Investor Presentaiton
80
A.P. Moller-Maersk Annual Report 2020
Financials
Consolidated financial statements
Notes index
Note 8 Right-of-use assets
Table 8.1
Ships,
containers,
Concession
agreements
Real estate
Total
etc. (non-IFRIC 12)
and other
leases
Right-of-use assets
1 January 2019
3,120
2,351
751
Transfer from IAS 17 finance leases
2,444
0
108
6,222
2,552
Additions
555
780
214
1,549
Disposal
321
2
18
341
Depreciation cost
1,023
188
185
1,396
Transfer, assets held for sale
-4
-58
-1
-63
Transfer to owned assets, etc.
-59
-1
-5
-65
Exchange rate adjustment
2
2
31 December 2019
4,712
2,884
864
8,460
Additions
1,040
240
281
1,561
Acquired in business combinations
0
0
313
Disposal
169
2
44
Depreciation cost
1,007
189
218
313
215
1,414
Transfer, assets held for sale
0
-5
-2
-7
Transfer to owned assets, etc.
-476
1
-72
-547
Exchange rate adjustment
2
137
33
172
31 December 2020
4,102
3,066
1,155
8,323
Table 8.2
Amounts recognised in profit and loss
Depreciation cost on right-of-use assets
Interest expenses (included in finance costs)
Total
2020
2019
1,414
1,396
468
477
Expenses relating to service elements of leases
799
861
Expenses relating to short-term leases
296
414
Expenses relating to variable lease payments
Expenses relating to leases of low-value assets
183
202
22
25
Total recognised in operating costs
1,300
1,502
Amounts in USD million
=
Table 8.1 and Table 8.2
As part of the Group's activities, customary leasing agree-
ments are entered, especially regarding the chartering
of vessels and leasing of containers and other equip-
ment. In some cases, the leasing agreements comprise
purchase options exercisable by the Group and options
for extending the lease term. The Group also enters into
arrangements that provide the right-to-use some existing
infrastructure or land as required to carry out the termi-
nal business.
To optimise lease costs during the contract period, the
Group sometimes provides residual value guarantees
in relation to equipment leases. At the end of 2020, the
expected residual values were reviewed to determine
if these reflect the actual residual values achieved on
comparable assets and expectations about future prices.
At 31 December 2020, USD 354m (USD 489m) is expected
to be payable and is included in the measurement of the
lease liabilities.
Leases to which A.P. Moller - Maersk is committed but for
which lease term has not yet commenced have an undis-
counted value of USD 557m (USD 481m). They comprise of
approx. 64 contracts commencing in 2021 and 2022.
Certain terminal concession agreements contain variable
payment terms that are linked to future performance, i.e.
number of containers handled, or depend on an index, or
a combination hereof. Such payments are recognised in
the income statement in the period in which the condition
that triggers those payments occurs.
Lease liabilities are disclosed in note 13 and note 16.View entire presentation