Table:
|  | 2019 | 2018 |
| --- | --- | --- |
|  | $M | $M |
| Capital expenditure commitments |  |  |
| Estimated capital expenditure under firm contracts, payable: |  |  |
| Not later than one year | 398 | 416 |
| Later than one year, not later than two years | – | – |
| Later than two years, not later than five years | – | – |
| Total capital expenditure commitments | 398 | 416 |
| Operating lease commitments |  |  |
| Future minimum rentals under non-cancellable operating leases, payable: |  |  |
| Not later than one year | 1,998 | 2,089 |
| Later than one year, not later than five years | 7,415 | 7,484 |
| Later than five years | 12,378 | 13,331 |
| Total operating lease commitments | 21,791 | 22,904 |
| Total commitments for expenditure | 22,189 | 23,320 |
Paragraphs:
This section presents the Group’s contractual obligation to make a payment in the future in relation to purchases of property, plant and equipment, and lease commitments.
Capital expenditure and operating lease commitments of the Group at the reporting date are as follows:
The commitments set out above do not include contingent turnover rentals, which are charged on many retail premises leased by the Group. These rentals are calculated as a percentage of the turnover of the store occupying the premises, with the percentage and turnover threshold at which the additional rentals commence varying with each lease agreement.
The Group leases retail premises and warehousing facilities which are generally for periods up to 40 years. The operating lease commitments include leases for the Norwest office and distribution centres. Generally the lease agreements are for initial terms of between five and 25 years and most include multiple renewal options for additional five to 10-year terms. Under most leases, the Group is responsible for property taxes, insurance, maintenance, and expenses related to the leased properties. However, many of the more recent lease agreements have been negotiated on a gross or semi-gross basis, which eliminates or significantly reduces the Group’s exposure to operational charges associated with the properties.
From 1 July 2019, the Group adopted AASB 16 Leases and as a result the operating lease commitments set out above have been recognised in the Consolidated Statement of Financial Position, with the exception of the service component of lease payments. Refer to Note 1.2.6 for a reconciliation between the operating lease commitments at 30 June 2019 and the lease liabilities recognised at 1 July 2019.
Question:
What establishments do the Group lease?
Answer: The Group leases retail premises and warehousing facilities which are generally for periods up to 40 years.