Right-of-use-assets

12 Months Ended

Dec. 31, 2020

Disclosure Of Quantitative Information About Rightofuse Assets [Abstract]

9	Right-of-use-assets

Changes in the carrying amount of right-of-use assets for the years ended December 31, 2020 and 2019, are reported in the following tables.

	Buildings			Vehicles			Total
Cost as at January 1, 2019		55,159			639			55,798
Additions		10,786			395			11,181
Disposals		—			—			—
Effect of translation adjustments		922			3			925
Cost as at December 31, 2019		66,867			1,037			67,904
Additions		10,083			—			10,083
Disposals		(6,910	)		—			(6,910	)
Adjustments due to remeasurements		693			—			693
Adjustments due to modifications		(327	)		—			(327	)
Effect of translation adjustments		(2,696	)		(14	)		(2,710	)
Cost as at December 31, 2020		67,710			1,023			68,733

Accumulated depreciation and impairment loss as at Jan. 1, 2019		—			—			—
Depreciation		(12,926	)		(301	)		(13,227	)
Impairment loss		—			—			—
Effect of translation adjustments		42			(1	)		41
Accumulated depreciation and impairment loss as at Dec. 31, 2019		(12,884	)		(302	)		(13,186	)
Depreciation		(13,066	)		(310	)		(13,376	)
Disposals		6,639			—			6,639
Impairement loss		(584	)		—			(584	)
Adjustments due to remeasurements		157			—			157
Adjustments due to modifications		—			—			—
Effect of translation adjustments		621			9			630
Accumulated depreciation and impairment loss as at Dec. 31, 2020		(19,117	)		(603	)		(19,720	)

Net book value as at January 1, 2019		55,159			639			55,798
Net book value as at December 31, 2019		53,983			735			54,718
Net book value as at December 31, 2020		48,593			420			49,013

The Group leases buildings for its retail stores, warehouses and factory facilities. These leases typically run for a period of five to ten years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term. Some of such leases provide for additional rent payments that are based on changes in local price indices. For certain of these leases, the Group is restricted from entering into any sub-lease arrangements. A significant portion of retail stores, warehouse and factory facilities leases were entered into several years ago. As at December 31, 2018, these leases were classified as operating leases under IAS 17.

The Group leases vehicles under a number of leases, which were classified as operating lease under IAS 17. The contract lease term of such leases run for a period of two to four years.

The Group leases also IT and office equipment with contract terms of one to three years. These leases are short-term and/or leases of low-value items. The Group has elected not to recognise right-of-use assets and lease liabilities for these leases.

The following tables show a breakdown of right-of-use assets based on geographical location of the cash generating units (mainly directly operated retail stores) in which they are included.

	31/12/20		31/12/19
United States of America		14,643		18,661
Italy		9,671		11,743
Spain		5,382		4,179
United Kingdom		9,274		11,119
China		5,484		2,881
Others		4,559		6,135
Total		49,013		54,718

As at December 31, 2020, the Group performed the impairment assessment of property, plant and equipment and right-of-use assets included in several cash generating units (CGUs), such as the Italian upholstered furniture plant CGU and certain directly operated retail stores CGUs that presented indicators of impairment. For additional information on the impairment assessment reference should be made to note 8.

As result of the 2020 impairment assessment performed by the Group, impairment losses of 584 have emerged for right-of-use assets.

Other information about leases for which the Group is a lessee is presented below.

(i) Amounts recognized in profit or loss under IFRS 16 for the years ended December 31, 2020 and 2019

	2020			2019
Depreciation charge of right-of-use assets		13,376			13,227
Interest on lease liabilities		2,613			2,635
Expenses relating to short-term leases		719			1,090
Expenses relating to leases of low-value assets, excluding short-term leases		122			132
Covid-19 rent concessions		(1,799	)		—
Total		15,031			17,084

(ii) Amounts recognized in profit or loss under IAS 17 for the year ended December 31, 2018

Lease expenses recognised in profit or loss under IAS 17 for the year ended December 31, 2018 amount to 17,705.

(iii) Amounts recognized in statement of cash flows for the years ended December 31, 2020 and 2019

Lease payments recognised in statement of cash flows for the years ended December 31, 2020 and 2019 amount to 12,496. and 14,251, respectively, and include interests paid for 2,589 and 2,291, respectively (see note 20).