18 Leases
Lease liabilities are initially measured at the present value of future lease payments, discounted using the incremental borrowing rate or, if available, the interest rate implicit in the lease contract. Lease payments include payments for non-lease components. Lease liabilities are subsequently measured at amortized cost using the effective interest method. Remeasurements of lease liabilities are required when there are changes in the lease term, future lease payments, or when lease options are reassessed.
Right-of-use assets are initially measured at the amount of the corresponding lease liability, adjusted for any lease payments made before the lease commencement date and any lease incentives received. The assets are subsequently depreciated on a straight-line basis over the lease term and adjusted to reflect remeasurements of the corresponding lease liability. An impairment test is performed whenever impairment indicators are identified.
Costs arising from short-term leases, variable lease payments not included in the measurement of lease liabilities, and leases of low-value assets are recognized as lease-related expenses within other operating expenses when incurred.
The Group leases land and buildings for use as office and warehouse space, with lease terms typically fixed for periods of three to ten years. In many cases, lease contracts for buildings include extension options, which provide the Group with operational flexibility and security. Such options are individually assessed to determine whether the Group is reasonably certain to exercise them. In addition, the Group maintains a fleet of leased vehicles with an average lease term of four years.
The following expenses related to the Group’s leasing activities are recognized in the income statement:
| In CHF million | 2025 | 2024 | ||
|---|---|---|---|---|
| Lease-related expenses | 35 | 25 | ||
| Depreciation of right-of-use assets | 165 | 155 | ||
| Interest expenses on lease liabilities | 22 | 20 | ||
| Total recognized in the income statement | 222 | 200 |
Right-of-use assets
| In CHF million | Land & buildings | Vehicles | Total | |||
|---|---|---|---|---|---|---|
| Net book values 2025 | ||||||
| January 1, 2025 | 277 | 230 | 507 | |||
| Additions | 78 | 136 | 214 | |||
| Disposals | –6 | – | –6 | |||
| Depreciation | –65 | –100 | –165 | |||
| Disposal of subsidiaries | – | –1 | –1 | |||
| Exchange differences | –17 | –14 | –31 | |||
| December 31, 2025 | 267 | 251 | 518 | |||
| Cost | 507 | 464 | 971 | |||
| Accumulated depreciation and impairment | –240 | –213 | –453 | |||
| December 31, 2025 | 267 | 251 | 518 | |||
| Net book values 2024 | ||||||
| January 1, 2024 | 256 | 204 | 460 | |||
| Additions | 83 | 118 | 201 | |||
| Disposals | –11 | – | –11 | |||
| Depreciation | –60 | –95 | –155 | |||
| Disposal of subsidiaries | –1 | – | –1 | |||
| Exchange differences | 10 | 3 | 13 | |||
| December 31, 2024 | 277 | 230 | 507 | |||
| Cost | 503 | 448 | 951 | |||
| Accumulated depreciation and impairment | –226 | –218 | –444 | |||
| December 31, 2024 | 277 | 230 | 507 | |||
Lease liabilities
| In CHF million | Current lease liabilities | Non-current lease liabilities | Total | |||
|---|---|---|---|---|---|---|
| January 1, 2025 | 134 | 359 | 493 | |||
| Lease payments including interest | –182 | –182 | ||||
| Non-cash items | ||||||
| Additions | 44 | 168 | 212 | |||
| Interest | 22 | 22 | ||||
| Reclassifications | 132 | –132 | – | |||
| Disposals | –3 | –4 | –7 | |||
| Disposal of subsidiaries | –1 | – | –1 | |||
| Exchange differences | –6 | –19 | –25 | |||
| December 31, 2025 | 140 | 372 | 512 | |||
| January 1, 2024 | 122 | 326 | 448 | |||
| Lease payments including interest | –172 | –172 | ||||
| Non-cash items | ||||||
| Additions | 41 | 157 | 198 | |||
| Interest | 20 | 20 | ||||
| Reclassifications | 129 | –129 | – | |||
| Disposals | –9 | –3 | –12 | |||
| Disposal of subsidiaries | – | –1 | –1 | |||
| Exchange differences | 3 | 9 | 12 | |||
| December 31, 2024 | 134 | 359 | 493 |
Additions to right-of-use assets and to lease liabilities include new leases and remeasurements of existing leases.
Total cash outflows for the Group’s leasing activities amount to CHF 217 million in the reporting year (previous year: CHF 192 million). Interest paid on lease liabilities is presented as part of interest paid within cash flow from operating activities.