13 Property, plant and equipment

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CHANGES IN PROPERTY, PLANT AND EQUIPMENT IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2018

€ million

 

Land, land rights and buildings, including buildings on third-party land

 

Technical equipment and machinery

 

Other equipment, operating and office equipment

 

Payments on account and assets under construction

 

Total

 

 

 

 

 

 

 

 

 

 

 

Cost Balance at Jan. 1, 2018

 

34,335

 

45,450

 

68,909

 

6,876

 

155,569

Foreign exchange differences

 

−98

 

−216

 

−79

 

−59

 

−452

Changes in consolidated Group

 

168

 

9

 

6

 

6

 

189

Additions

 

597

 

1,103

 

4,960

 

6,452

 

13,112

Transfers

 

858

 

1,753

 

2,048

 

−4,703

 

−43

Disposals

 

117

 

1,424

 

1,495

 

35

 

3,071

Balance at Dec. 31, 2018

 

35,743

 

46,676

 

74,350

 

8,537

 

165,305

Depreciation and impairment Balance at Jan. 1, 2018

 

14,621

 

32,286

 

53,352

 

69

 

100,327

Foreign exchange differences

 

−39

 

−130

 

−59

 

−5

 

−232

Changes in consolidated Group

 

10

 

7

 

1

 

 

18

Additions to cumulative depreciation

 

1,062

 

3,222

 

5,593

 

 

9,876

Additions to cumulative impairment losses

 

22

 

21

 

273

 

258

 

574

Transfers

 

−5

 

47

 

−25

 

−18

 

−1

Disposals

 

83

 

1,370

 

1,318

 

0

 

2,770

Reversal of impairment losses

 

36

 

26

 

14

 

41

 

117

Balance at Dec. 31, 2018

 

15,552

 

34,057

 

57,803

 

263

 

107,675

Carrying amount at Dec. 31, 2018

 

20,191

 

12,618

 

16,546

 

8,274

 

57,630

of which assets leased under finance leases Carrying amount at Dec. 31, 2018

 

267

 

5

 

41

 

0

 

314

Future finance lease payments due, and their present values, are shown in the following table:

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€ million

 

2019

 

2020 – 2023

 

from 2024

 

Total

 

 

 

 

 

 

 

 

 

Finance lease payments

 

68

 

231

 

360

 

659

Interest component of finance lease payments

 

18

 

73

 

119

 

210

Carrying amount of liabilities

 

51

 

158

 

241

 

449

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CHANGES IN PROPERTY, PLANT AND EQUIPMENT IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2019

€ million

 

Land, land rights and buildings, including buildings on third-party land

 

Technical equipment and machinery

 

Other equipment, operating and office equipment

 

Payments on account and assets under construction

 

Total

1

Value in the opening balance adjusted (see disclosures on IFRS 16).

 

 

 

 

 

 

 

 

 

 

 

Cost Balance at Jan. 1, 2019¹

 

39,976

 

46,684

 

74,702

 

8,536

 

169,898

Foreign exchange differences

 

198

 

181

 

303

 

36

 

718

Changes in consolidated Group

 

56

 

16

 

28

 

8

 

108

Additions

 

1,862

 

1,716

 

5,403

 

6,104

 

15,084

Transfers

 

1,867

 

2,776

 

2,946

 

−7,109

 

481

Classified as held for sale

 

124

 

206

 

54

 

21

 

406

Disposals

 

303

 

1,077

 

1,331

 

29

 

2,740

Balance at Dec. 31, 2019

 

43,531

 

50,090

 

81,997

 

7,526

 

183,143

Depreciation and impairment Balance at Jan. 1, 2019¹

 

15,418

 

34,052

 

57,821

 

263

 

107,554

Foreign exchange differences

 

48

 

131

 

218

 

6

 

402

Changes in consolidated Group

 

0

 

3

 

15

 

0

 

18

Additions to cumulative depreciation

 

1,927

 

3,407

 

6,237

 

 

11,572

Additions to cumulative impairment losses

 

53

 

2

 

63

 

142

 

260

Transfers

 

151

 

20

 

38

 

−59

 

149

Classified as held for sale

 

26

 

88

 

30

 

 

145

Disposals

 

149

 

1,014

 

1,169

 

 

2,332

Reversal of impairment losses

 

32

 

14

 

331

 

109

 

487

Balance at Dec. 31, 2019

 

17,389

 

36,498

 

62,862

 

242

 

116,991

Carrying amount at Dec. 31, 2019

 

26,142

 

13,592

 

19,135

 

7,284

 

66,152

In the previous year, payments for assets leased under operating leases recognized in the income statement amounted to €1,690 million. With respect to internally used assets, € 1,544 million of this figure was attributable to minimum lease payments and €13 million to contingent lease payments in the previous year. The payments of €133 million under subleases primarily related to minimum lease payments in the previous year.

Government grants of €146 million (previous year: €207 million) were deducted from the cost of property, plant and equipment and as in the previous year noncash benefits received amounting to €0.4 million were not capitalized as the cost of assets.

In connection with land and buildings, real property liens of €1,221 million (previous year: €1,062 million) are pledged as collateral for partial retirement obligations, financial liabilities and other liabilities.