Table:
| USDm | 2019 | 2018 |
| --- | --- | --- |
| Maturity analysis - contractual undiscounted cash flow |  |  |
| Less than one year | 7.5 | 5.2 |
| One to five years | 27.6 | 25.6 |
| More than five years | 0.1 | - |
| Total undiscounted lease liabilities as of 31 December | 35.2 | 30.8 |
| Lease liabilities included under "Borrowings" as of 31 December | 30.6 | 25.3 |
| Non-current | 10.2 | 3.2 |
| Current | 20.4 | 22.1 |
Paragraphs:
Lease liabilities regarding right-of-use assets are included on the balance sheet under “Borrowings”.
Extension and termination options are included in several leases in order to optimize operational flexibility in terms of managing contracts. The lease term determined by TORM is the noncancellable period of a lease, together with any extension/termination options if these are/are not reasonably certain to be exercised.
Question:
Why are extension and termination options are included in several leases?
Answer: to optimize operational flexibility in terms of managing contracts