Note 8: Property, plant and equipment

In € millions

 

Buildings and land

 

Plant equipment and machinery

 

Other equipment

 

Construction in progress and prepayments on projects

 

Assets not used in the production process

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2013

 

 

 

 

 

 

 

 

 

 

 

 

Cost of acquisition

 

2,295

 

5,943

 

818

 

648

 

30

 

9,734

Accumulated depreciation/impairment

 

(1,138)

 

(4,223)

 

(604)

 

(8)

 

(22)

 

(5,995)

Carrying value

 

1,157

 

1,720

 

214

 

640

 

8

 

3,739

 

 

 

 

 

 

 

 

 

 

 

 

 

Movements in 2013

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions through business combinations

 

2

 

1

 

 

 

 

3

Transfer to assets held for sale

 

(23)

 

(24)

 

(3)

 

(1)

 

 

(51)

Divestments

 

(22)

 

(33)

 

(6)

 

3

 

(1)

 

(59)

Capital expenditures

 

47

 

178

 

53

 

387

 

1

 

666

Transfer between categories

 

66

 

267

 

17

 

(351)

 

1

 

Depreciation

 

(75)

 

(321)

 

(75)

 

 

(1)

 

(472)

Impairment

 

(30)

 

(34)

 

(2)

 

(1)

 

 

(67)

Changes in exchange rates

 

(57)

 

(76)

 

(1)

 

(35)

 

(1)

 

(170)

Total movements

 

(92)

 

(42)

 

(17)

 

2

 

(1)

 

(150)

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

Cost of acquisition

 

2,214

 

5,963

 

797

 

646

 

60

 

9,680

Accumulated depreciation/impairment

 

(1,149)

 

(4,285)

 

(600)

 

(4)

 

(53)

 

(6,091)

Carrying value at year-end 2013

 

1,065

 

1,678

 

197

 

642

 

7

 

3,589

 

 

 

 

 

 

 

 

 

 

 

 

 

Movements in 2014

 

 

 

 

 

 

 

 

 

 

 

 

Transfer from/(to) assets held for sale

 

16

 

10

 

3

 

 

 

29

Divestments

 

(11)

 

(7)

 

(4)

 

 

 

(22)

Capital expenditures

 

44

 

144

 

40

 

358

 

2

 

588

Transfer between categories

 

54

 

178

 

38

 

(272)

 

2

 

Depreciation

 

(81)

 

(322)

 

(74)

 

 

 

(477)

(Reversal of) impairment

 

7

 

3

 

(2)

 

(7)

 

(1)

 

Changes in exchange rates

 

32

 

44

 

29

 

24

 

(1)

 

128

Total movements

 

61

 

50

 

30

 

103

 

2

 

246

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

Cost of acquisition

 

2,319

 

6,261

 

922

 

813

 

70

 

10,385

Accumulated depreciation/impairment

 

(1,193)

 

(4,533)

 

(695)

 

(68)

 

(61)

 

(6,550)

Carrying value at year-end 2014

 

1,126

 

1,728

 

227

 

745

 

9

 

3,835

Capital expenditures

  • In Decorative Paints, we are investing in high growth markets and in creating efficiency in Europe through optimization of our production footprint
  • In Performance Coatings, we completed the construction of two new production facilities that will increase our production capacity for vehicle refinishes in China and powder coatings in the Middle East
  • In Specialty Chemicals, we have been focusing on the Frankfurt, Germany, project to convert to membrane electrolysis technology, several asset integrity improvement projects and growth projects for specific segments. Overall expenditures were clearly below the 2013 level

Impairments

The 2013 impairment charges of €67 million related to restructuring activities, mainly in Europe. In 2014, a number of small impairments and reversal of prior impairments were recorded, which on balance net out.

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 €40 million (2013: €50 million) of which €39 million is related to buildings and land and €1 million to other equipment.