39 Leases

39.1 Amounts recognized in the statement of financial position

The statement of financial position shows the following amounts relating to leases:

 

 

 

 

€ million

Note

2018

2017

1

In 2017, only lease liabilities in relation to leases that were classified as ‘finance leases’ under IAS 17 Leases were recognized. These were presented as part of the Group’s borrowings.

Buildings

21

97

33

Plant and machinery

21

3

0

Office equipment and vehicles

21

28

0

Total right-of-use assets

 

128

33

Current1

28

38

2

Non-current1

28

63

3

Total lease liabilities

 

101

5

Additions to the right-of-use assets during the 2018 financial year were € 140 million.

As per 31 December 2018, no residual value guarantees are included in the lease liabilities.

As per 31 December 2018, lease commitments for leases no yet commenced amounted to € 18 million.

39.2 Amounts recognized in the income statement

The income statement shows the following amounts relating to leases:

 

 

 

 

€ million

Note

2018

2017

1

In 2017, only interest expenses in relation to leases that were classified as ‘finance leases’ under IAS 17 Leases were recognized.

Depreciation charge of right-of-use assets

21

43

5

Buildings

21

27

5

Plant and machinery

21

1

0

Office equipment and vehicles

21

15

0

Interest expense1 (included in Financial expenses)

16

3

0

Expense relating to short-term leases

 

3

3

Expense relating to leases of low-value assets that are not short-term leases

 

3

3

Expense relating to variable lease payments not included in lease liabilities

 

0

0

Total expense related to leases

 

52

11

The total cash outflow for leases in 2018 was € 33 million.

In 2018 there was no material income from subleasing.

39.3 Reconciliation with operating lease commitments disclosed as at 31 December 2017

Operating lease commitments amounted to € 90 million as per 31 December 2017. On adoption of IFRS 16 on 1 January 2018 the Group recognized lease liabilities amounting to € 120 million in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 Leases. The difference of € 30 million can mainly be explained by adjustments as a result of a different treatment of extension options for an amount of € 37 million offset by the effect resulting from discounting of the lease liabilities for an amount of € 7 million.