11 » Property, Plant and Equipment
The following table presents a reconciliation of the carrying amount of property, plant and equipment:
|
|
Land and buildings |
|
Technical equipment and machinery |
|
Other equipment, furniture and fixtures |
|
Construction in progress |
|
Property, plant and equipment |
|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
Acquisition cost |
|
|
|
|
|
|
|
|
|
|
January 1, 2018 |
|
1,242 |
|
288 |
|
1,721 |
|
378 |
|
3,629 |
Additions |
|
137 |
|
22 |
|
240 |
|
299 |
|
699 |
Disposals |
|
(36) |
|
(7) |
|
(203) |
|
(2) |
|
(248) |
Transfers |
|
62 |
|
57 |
|
70 |
|
(198) |
|
(9) |
Currency translation differences |
|
3 |
|
(3) |
|
(11) |
|
2 |
|
(9) |
December 31, 2018 |
|
1,408 |
|
357 |
|
1,817 |
|
480 |
|
4,061 |
Transfer to right-of-use assets due to first-time application of IFRS 16 |
|
(84) |
|
– |
|
(9) |
|
– |
|
(93) |
January 1, 2019 |
|
1,324 |
|
357 |
|
1,808 |
|
480 |
|
3,969 |
Additions |
|
144 |
|
31 |
|
303 |
|
121 |
|
599 |
Disposals |
|
(42) |
|
(9) |
|
(219) |
|
(3) |
|
(272) |
Transfers |
|
347 |
|
43 |
|
(15) |
|
(380) |
|
(6) |
Increase in companies consolidated |
|
40 |
|
1 |
|
0 |
|
– |
|
41 |
Decrease in companies consolidated |
|
– |
|
– |
|
(2) |
|
– |
|
(2) |
Currency translation differences |
|
28 |
|
9 |
|
35 |
|
4 |
|
76 |
December 31, 2019 |
|
1,842 |
|
432 |
|
1,910 |
|
221 |
|
4,405 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment |
|
|
|
|
|
|
|
|
|
|
January 1, 2018 |
|
362 |
|
154 |
|
1,112 |
|
– |
|
1,628 |
Depreciation |
|
71 |
|
32 |
|
306 |
|
– |
|
409 |
Impairment losses |
|
3 |
|
1 |
|
15 |
|
– |
|
19 |
Reversals of impairment losses |
|
(0) |
|
– |
|
(3) |
|
– |
|
(3) |
Disposals |
|
(30) |
|
(6) |
|
(191) |
|
– |
|
(227) |
Transfers |
|
4 |
|
– |
|
(4) |
|
– |
|
0 |
Currency translation differences |
|
4 |
|
(1) |
|
(5) |
|
– |
|
(3) |
December 31, 2018 |
|
414 |
|
180 |
|
1,230 |
|
– |
|
1,824 |
Transfer to right-of-use assets due to first-time application of IFRS 16 |
|
(1) |
|
– |
|
(9) |
|
– |
|
(10) |
January 1, 2019 |
|
412 |
|
180 |
|
1,221 |
|
– |
|
1,814 |
Depreciation |
|
105 |
|
39 |
|
288 |
|
– |
|
432 |
Impairment losses |
|
3 |
|
1 |
|
0 |
|
– |
|
5 |
Reversals of impairment losses |
|
(2) |
|
– |
|
(7) |
|
– |
|
(8) |
Disposals |
|
(36) |
|
(9) |
|
(207) |
|
– |
|
(252) |
Transfers |
|
31 |
|
(5) |
|
(28) |
|
– |
|
(3) |
Decrease in companies consolidated |
|
– |
|
– |
|
(2) |
|
– |
|
(2) |
Currency translation differences |
|
6 |
|
7 |
|
25 |
|
– |
|
39 |
December 31, 2019 |
|
520 |
|
214 |
|
1,291 |
|
– |
|
2,025 |
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount |
|
|
|
|
|
|
|
|
|
|
January 1, 2018 |
|
880 |
|
134 |
|
609 |
|
378 |
|
2,000 |
December 31, 2018 |
|
994 |
|
177 |
|
587 |
|
480 |
|
2,237 |
January 1, 2019 |
|
912 |
|
177 |
|
587 |
|
480 |
|
2,155 |
December 31, 2019 |
|
1,322 |
|
219 |
|
618 |
|
221 |
|
2,380 |
As a general principle, it is regularly assessed whether there are any indications that property, plant and equipment might be impaired. Irrespective of the existence of such indications, furniture and fixtures in own-retail stores are tested annually for impairment whereby the recoverable amount is calculated using the ‘discounted cash flow method’ as part of determining the profitability of the respective own-retail stores.
Impairment losses recognized in the presented periods mainly relate to the company’s own-retail activities, for which contrary to expectations there will be an insufficient flow of future economic benefits.
Further information on total depreciation and amortization expenses, impairment losses and reversals of impairment losses is provided in these Notes. NOTE 33
The decrease in the line item ‘Construction in progress’ mainly relates to the finalized investments in the company’s headquarters in Herzogenaurach.
Additionally, borrowing costs in an amount of € 1 million (2018: € 3 million) related to the construction of qualifying assets at adidas AG were capitalized using a capitalization rate of 1.3 % (2018: 1.3%).