13 Right-of-use assets and lease liabilities

(€ million)	Floating production storage and offloading vessels (FPSO)		Drilling rig		Naval facilities and related logistic bases for oil and gas transportation		Motorway concessions and service stations		Oil and gas distribution facilities		Office buildings		Vehicles		Other		Total
2022
Net carrying amount - beginning of the year	2,667		183		575		454		14		618		48		262		4,821
Additions	1,342		189		530		76		28		108		21		110		2,404
Depreciation ^(a)	(226	)	(197	)	(303	)	(70	)	(13	)	(130	)	(21	)	(53	)	(1,013	)
Impairments					(5	)			(5	)			(1	)	(7	)	(18	)
Reversals					14												14
Currency translation differences	239		12		10		3				3						267
Changes in the scope of consolidaion	(1,878	)	(34	)	(39	)					(1	)			73		(1,879	)
Other changes	(2	)	(5	)	(100	)	(6	)	(5	)	(3	)	(5	)	(24	)	(150	)
Net carrying amount - end of the year	2,142		148		682		457		19		595		42		361		4,446
Gross carrying amount - end of the year	2,507		516		1,360		734		87		1,010		86		562		6,862
Provisions for depreciation and impairment	365		368		678		277		68		415		44		201		2,416
2021
Net carrying amount - beginning of the year	2,672		244		446		424		11		652		32		162		4,643
Additions			215		583		104		23		34		40		105		1,104
Depreciation ^(a)	(217	)	(170	)	(274	)	(63	)	(11	)	(122	)	(22	)	(49	)	(928	)
Impairments					(25	)	(6	)	(14	)					(14	)	(59	)
Currency translation differences	213		12		11		3				8				6		253
Changes in the scope of consolidaion											(6	)			116		110
Other changes	(1	)	(118	)	(166	)	(8	)	5		52		(2	)	(64	)	(302	)
Net carrying amount - end of the year	2,667		183		575		454		14		618		48		262		4,821
Gross carrying amount - end of the year	3,366		572		1,268		666		66		948		84		433		7,403
Provisions for depreciation and impairment	699		389		693		212		52		330		36		171		2,582

^(a) Before capitalization of depreciation of tangible assets

Right-of-use assets (RoU) of €4,446 million related: (i) for €2,653 million (€3,195 million at December 31, 2021) to the Exploration & Production segment and mainly comprised leases of certain FPSO vessels hired in connection with operations at offshore development projects in Ghana (OCTP) and Area 1 in Mexico with an expected term ranging between 17 and 18 years, including a renewal option as well as multi-year leases of offshore drilling rigs; (ii) for €800 million (€765 million at December 31, 2021) to the Refining & Marketing and Chemical segment relating to highways concessions to market fuels, land leases, leases of service stations for the sale of oil products, leasing of vessels for shipping activities and the car fleet dedicated to the car sharing business; (iii) for €548 million (€541 million at December 31, 2021) to the Corporate and other activities segment mainly regarding property rental contracts.

The increase recorded in 2022 mainly referred to: (i) the Exploration & Production segment for €1,835 million relating to the start of operations of the FPSO vessel operating Area 1 offshore Mexico (€1,342 million), vessels and related logistics equipments for Oil & Gas transport (€223 million) and the rental of drilling rigs (€189 million); (ii) the Refining & Marketing business line for €357 million, relating in particular to the lease of vessels for shipping and storage activities of Eni Trade & Biofuels SpA (€252 million), new contracts and extension of existing contracts relating motorway concessions, land leases, service station leases and the car fleet dedicated to the car sharing business (€83 million); (iii) to the Corporate and other activities segment for €91 million relating to a new aircraft sold and repurchased through the leaseback agreement (€54 million) and leasing of assets for staff activities (company cars, IT, real estate) (€33 million); (iv) the Global Gas & LNG Portfolio sector for €82 million relating to LNG transport vessels (€78 million).

Changes in the scope of consolidation referred for €1,952 million to the derecognition of the Angolan companies transferred to the JV Azule Energy Holdings Ltd and positive €73 million to the consolidation of the companies acquired from the Plenitude business line.

The main leasing contracts signed for which the asset is not yet available concern: (i) a contract with a nominal value of €437 million relating to leasing of office buildings with an expiry date of 20 years including an extension option of 6 years; (ii) storage capacity and time charter vessels rental contracts of €268 million; (iii) contracts relating to new drilling rigs for €188 million.

Main future cash outflows potentially due not reflected in the measurements of lease liabilities related to: (i) options for the extension or termination of lease for office buildings of €1,180 million; (ii) extension options related to service stations for the sale of oil products of €121 million; (iii) other extension options related to ancillary assets in the upstream business for €168 million.

Liabilities for leased assets were as follows:

(€ million)	Current portion of long-term lease liabilities		Long-term lease liabilities		Total
2022
Carrying amount - beginning of the year	948		4,389		5,337
Additions			2,401		2,401
Decreases	(980	)	(14	)	(994	)
Currency translation differences	43		242		285
Changes in the scope of consolidation	(299	)	(1,654	)	(1,953	)
Other changes	1,172		(1,297	)	(125	)
Carrying amount - end of the year	884		4,067		4,951
2021
Carrying amount - beginning of the year	849		4,169		5,018
Additions			1,102		1,102
Decreases	(934	)	(5	)	(939	)
Currency translation differences	38		231		269
Changes in the scope of consolidation	14		89		103
Other changes	981		(1,197	)	(216	)
Carrying amount - end of the year	948		4,389		5,337

Lease liabilities related for €494 million (€1,684 million at December 31, 2021) to the portion of the liabilities attributable to joint operators in Eni-led projects which will be recovered through the mechanism of the cash calls.

Total cash outflows for leases consisted of the following: (i) cash payments for the principal portion of the lease liability for €994 million; (ii) cash payments for the interest portion of €315 million.

Lease liabilities stated in U.S. dollars and euro amounted to €3,296 million and €1,491 million, respectively.

Other changes in right-of-use assets and lease liabilities essentially related to early termination or renegotiation of lease contracts.

Liabilities for leased assets with related parties are described in note 36 — Transactions with related parties.

The amounts recognised in the profit and loss account consist of the following:

(€ million)	2022		2021		2020
Other income and revenues
Income from remeasurement of lease liabilities	6		18		12
	6		18		12
Purchases, services and other
Short-term leases	113		85		67
Low-value leases	27		31		37
Variable lease payments not included in the measurement of lease liabilities	14		14		7
Capitalized direct cost associated with self-constructed assets - tangible assets	(5	)	(4	)	(2	)
	149		126		109
Depreciation and impairments
Depreciation of RoU leased assets	1,013		928		928
Capitalized direct cost associated with self-constructed assets - tangible assets	(186	)	(110	)	(96	)
Impairments of RoU leased assets	18		59		47
Reversals of RoU leased assets	(14	)
	831		877		879
Finance income (expense) from leases
Interests on lease liabilities	(315	)	(304	)	(347	)
Capitalized finance expense of RoU leased assets - tangible assets	8		5		7
Net currency translation differences on lease liabilities	(4	)	(34	)	24
	(311	)	(333	)	(316	)