Notes to the Consolidated Financial Statements Notes to the Consolidated Financial Statements The consolidated income statement shows the following amounts relating to leases: The movements in net deferred tax assets (liabilities) during the reporting period are as follows: in CHF million 22002200 2019 in CHF million Inventories Fixed and Provisions Receivables Tax Trade Other TToottaall intangible and losses payables Depreciation (140.4) (143.6) assets employee and Interest expense (included in finance cost) (15.5) (18.2) benefits contract Expense relating to short-term leases (13.4) (16.3) liabilities Expense relating to low-value asset that are not short-term leases (13.8) (12.5) Expense relating to variable lease payments not included in lease liabilities (30.7) (31.1) Net deferred income tax Expense relating to leases relating to software and other intangible assets (14.3) (11.5) assets/(liabilities) Opening balance at January 1, 2020 6622..77 1111..66 8844..44 ((221122..00)) 88..33 4411..99 2266..44 2233..33 The total cash outflow for the leases is CHF 219.5 million (2019: CHF 225.8 million). (Charged)/credited to income statement (2.2) 3.9 3.1 (11.1) (2.0) – 7.0 (1.3) (Charged)/credited to OCI – – (2.0) – – – – (2.0) (10) Investments in associates and joint ventures Currency translation adjustment (4.9) (1.8) (1.8) 3.6 (0.4) (1.3) (3.0) (9.6) Closing balance at December 31, The Group has not acquired new ownership interests in associates nor new joint ventures during the reporting period. 2020 5555..66 1133..77 8833..77 ((221199..55)) 55..99 4400..66 3300..44 1100..44 (11) Deferred income taxes Opening balance at January 1, 2019 5533..44 ((33..66)) 7722..33 ((118822..88)) 99..55 3377..44 2266..66 1122..88 Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current (Charged)/credited to income tax liabilities and when the deferred income taxes relate to the same fiscal authority. The net book values are as follows: statement 10.7 18.6 (0.6) (36.3) (0.9) 5.7 0.1 (2.7) in CHF million 22002200 2019 (Charged)/credited to OCI – – 13.4 – – – – 13.4 Currency translation adjustment (1.4) (3.4) (0.7) 7.1 (0.3) (1.2) (0.3) (0.2) Recovery of deferred tax balances Closing balance at December 31, More than 1 year (122.9) (119.0) 2019 6622..77 1111..66 8844..44 ((221122..00)) 88..33 4411..99 2266..44 2233..33 Less than 1 year 133.3 142.3 Total 1100..44 2233..33 The category ‘inventories’ includes the tax effects of temporary differences arising on unrealized intercompany profits, as well as those arising on differences between tax and accounting treatment regarding inventory measurements at the legal entity. The category ‘fixed Components of deferred tax balances and intangible assets’ includes the tax effects of temporary differences arising both on intangible assets and property, plant and Inventories 55.6 62.7 equipment. The category ‘provisions and employee benefits’ includes items charged/credited to OCI which are tax effects of temporary Fixed and intangible assets 13.7 11.6 differences arising on remeasurements on defined benefit pension plans. The category ‘receivables’ includes tax effects on temporary Provisions and employee benefits 83.7 84.4 differences arising on fleet management sales/receivables due to the different treatment in some tax legislations (operating lease) and Receivables (219.5) (212.0) IFRS (finance lease), as well as on differences between tax and accounting treatment regarding receivable measurements at the legal Tax losses 5.9 8.3 entity. The category ‘accounts payable and contract liabilities’ mainly includes tax effects on temporary differences arising on contract Trade payables and contract liabilities 40.6 41.9 liability due to different treatment of revenue recognition in some tax legislations. The category ‘other’ mainly includes tax effects on Other 30.4 26.4 temporary differences arising on accruals and financial instruments as well the net effect on the right of use assets and the corresponding Total 1100..44 2233..33 lease liabilities. of which recognized as deferred tax assets 134.3 143.0 of which recognized as deferred tax liabilities (123.9) (119.7) 2020 Financial Report | 42 2020 Financial Report | 43