20 RIGHT-OF-USE ASSETS (GROUP AS LESSEE)
This note provides information for leases where the Group is a lessee. For leases where the Group is a lessor see note 5.
20.1 AMOUNTS RECOGNIZED IN THE FINANCIAL STATEMENTS
The amounts recognized in the balance sheet are as follows:
Balance at January 1, 2019
Acquisition through business combination
Additions and subsequent measurement
Balance at December 31, 2019
The related lease liabilities are disclosed in note 22.
The amounts recognized in the statement of profit or loss are as follows:
Depreciation expense of right-of-use assets
Expense related to short-term leases
Interest cost on lease liabilities (included in finance cost)
Total amount recognized in profit or loss
In financial year 2019, the Group paid a total amount of CHF 10.6 million to its lessors.
20.2 ADDITIONAL DISCLOSURES
The Group has several property lease contracts that include renewal and termination options. Where useful, the Group aims to incorporate options into its leases in order to maximize operational flexibility. Normally, these options are exercisable only by the lessee and not by the lessors. For the main locations, the undiscounted potential future rental payments relating to periods following the exercise date of the options are estimated at CHF 43.2 million, of which CHF 15.1 million, particularly the headquarters in Switzerland, are considered in the valuation of the right-of-use assets as at December 31, 2019.
At year-end 2019, there was one material new lease commitment amounting to CHF 2.8 million with commencement date after the balance sheet date.
20.3 INFORMATION FOR PRIOR YEAR 2018 REPORTED UNDER THE OLD STANDARD IAS 17 ‘LEASES’
The future minimum lease payments (payables) under non-cancellable operating leases are:
Within one year
In 1 to 3 years
In 3 to 5 years
After 5 years
Total future minimum lease payments (payables)
The commitments arising from operating leases are largely rental payments for buildings and are reported off-balance sheet. In financial year 2018, CHF 10.9 million were recognized as expenses for leases in the consolidated statement of profit or loss.