Note 8. Fees for finance and operating leases

Finance leases

Finance leases with Sandvik as lessee

The Group leases assets under finance lease agreements. At 31 December 2018, the planned residual value of such leased assets was 36 million SEK (42). Variable fees recognized as expenses totaled 16 million SEK (11).Future minimum lease payments in respect of non-cancellable contracts fall due as follows:

Finance leases with Sandvik as lessor

The Group’s investments in finance leases amounted to 2,881 million SEK (2,224) at year-end 2017. Variable fees recognized in profit/loss, and unguaranteed residual values accruing to the benefit of the lessor, were minor. The gross investment and the present value of minimum lease payments fall due as follows:

Operating leases

Operating leases with Sandvik as lessee

Leasing fees for assets under operating leases, such as leased premises, machinery and major items of computer and office equipment, are recognized within operating expenses. In 2018, the Group expensed 1,233 million SEK (861), including minimum lease payments of 1,231 million SEK (864), variable fees of 11 million SEK (3), and net of sublease income of –9 million SEK (–7). The Parent Company expensed 241 million SEK (219).

Future minimum lease payments under non-cancellable operating lease contracts fall due as follows:

Future minimum lease payments under non-cancellable lease contracts that pertain to subleased items amounted to 171 million SEK (156).

Operating leases with Sandvik as lessor

The planned residual value of the Group’s rental fleet is 943 million SEK (836). Depreciation for the year amounted to 602 million SEK (599). The future minimum lease payments under non-cancellable leases amount to 824 million SEK (713). Variable fees amounted to 17 million SEK (29). Future minimum lease payments under non-cancellable operating lease contracts fall due as follows: