12 Right-of-use assets, net and lease liabilities

Right of use assets evolution

(all amounts in thousands of U.S. dollars)

Year ended December 31, 2020	Land and Civil Buildings			Industrial Buildings, Plant and Production Equipment			Vehicles, furniture and fixtures			Total
Cost
Opening net book amount		36,137			225,389			14,194			275,720
Currency translation adjustment		(839	)		746			530			437
Increase due to business combinations (*)		3,461			13,730			7,556			24,747
Additions		11,534			42,573			5,034			59,141
Transfers / Reclassifications		439			(458	)		136			117
Disposals		(8,800	)		(8,622	)		(8,835	)		(26,257	)
At December 31, 2020		41,932			273,358			18,615			333,905


Depreciation
Accumulated at the beginning of the year		8,330			30,581			3,683			42,594
Currency translation adjustment		(92	)		145			190			243
Depreciation charge		13,200			37,671			6,920			57,791
Transfers / Reclassifications		(2,876	)		1,702			1,291			117
Disposals		(3,420	)		(2,106	)		(3,267	)		(8,793	)
Accumulated at the end of the year		15,142			67,993			8,817			91,952
At December 31, 2020		26,790			205,365			9,798			241,953

(all amounts in thousands of U.S. dollars)

Year ended December 31, 2019	Land and Civil Buildings			Industrial Buildings, Plant and Production Equipment			Vehicles, furniture and fixtures			Total
Cost
Opening net book amount		27,713			202,352			8,335			238,400
Currency translation adjustment		(88	)		6			8			(74	)
Increase due to business combinations (**)		229			2,038			-			2,267
Additions		9,292			24,985			7,165			41,442
Transfers / Reclassifications		-			496			(496	)		-
Disposals		(1,009	)		(4,488	)		(818	)		(6,315	)
At December 31, 2019		36,137			225,389			14,194			275,720


Depreciation
Accumulated at the beginning of the year		-			-			-			-
Currency translation adjustment		(3	)		3			8			8
Depreciation charge		8,514			31,869			3,908			44,291
Transfers / Reclassifications		-			(62	)		62			-
Disposals		(181	)		(1,229	)		(295	)		(1,705	)
Accumulated at the end of the year		8,330			30,581			3,683			42,594
At December 31, 2019		27,807			194,808			10,511			233,126

(*) Related to IPSCO acquisition. See note 32.

(**) Related to SSPC acquisition.

Depreciation of right-of-use assets is mainly included in Tubes segment.

The initial cost of right-of-use assets consists of the initial lease liability plus lease payments made in 2018 of approximately $4 million.

Lease liability evolution

	Year ended December 31,
(all amounts in thousands of U.S. dollars)	2020			2019

Opening net book amount		230,167			234,149
Increase due to business combinations		26,046			2,267
Translation differences		7,656			2,690
Additions		58,536			36,957
Cancellations		(17,529	)		(4,688	)
Repayments (*)		(51,666	)		(43,974	)
Interest accrued		4,133			2,766
At December 31,		257,343			230,167

(*) Repayments include capital and interest.

The amount of remaining payments with maturity less than 1 year, between 2 and 5 years and more than 5 years is approximately 16.9%, 40.5% and 42.6% of the total remaining payments, respectively.

Expenses related to short-term leases and low value leases (included in cost of sales and selling, general and administrative expenses) for the year 2020 amounted to $1.7 million and $3.2 million respectively and for the year 2019 amounted to $15.1 million and $1.3 million respectively. Expenses related to variable leases (included in cost of sales and selling, general and administrative expenses) were not material for the years 2020 and 2019.