05 Intangible Assets and Property, Plant and Equipment

(XLS:) Download XLS


€ million	Intangible assets	Land, buildings and similar rights	Technical equipment and machinery*	Other equipment, factory and office equipment	Assets under construction	Property, plant and equipment	*Of which assets from finance leases

2018
Balance as of Jan. 1, 2018	152.8	1,448.2	7,681.5	578.2	240.7	9,948.6	98.6
Additions	2.2	18.9	103.9	32.8	303.0	458.6	–
Disposals	-3.1	-2.7	-53.3	-15.1	–	-71.1	–
Transfers	0.8	22.8	91.5	6.5	-121.7	-0.9	–
Changes in scope of consolidation	10.0	6.8	46.8	1.0	–	54.6	–
Exchange-rate differences	1.6	23.4	92.5	1.8	2.3	120.0	0.7
Gross carrying amount as of Dec. 31, 2018	164.3	1,517.4	7,962.9	605.2	424.3	10,509.8	99.3
Cumulative depreciation and impairments	-126.0	-750.0	-5,734.8	-499.6	0.1	-6,984.3	-76.9
Changes in the scope of consolidation	-1.2	-2.2	-32.7	-0.8	–	-35.7	–
Carrying amount as of Dec. 31, 2018	38.3	767.4	2,228.1	105.6	424.4	3,525.5	22.4
Depreciation	-13.4	-58.5	-434.9	-33.6	–	-527.0	-4.9

2017
Balance as of Jan. 1, 2017	205.3	2,265.7	10,336.5	691.5	174.0	13,467.7	101.2
Additions	10.6	11.5	91.9	25.3	206.9	335.6	–
Disposals	-1.4	-2.1	-40.4	-22.8	-0.1	-65.4	–
Transfers	1.6	5.5	58.3	20.5	-85.9	-1.6	0.3
Changes in scope of consolidation	-58.2	-753.9	-2,463.7	-130.6	-44.4	-3,392.6	–
Exchange-rate differences	-5.1	-78.5	-301.1	-5.7	-9.8	-395.1	-2.9
Gross carrying amount as of Dec. 31, 2017	152.8	1,448.2	7,681.5	578.2	240.7	9,948.6	98.6
Cumulative depreciation and impairments	-111.3	-685.4	-5,284.2	-478.6	–	-6,448.2	-71.8
Changes in the scope of consolidation	53.0	532.5	2,224.4	122.3	0.1	2,879.3	–
Carrying amount as of Dec. 31, 2017	41.5	762.8	2,397.3	99.6	240.7	3,500.4	26.8
Depreciation	-13.1	-66.3	-506.3	-34.0	–	-606.6	-6.2

Intangible assets include industrial property rights, similar rights, software and other assets acquired against payment. Acquisitions result in technologies, customer bases and order backlogs acquired against payment, which are amortized over a period of 3 to 9 years.

The acquisition costs of property, plant and equipment were reduced by investment grants totaling €315.8 million (compared with €313.7 million in the previous year).

In the reporting year, borrowing costs of €2.2 million (€1.3 million in the prior year) were capitalized as part of the acquisition costs of qualifying assets. The average financing cost rate was 2.0 percent (2.7 percent a year earlier). Property, plant and equipment also includes technical machinery and other equipment in the amount of €22.4 million (€26.8 million in the prior year) that underlie an embedded finance lease. Due to the structure of the underlying contracts, economic ownership is attributable to WACKER.