Note 12: Leases
In € millions |
Land |
Buildings |
Other |
Total |
|---|---|---|---|---|
Balance at January 1, 2019 |
|
|
|
|
Cost of acquisition |
56 |
336 |
70 |
462 |
Accumulated depreciation/impairment |
(10) |
(20) |
– |
(30) |
Opening balance 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) |
Change in exchange rates |
1 |
3 |
1 |
5 |
Total movements |
(3) |
(49) |
(6) |
(58) |
|
|
|
|
|
Cost of acquisition |
57 |
355 |
102 |
514 |
Accumulated depreciation/impairment |
(14) |
(88) |
(38) |
(140) |
Balance at December 31, 2019 |
43 |
267 |
64 |
374 |
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 outflow from financing activities related to leases recognized on the balance sheet was €108 million.
In € millions |
2019 |
|---|---|
Sublease income |
6 |
Depreciation right-of-use assets |
(105) |
Impairments for right-of-use assets |
(5) |
Interest expense on lease liabilities |
(8) |
Expenses relating to short-term leases |
(10) |
Expenses relating to low-value assets |
(4) |
Variable lease expenses |
(3) |
Total expenses |
(129) |