Chapters
Annual Report 2018

11. Property, Plant and Equipment

Accounting Policy
Property, plant and equipment is stated at historical cost less depreciation. Depreciation is calculated using the straight-line method to write off the cost of each asset to its residual value over its estimated useful life.

The useful lives used are:

Buildings

8 - 30 years

Leasehold and building improvements

3 - 10 years

Machinery

3 -10 years

Furniture and fixtures

3 - 10 years

Computer and telecom equipment

3 - 5 years

Other equipment

3 - 7 years

Vehicles

5 years

The useful lives and the residual values of the assets are subject to an annual review.

Where the carrying amount of an asset is higher than its estimated recoverable amount, it is written down immediately to its recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount and are included in the operating result under the relevant heading. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the consolidated Income Statement during the financial period in which they are incurred.

Property, plant and equipment acquired via a financial lease is carried at the lower of fair value and the present value of the minimum required lease payments at the start of the lease, less cumulative depreciation and impairment. Lease payments on finance leases are recognized in accordance with note 23. The property, plant and equipment acquired under finance leases is depreciated over the shorter of the useful life of the asset and the lease term.

Movements in property, plant and equipment are as follows:

in thousands of EUR

Notes

Buildings and leasehold improvements

Machinery and equipment

Furniture and vehicles

Total

At 1 January 2017

Cost

516,478

491,483

385,332

1,393,293

Accumulated depreciation and impairment

-298,948

-373,266

-277,259

-949,473

Carrying amount

217,530

118,217

108,073

443,820

Movements in 2017

Acquisitions

15,353

8,412

1,054

24,819

Additions

75,872

47,281

32,072

155,225

Disposals / retirements

- 2,792

- 1,327

- 1,378

- 5,497

Depreciation charge

7

- 47,379

- 37,311

- 31,897

- 116,587

Impairment

7

- 468

-

-

- 468

Reclassification

- 1,052

- 2,178

3,147

- 83

Exchange differences

- 6,657

- 3,775

- 2,218

- 12,650

At 31 December 2017

250,407

129,319

108,853

488,579

At 1 January 2018

Cost

586,736

501,447

397,930

1,486,113

Accumulated depreciation and impairment

-336,329

-372,128

-289,077

-997,534

Carrying amount

250,407

129,319

108,853

488,579

Movements in 2018

Acquisitions

4

877

445

726

2,048

Additions

64,258

65,350

32,296

161,904

Disposals / retirements

- 4,782

- 1,861

- 1,616

- 8,259

Depreciation charge

7

- 51,923

- 39,820

- 31,432

- 123,175

Impairment

7

- 302

- 81

- 637

- 1,020

Reclassification

- 2,421

- 269

2,447

- 243

Exchange differences

- 977

- 656

- 1,419

- 3,052

At 31 December 2018

255,137

152,427

109,218

516,782

Cost

616,647

547,877

392,398

1,556,922

Accumulated depreciation and impairment

- 361,510

- 395,450

- 283,180

- 1,040,140

Carrying amount

255,137

152,427

109,218

516,782

Leased assets where the Group is a lessee under a financial lease, are included under machinery and equipment and furniture and vehicles. The carrying amount of leased assets is €914 (2017: 1,133).

The impairment loss in 2018 represents the write-down of certain leasehold improvements and furniture and fittings in the Other Europe and Americas & Asia segments (2017: certain leasehold improvements in the Americas & Asia segment). This was recognized in the consolidated Income Statement within general and administrative costs.