3.2 Lease commitments and liabilities
|
CHF million |
31.12.2022 |
31.12.2021 |
|
|
|
|
|
Lease commitments up to 1 year |
24 |
25 |
|
Lease commitments 1 to 5 years |
60 |
55 |
|
Lease commitments over 5 years |
9 |
20 |
|
Operating leases (nominal values) |
93 |
100 |
In the previous year, the increase in lease commitments is mainly due to extensions of leases in China.
Liabilities relating to financial lease contracts in the amount of CHF 14 million (previous year: CHF 7 million) were mainly due to the leasing of buildings and machines. The leasing obligations are included in "Other financial liabilities" and are disclosed in note 3.1.
Accounting principles
Finance leases are recognized in property, plant, and equipment as well as in other financial liabilities on the balance sheet when most of the contractual risks and rewards have been transferred. Lease installments are divided into an interest and a repayment component based on the annuity method. Assets held under such finance leases are depreciated over the shorter of their estimated useful life and lease term. Operating lease installments are reported in the income statement under operating expenses.