
(3.9
) 
 
 
(148.6
) 
31 December 2019
  
 
2,223.4
 
 
 
26.3
 
 
 
2,249.7
 
 
The following table shows the breakdown of the lease expense between amounts charged to operating profit and amounts charged to finance costs:
 
Continuing operations
  
2019
£m
 
Depreciation of
right-of-use
assets:
  
 
 
 
Land and buildings
  
 
(286.5
) 
Plant and machinery
  
 
(15.1
) 
Short-term lease expense
  
 
(83.8
) 
Low-value
lease expense
  
 
(2.9
) 
Variable lease expense
  
 
(74.2
) 
Sublease income
  
 
17.5
 
Charge to operating profit
  
 
(445.0
) 
Interest expense related to lease liabilities
  
 
(99.7
) 
Charge to profit before taxation for leases
  
 
(544.7
) 
 
Variable lease payments primarily include real estate taxes and insurance costs.
 
The maturity of lease liabilities at 31 December 2019 were as follows:
 
 
  
2019
£m
 
Period ending 31 December
  
 
 
 
2020
  
 
385.9
 
2021
  
 
384.0
 
2022
  
 
335.4
 
2023
  
 
283.0
 
2024
  
 
220.5
 
Later years
  
 
1,393.7
 
 
  
 
3,002.5
 
Effect of discounting
  
 
(752.8
) 
Lease liability at 31 December 2019
  
 
2,249.7
 
Short-term lease liability
  
 
302.2
 
Long-term lease liability
  
 
1,947.5
 
 
The total committed future cash flows for leases not yet commenced at 31 December 2019 is £558.0 million.
 
The Group does not face a significant liquidity risk with regard to its lease liabilities. Refer to note 26 for management of liquidity risk.