Note 9: Property, plant and equipment
in € millions |
Buildings and land |
Plant equipment and machinery |
Other equipment |
Construction in progress and prepayments on projects |
Assets |
Total |
|
|
|
|
|
|
|
Balance at January 1, 2015 |
|
|
|
|
|
|
Cost of acquisition |
2,319 |
6,261 |
922 |
813 |
70 |
10,385 |
Accumulated depreciation/impairments |
(1,193) |
(4,533) |
(695) |
(68) |
(61) |
(6,550) |
Carrying value |
1,126 |
1,728 |
227 |
745 |
9 |
3,835 |
|
|
|
|
|
|
|
Movements in 2015 |
|
|
|
|
|
|
Acquisitions |
– |
11 |
1 |
1 |
– |
13 |
Divestments |
(8) |
(11) |
(6) |
(4) |
(1) |
(30) |
Capital expenditures |
21 |
134 |
31 |
465 |
– |
651 |
Transfer between categories |
81 |
279 |
60 |
(420) |
– |
– |
Depreciation |
(75) |
(336) |
(76) |
– |
– |
(487) |
Impairments |
(11) |
(2) |
(1) |
(7) |
– |
(21) |
Changes in exchange rates |
12 |
16 |
6 |
9 |
(1) |
42 |
Total movements |
20 |
91 |
15 |
44 |
(2) |
168 |
|
|
|
|
|
|
|
Balance at December 31, 2015 |
|
|
|
|
|
|
Cost of acquisition |
2,403 |
6,670 |
999 |
863 |
66 |
11,001 |
Accumulated depreciation/impairments |
(1,257) |
(4,851) |
(757) |
(74) |
(59) |
(6,998) |
Carrying value at December 31, 2015 |
1,146 |
1,819 |
242 |
789 |
7 |
4,003 |
|
|
|
|
|
|
|
Movements in 2016 |
|
|
|
|
|
|
Acquisitions |
6 |
44 |
– |
– |
– |
50 |
Divestments |
(12) |
(3) |
(3) |
(1) |
– |
(19) |
Capital expenditures |
31 |
99 |
36 |
468 |
– |
634 |
Transfer between categories |
80 |
207 |
46 |
(333) |
– |
– |
Depreciation |
(74) |
(326) |
(81) |
– |
(1) |
(482) |
Impairments |
(7) |
(6) |
(3) |
(3) |
– |
(19) |
Other |
– |
28 |
– |
– |
– |
28 |
Changes in exchange rates |
15 |
16 |
(4) |
(32) |
– |
(5) |
Total movements |
39 |
59 |
(9) |
99 |
(1) |
187 |
|
|
|
|
|
|
|
Balance at December 31, 2016 |
|
|
|
|
|
|
Cost of acquisition |
2,529 |
6,987 |
1,052 |
976 |
57 |
11,601 |
Accumulated depreciation/impairments |
(1,344) |
(5,109) |
(819) |
(88) |
(51) |
(7,411) |
Carrying value at December 31, 2016 |
1,185 |
1,878 |
233 |
888 |
6 |
4,190 |
Capital expenditures
- In Decorative Paints, we continued to invest in growth markets, with investments in our Chengdu Plant, China, in creating efficiency in Europe, in particular in Ashington, UK, and through optimization of our manufacturing footprint
- In Performance Coatings, we invested in production facilities in mature and growth markets to increase capacity and improve efficiency. In 2016, we started building a new production facility for powder coatings near Mumbai, India and another in Changzhou, China
- In Specialty Chemicals, we invested in several asset integrity and efficiency improvement projects as well as growth projects for specific segments. In 2016, we officially opened two new plants at our Ningbo multi-site in China, where Polymer Chemicals commissioned the world’s largest DCP plant and Surface Chemistry inaugurated a new finishing (alkoxylation) plant
Impairments
The impairments recorded in 2016 were mainly related to assets of Performance Coatings. In 2015, several small impairments were recorded, spread over all businesses.
Financial lease
The carrying value of the property, plant and equipment financed by hire purchase and leasing and not legally owned by the company was €63 million (2015: €39 million) of which €36 million is related to Buildings and land and €27 million to Plant equipment and machinery.
In 2016, we entered into new financial leases of €28 million, which were reported on the line Other.