Assets for Rights of Use and Lease Liabilities

12 Months Ended

Dec. 31, 2023

Presentation of leases for lessee [abstract]

Assets for Rights of Use and Lease Liabilities

9. ASSETS FOR RIGHTS OF USE AND LEASE LIABILITIES

Group as a lessee

The Group has lease contracts for various items of plant, machinery, vehicles and other equipment used in its operations. Leases of plant and machinery generally have lease terms between 3 and 20 years, while motor vehicles and other equipment generally have lease terms between 3 and 5 years. The Group’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Group is restricted from assigning and subleasing the leased assets.

Set out below are the carrying amounts of right-of-use assets recognized and the movements during the periods:


(In thousand Euros)	Buildings			Vehicles			Other assets			Total
Balance at January 1, 2022		16,819			966			719			18,504
Additions		7,877			758			64			8,699
Business combinations (Note 6)		402			—			822			1,224
Depreciation for the year		(2,560	)		(527	)		(310	)		(3,397	)
Others		(553	)		—			—			(553	)
Translation differences		413			(2	)		—			411
Balance at December 31, 2022		22,398			1,195			1,295			24,888
Additions		272			522			592			1,386
Business combinations (Note 6)		9,387			547			3,080			13,014
Depreciation for the year		(2,561	)		(657	)		(590	)		(3,808	)
Others		245			—			—			245
Translation differences		(246	)		(56	)		—			(302	)
Balance at December 31, 2023		29,495			1,551			4,377			35,423

Main variation in 2023 is explained by the additions of ABL’s Group leases. These mainly refer to a couple of production and storage facilities and some production machinery. Additions in 2022 primarily related to the facility in Arlington, Texas (USA) with a lease term of 10 years.

Set out below are the carrying amounts of lease liabilities and the movements during the periods:


(In thousand Euros)	Buildings			Vehicles			Other assets			Total
Balance at January 1, 2022		18,115			968			626			19,709
Additions to liabilities		7,783			663			71			8,517
Business combinations (Note 6)		402			—			586			988
Interest on lease liabilities		1,210			40			17			1,267
Lease payments		(2,322	)		(492	)		(315	)		(3,129	)
Others		(340	)		—			—			(340	)
Translation differences		289			—			—			289
Balance at December 31, 2022		25,137			1,179			985			27,301
Additions to liabilities		272			522			592			1,386
Business combinations (Note 6)		9,387			547			3,080			13,014
Interest on lease liabilities		1,230			41			70			1,341
Lease payments		(2,742	)		(681	)		(727	)		(4,150	)
Others		245			—			—			245
Translation differences		(66	)		(94	)		—			(160	)
Balance at December 31, 2023		33,463			1,514			4,000			38,977

An analysis of the contractual maturity of lease liabilities, including future interest payable, is as follows:


(In thousand Euros)	December 31, 2023		December 31, 2022		December 31, 2021
6 months or less		3,491		1,892		1,189
6 months to 1 year		3,339		1,952		1,223
From 1 to 2 years		5,760		3,879		2,371
From 2 to 5 years		13,925		9,844		6,713
More than 5 years		25,020		17,820		15,320
Total		51,535		35,387		26,816

Amounts recognized in profit or loss derived from lease liabilities and expenses on short-term and low value leases (IFRS 16 exemption applied) are as follows:


(In thousand Euros)	2023		2022		2021
Interest on lease liabilities (see note 22)		1,341		1,267		631
Expenses relating to short-term and low value leases (see note 20)		2,314		3,454		567

Of the leasing contracts, those related to vehicle rental do not have extension options, whereas leasing contracts for plants and office buildings may include extension options that have been considered from the inception of the lease.