23. Lease liabilities
2019 | 2018 | |
|---|---|---|
€m | €m | |
At 31 December 2018 | - | - |
Initial application of IFRS 16 | 32.0 | - |
Liabilities created | 12.5 | - |
Payments | (10.0) | - |
Lease interest expense recognised in period | 1.0 | - |
Currency Adjustment | 0.5 | - |
At 31 December 2019 | 36.0 | - |
Analysed as: | ||
Current liabilities | 8.4 | - |
Non-current liabilities | 27.6 | - |
36.0 | - |
The Group applied IFRS 16 Leases with effect from 1 January 2019 as set out at note 2 Accounting Policies. At initial application, the Group recognised right of use assets and related lease liabilities by adjusting the opening balances brought forward from the Statement of Financial Position reported at 31 December 2018. The impact of the application of IFRS 16 is set out at note 30.
The maturity profile of lease liabilities is set out below.
2019 | 2018 | |
|---|---|---|
€m | €m | |
Committed lease obligations: | ||
Within one year | 8.4 | 0.3 |
Between 1 and 2 years | 2.9 | 0.7 |
Between 2 and 3 years | 2.5 | - |
Between 3 and 4 years | 2.3 | - |
Between 4 and 5 years | 2.2 | - |
Greater than 5 years | 17.7 | - |
36.0 | 1.0 |
Outstanding lease terms vary from 1 to 7 years except in the case of leasehold land where the terms vary between 76 and 102 years. For the financial year ended 31 December 2019, the average incremental borrowing rate applying to lease liabilities was 3.1%. The incremental borrowing rate in the case of lease liabilities recognised on application of IFRS 16 was estimated at 1 January 2019 and in all other cases at the date of commencement of the lease. The incremental borrowing rate is estimated as that rate of interest available to the Group for borrowings over a similar term as the obligation to acquire a similar asset. The Group’s obligations are secured by lessors’ title to the leased assets.
All lease contracts relating to land and property contain market review clauses.
Lease obligations do not include any variable payments based on throughput of leased facilities, short term leases of less than 1 year or leases relating to low value assets. These are expensed as incurred and disclosed at note 9.