macquarie.com.au  2014 Annual Financial Report  Macquarie Group Limited and its subsidiaries  Notes to the financial statements  for the financial year ended 31 March 2014  continued  Consolidated 2014  $m  Consolidated 2013  $m  Company  2014  $m  Company  2013  $m  Note 34  Contingent liabilities and commitments  The following contingent liabilities and commitments exclude derivatives.  Contingent liabilities exist in respect of:  Letters of credit  468  271  –  –  Guarantees 375  310  3,413  3,057  Performance related contingents  342  228  –  –  Indemnities  161  18  –  –  Total contingent liabilities (1) 1,346  827  3,413  3,057  Commitments exist in respect of:  Undrawn credit facilities  4,792  3,748  –  –  Forward asset purchases  455  368  –  –  Total commitments (2) 5,247  4,116  –  –  Total contingent liabilities and commitments  6,593  4,943  3,413  3,057  (1) Contingent liabilities exist in respect of actual and potential claims and proceedings that arise in the conduct of the Consolidated Entity’s  business. A provision is recognised where some loss is probable and can be reliably estimated. The Consolidated Entity is currently not  engaged in any litigation or claim which is likely to have a material adverse effect on the Consolidated Entity’s business, financial  condition or performance. (2) Total commitments also represent contingent assets. Such commitments to provide credit may convert to loans and other assets in the  ordinary course of business.  Note 35  Lease commitments Operating leases relate to commercial buildings. The future lease commitments disclosed are net of any rental incentives received.  Non-cancellable operating leases expiring:  Not later than one year  170  166  –  –  Later than one year and not later than five years  482  482  –  –  Later than five years  382  430  –  –  Total operating lease commitments  1,034  1,078  –  –  170 