in € millions | 12/31/2017 | 12/31/2016 |
---|---|---|
Guarantees | 28 | 30 |
Rental and lease commitments for already used real estate and movables | 1.475 | 1.740 |
Commitments from assets under construction | 185 | – |
Other commitments | 3.522 | 3.981 |
5.210 | 5.751 |
Commitments from assets under construction result from lease contracts for assets, which were not completed at the end of the reporting period. The right of use will begin in future periods. All commitments from assets under construction relate to contracts entered into during the reporting period. The commitments relate in the amount of €36 million to periods between one and five years and in the amount of €148 million to periods of more than five years. There were no such commitments in the previous year. Of other commitments, €2,481 million (previous year: €2,932 million) pertains to RTL Group. These relate to supply agreements for productions and co-productions, contracts for TV licenses and broadcasting rights, and other rights and services. A further €786 million (previous year: €782 million) of other commitments pertains to Penguin Random House, which represents the portion of obligations to authors for which no payments have yet been made, where future payments are contingent upon other events (such as delivery and acceptance of manuscripts). Other commitments of €18 million (previous year: €22 million) are for the acquisition of property, plant and equipment.
The following minimum lease payments exist from all of the Group’s long-term rental commitments classified as operating leases:
in € millions | 12/31/2017 | 12/31/2016 |
---|---|---|
Nominal amount | ||
Up to 1 year | 276 | 285 |
1 to 5 years | 653 | 765 |
Over 5 years | 546 | 691 |
1,475 | 1,741 | |
Present value | 1,261 | 1,501 |
These commitments largely concern tenancy. They are partially offset by expected minimum lease payments from subleases with a nominal amount of €14 million (previous year: €60 million). The net present values calculated considering country-specific interest rates show all of the net payments required to settle the obligation.