Information concerning leases (IFRS 16)
DB Group has been applying IFRS 16 since January 1, 2019 using the modified retrospective method; the previous year financial statements were thus not adjusted. The right of use resulting from a lease was shown in the amount of the present value of the payment obligation, adjusted by accruals and deferrals in relation to the lease. In order to determine the present value of the payment obligation, the remaining lease payments were discounted with the DB marginal rate for debt capital as of January 1, 2019. The weighted average rate was 1.5%. The opening balance sheet values as of January 1, 2019 for the following balance sheet items were subsequently adjusted:
Dec 31, 2018 | Adjustment due to IFRS16 | Jan 1, 2019 | |
| Property, plant and equipment | 40,757 | 4,030 | 44,887 |
Non-current receivables and other assets | 380 | 51 | 431 |
Current receivables and other assets | 1,870 | 15 | 1,885 |
Non-current financial debt | 20,626 | 3,301 | 23,927 |
Non-current other liabilities | 258 | –57 | 201 |
Current financial debt | 2,618 | 968 | 3,586 |
Current other liabilities | 3,660 | –17 | 3,643 |
DB Group has utilized an exemption specified in IFRS 16 for leases which end within a period of twelve months after the first-time adoption. These costs are included in the costs of short-term leases.
The obligations of operate leases which existed as of December 31, 2018 can be reconciled with the financial debt recognized on January 1, 2019 within the framework of the first-time adoption of IFRS 16.
IFRS 16 reconciliation (€ million) | Jun 30, 2019 |
Obligations of operate leases as of Dec 31, 2018 | 5,585 |
Obligations included from short-term leases | –286 |
Obligations included for minor-value assets | –48 |
Obligations included for software leasing | –30 |
Obligations included for leases which commenced after Dec 31, 2018 | –975 |
| Non-recognition of termination options and recognition of prolongation options | 388 |
| Discounting | –363 |
| Other | –2 |
| Additional leasing liability as of Jan 1, 2019 | 4,269 |
In the case of leases for assets of low value and for short-term leases with a term of 12 months or less, IFRS 16 provides for exemptions, which are utilized by DB Group.
With regard to the utilization rights capitalized by DB Group, the following details are relevant as of June 30, 2019 or for the first half of 2019:
(€ million) | Utilization rights: | |||||||
Land | Commercial, operating and other buildings | Permanent way structures | Track infra- structure,signaling and control equipment | Rolling stock for passenger and freight transport | Technical equipment and machinery | Other oper- ational and office equipment | Total | |
Additions | 18 | 220 | 0 | 2 | 186 | 10 | 4 | 440 |
| Depreciation | –14 | –283 | –1 | 0 | –121 | –18 | –7 | –444 |
Carrying amounts | 317 | 3,050 | 9 | 4 | 1,013 | 216 | 26 | 4,635 |
The income statement and the cash flow statement for the first half of 2019 contained the following income, expenses and payments relating to leases:
(€ million) | H 1 2019 |
OTHER OPERATING INCOME | |
Income from operate leases | 299 |
Income from sub-letting arrangements | 11 |
Depreciation and impairments | 444 |
OTHER OPERATING EXPENSES | |
Expenses for short-term leases | 161 |
Expenses for minor-value leased assets | 21 |
Variable leasing fees | – |
| NET INTEREST INCOME | |
Interest expenses | 45 |
| CASH FLOW STATEMENT | |
Payments for leasing | 477 |