7. Leases
Audited information- Index
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in CHF m |
31.12.2019 |
01.01.2019 |
||||
|---|---|---|---|---|---|---|
|
||||||
Right-of-use assets - net book value |
|
|
||||
Leasehold land1 |
21 |
18 |
||||
Buildings |
175 |
180 |
||||
Machinery and equipment |
25 |
19 |
||||
Furniture, vehicles, computer hardware |
32 |
39 |
||||
Total |
253 |
256 |
||||
Reclassified to held for sale (see note 25) |
–34 |
— |
||||
Total as reported in the balance sheet |
219 |
256 |
||||
Lease liabilities |
|
|
||||
Non-current lease liabilities |
195 |
187 |
||||
Current lease liabilities |
51 |
62 |
||||
Total |
246 |
249 |
||||
Reclassified to held for sale (see note 25) |
–29 |
— |
||||
Total as reported in the balance sheet |
217 |
249 |
||||
Additions to the right-of-use assets during 2019 were CHF 65 million.
Consolidated income statements include the following amounts relating to leases:
in CHF m |
2019 |
|
|---|---|---|
Depreciation expense |
|
|
Leasehold land |
–2 |
|
Buildings |
–32 |
|
Machinery and equipment |
–8 |
|
Furniture, vehicles, computer hardware |
–16 |
|
Total depreciation |
–58 |
|
Interest expense, included in finance costs |
–12 |
|
Expense relating to short-term leases |
–16 |
|
Expense relating to leases of low-value assets |
–7 |
|
Expense relating to variable lease payments not included in lease liabilities |
— |
|
Total |
–93 |
|
Thereof reported under discontinued operations |
2 |
|
Total continuing operations |
–91 |
The total cash outflow for leases in 2019 was CHF 70 million.
There are no significant commitments for leases not commenced at year-end.
On adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had been previously classified as operating leases under IAS 17 Leases.
The potential future cash outflows in the amount of CHF 1 million that are not reflected in the measurement of lease liabilities as at 31 December 2019 arising only from the extension option.
The reconciliation from operating lease commitments under IAS 17 as at 31 December 2018 to lease liabilities under IFRS 16 as at 1 January 2019 is as follows:
in CHF m |
01.01.2019 |
|
|---|---|---|
Obligation from operating leases as at 31 December 2018 |
260 |
|
Effect of discounting |
-35 |
|
Carrying amount of finance lease liabilities as at 31 December 2018 |
17 |
|
Short-term leases and low-value leases recognized on a straight-line basis as expense |
-7 |
|
Adjustments as a result of a different treatment of extension and termination options |
15 |
|
Other adjustments |
-1 |
|
Total |
249 |
The weighted-average incremental borrowing rate for lease liabilities initially recognized as of 1 January 2019 was approximately 3.4%.
The International Financial Reporting Standards (IFRS) are international accounting standards. View entire glossary