Note 13: Leases
In € millions |
Land |
Buildings |
Other |
Total |
|---|---|---|---|---|
Balance at January 1, 2019 |
|
|
|
|
Cost of acquisition |
56 |
336 |
70 |
462 |
Accumulated depreciation/ |
(10) |
(20) |
— |
(30) |
Carrying value at January 1, 2019 |
46 |
316 |
70 |
432 |
|
|
|
|
|
Movements in 2019 |
|
|
|
|
Additions |
1 |
18 |
32 |
51 |
Modifications |
(1) |
1 |
— |
— |
Disposals |
— |
(3) |
(1) |
(4) |
Depreciation |
(4) |
(63) |
(38) |
(105) |
Impairments |
— |
(5) |
— |
(5) |
Changes in exchange rates |
1 |
3 |
1 |
5 |
Total movements |
(3) |
(49) |
(6) |
(58) |
Balance at December 31, 2019 |
|
|
|
|
Cost of acquisition |
57 |
355 |
102 |
514 |
Accumulated depreciation/ |
(14) |
(88) |
(38) |
(140) |
Carrying value at December 31, 2019 |
43 |
267 |
64 |
374 |
|
|
|
|
|
Movements in 2020 |
|
|
|
|
Additions |
2 |
52 |
43 |
97 |
Modifications |
— |
(13) |
1 |
(12) |
Disposals |
(1) |
(6) |
(9) |
(16) |
Depreciation |
(3) |
(60) |
(36) |
(99) |
Impairments |
— |
(7) |
— |
(7) |
Changes in exchange rates |
(2) |
(8) |
(3) |
(13) |
Total movements |
(4) |
(42) |
(4) |
(50) |
Balance at December 31, 2020 |
|
|
|
|
Cost of acquisition |
55 |
353 |
102 |
510 |
Accumulated depreciation/ |
(16) |
(128) |
(42) |
(186) |
Carrying value at December 31, 2020 |
39 |
225 |
60 |
324 |
AkzoNobel mainly leases land, office spaces, stores and cars. Some leases provide for additional rent payments that are based on changes in local price indices.
Some property leases contain extension options exercisable by AkzoNobel up to one year before the end of the non-cancellable contract period. We have estimated that the lease liability would increase by less than 20%, if we would exercise the extension options which are currently not included in the valuation of the lease liability. This excludes so-called “evergreens” or perpetual leases.
Total net cash out flow from financing activities related to leases recognized on the balance sheet was €105 million (2019: €108 million). Net cash outflow for leases not recognized on the balance sheet was €17 million (2019: €17 million).
Refer to Note 27 Financial risk management for the maturities of lease liabilities.
In € millions |
2019 |
2020 |
|---|---|---|
Sub lease income |
6 |
10 |
Depreciation right-of-use assets |
(105) |
(99) |
Impairments for right-of-use assets |
(5) |
(7) |
Interest expense on lease liabilities |
(8) |
(6) |
Short-term lease expenses |
(10) |
(9) |
Expenses relating to low-value assets |
(4) |
(4) |
Variable lease expenses |
(3) |
(4) |
Total expenses |
(129) |
(119) |