Right-of-use Assets
As of December 31, 2023, the Company leases buildings and cars. The movement of the right-of-use assets during the year 2023 is summarized as follows:
2023
Buildings | Other fixed assets | Total | |
|---|---|---|---|
Book value at 1 January | 39 | 1 | 40 |
Additions | 54 | 1 | 55 |
Disposals | (5) | - | (5) |
Depreciation | (14) | (1) | (14) |
Impairment | - | - | - |
Foreign currency variations | 2 | 0 | 2 |
Other movements | (1) | (0) | (1) |
Total movements | 36 | 1 | 37 |
Cost | 104 | 4 | 108 |
Accumulated depreciation and impairment | (29) | (2) | (31) |
Book value at 31 December | 75 | 2 | 77 |
2022
Buildings | Other fixed assets | Total | |
|---|---|---|---|
Book value at 1 January | 44 | 1 | 45 |
Additions | 12 | 1 | 13 |
Disposals | - | (0) | (0) |
Depreciation | (14) | (1) | (15) |
(Impairment)/impairment reversal | - | - | - |
Foreign currency variations | (2) | (0) | (2) |
Other movements | (1) | (0) | (1) |
Total movements | (5) | 0 | (4) |
Cost | 72 | 3 | 75 |
Accumulated depreciation and impairment | (33) | (2) | (35) |
Book value at 31 December | 39 | 1 | 40 |
During the year 2023, the main movements regarding right-of-use assets related to US$55 million of capitalization of lease extensions and new lease office contracts, partially offset by US$14 million of depreciation charges. In March 2023, the Company extended the lease agreement of one of its office buildings until 2037. This resulted in an increase of US$43 million to right-of-use assets and a similar increase in lease liabilities (refer to note 4.3.23 Borrowings and Lease Liabilities).
Office leases
Significant contracts under buildings relate to the lease of offices. The remaining contract periods of the Company’s office rentals vary between one and ten years and most of the contracts include extension options between three and fourteen years. The extension options have been taken into account in the measurement of lease liabilities when the Company is reasonably certain to exercise these options. The lease agreements do not impose any covenants.