Note 8. Leases
Sandvik implemented IFRS 16 from January 1 2019. During 2018 Sandvik applied IAS 17.
Contracts not yet commenced amounted to 27 MSEK. For maturity analysis of the lease liability, see Note 27.
Leases with Sandvik as lessee according to IFRS 16
Group |
Land and buildings |
Plant and machinery |
Fixture and fittings |
Total |
|---|---|---|---|---|
MSEK |
|
|
|
|
Opening balance adjustment at 1 January 2019 |
2,539 |
295 |
554 |
3,389 |
Additions |
351 |
83 |
297 |
730 |
Remeasurements |
66 |
10 |
9 |
86 |
Business combinations |
21 |
— |
— |
21 |
Divestments and disposals |
–49 |
–1 |
–11 |
–61 |
Reclassifications |
–11 |
3 |
3 |
–5 |
Translation differences for the year |
58 |
3 |
13 |
72 |
Transfer asset held for sale |
–73 |
–19 |
–2 |
–94 |
At 31 December 2019 |
2,902 |
374 |
864 |
4,137 |
Depreciation for the year |
608 |
106 |
275 |
989 |
Impairment losses |
17 |
6 |
0 |
23 |
Business combinations |
0 |
— |
— |
0 |
Divestments and disposals |
–2 |
1 |
–6 |
–7 |
Reclassifications |
–3 |
–1 |
9 |
5 |
Translation differences for the year |
–4 |
–1 |
–3 |
–7 |
Transfer asset held for sale |
–27 |
–8 |
–1 |
–36 |
At 31 December 2019 |
589 |
103 |
274 |
966 |
|
|
|
|
|
Net carrying amount |
|
|
|
|
At 1 January 2019 |
2,539 |
295 |
554 |
3,389 |
At 31 December 2019 |
2,313 |
271 |
590 |
3,172 |
|
|
|
|
|
Impairment losses/reversal of impairment losses per line in the 2019 income statement |
|
|
|
|
Cost of goods sold |
17 |
6 |
0 |
23 |
Selling expenses |
— |
— |
— |
— |
Administrative expenses |
— |
— |
— |
— |
Research and Development expenses |
— |
— |
— |
— |
Total |
17 |
6 |
0 |
23 |
Group, MSEK |
2019 |
|---|---|
Depreciations for the year |
–989 |
Impairment losses/reversal of impairment losses |
–23 |
Interest expenses related to lease liabilities |
–111 |
Expenses for low value assets |
–80 |
Expenses for short–term leases |
–42 |
Expenses related to variable lease expenses not included in the lease liability |
–4 |
Gains/losses related to sale and leaseback transactions |
–0 |
Total amounts recognized in the income statement |
–1,249 |
The total cash outflow for leases during the year |
–1,071 |
Operating leases with Sandvik as lessee according to IAS 17
No comparable figures for 2019, for the Group, as Sandvik implemented IFRS 16.
|
Group |
Parent Company |
||
|---|---|---|---|---|
|
|
|
|
|
|
2018 |
2019 |
2018 |
2019 |
Within one year |
1,143 |
— |
186 |
135 |
Between one and five years |
2,265 |
— |
479 |
374 |
Later than five years |
829 |
— |
333 |
223 |
Net carrying amount |
4,237 |
— |
998 |
732 |
Financial leases with Sandvik as lessor
The Group’s investments in financial leases amounted to 3,413 million SEK (2,880) at year-end 2019. Finance income was 93 million SEK (—). Variable fees recognized in profit/loss, and unguaranteed residual values accruing to the benefit of the lessor, were minor. The gross investment and the present value of minimum lease payments fall due as follows:
|
Nominal fee |
Present value |
||
|---|---|---|---|---|
|
|
|
|
|
Group |
2018 |
2019 |
2018 |
2019 |
Within one year |
1,517 |
1,883 |
1,431 |
1,763 |
Between one and five years |
1,347 |
1,529 |
1,291 |
1,763 |
Later than five years |
16 |
1 |
4 |
0 |
Net carrying amount |
2,880 |
3,413 |
2,726 |
3,527 |
Operating leases with Sandvik as lessor
The planned residual value of the Group’s rental fleet is 1,071 million SEK (943). Depreciation for the year amounted to 472 million SEK (609). Loss on disposed assets was –14 million SEK (–27). The future minimum lease payments under non-cancellable leases amount to 782 million SEK (824). Variable fees amounted to 10 million SEK (17). Future minimum lease payments under non-cancellable cancel operating lease contracts fall due as follows:
|
Group |
Parent Company |
||
|---|---|---|---|---|
|
|
|
|
|
|
2018 |
2019 |
2018 |
2019 |
Within one year |
459 |
384 |
— |
— |
Between one and five years |
361 |
398 |
— |
— |
Later than five years |
4 |
0 |
— |
— |
Net carrying amount |
824 |
782 |
— |
— |