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

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2014

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1,065

 

1,678

 

197

 

642

 

7

 

3,589

 

 

 

 

 

 

 

 

 

 

 

 

 

Movements in 2014

 

 

 

 

 

 

 

 

 

 

 

 

Transfer from 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)

Impairments

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

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/impairment

 

(1,257)

 

(4,851)

 

(757)

 

(74)

 

(59)

 

(6,998)

Carrying value at year-end 2015

 

1,146

 

1,819

 

242

 

789

 

7

 

4,003

Capital expenditures

  • In Decorative Paints, we invested in growth markets and in creating efficiency in Europe through optimization of our production footprint
  • In Performance Coatings, we invested in both RD&I facilities and production facilities in mature and growth markets, to increase capacity and to improve efficiency
  • In Specialty Chemicals, several asset integrity and efficiency improvement projects as well as growth projects for specific segments were executed

Impairments

In 2015 some 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 €39 million (2014: €40 million) of which €38 million is related to buildings and land and €1 million to other equipment.