21 Property, plant and equipment

2018

 

 

 

 

 

€ million

Land and buildings

Plant and machinery

Office, computer equipment, vehicles and other

Assets under construction

Total

Gross carrying amount at 1 January

475

768

117

134

1 494

Additions

97

38

49

80

264

Disposals

-2

-9

-3

-1

-15

Transfers from one heading to another

4

73

5

-105

-23

Effect of movements in exchange rates

8

15

2

1

26

Gross carrying amount at 31 December

582

885

170

109

1 746

Accumulated depreciation at 1 January

-250

-464

-105

-2

-821

Depreciation charge for the year

-40

-54

-23

0

-117

Disposals

2

8

2

0

12

Transfers from one heading to another

-2

0

0

0

-2

Effect of movements in exchange rates

-4

-8

-1

0

-13

Accumulated depreciation at 31 December

-294

-518

-127

-2

-941

Net carrying amount at 31 December

288

367

43

107

805

 

 

 

 

 

 

2017

 

 

 

 

 

€ million

Land and buildings

Plant and machinery

Office, computer equipment, vehicles and other

Assets under construction

Total

Gross carrying amount at 1 January

542

784

112

85

1 523

Additions

3

16

4

105

128

Business combinations

0

2

0

0

2

Disposals

9

-16

3

-1

-5

Transfers from one heading to another

-21

19

4

-50

-48

Transfer to assets held for sale

-31

-1

-1

0

-33

Effect of movements in exchange rates

-27

-36

-5

-5

-73

Gross carrying amount at 31 December

475

768

117

134

1 494

Accumulated depreciation at 1 January

-288

-457

-98

-2

-845

Depreciation charge for the year

-20

-46

-8

0

-74

Disposals

-9

15

-2

0

4

Transfers from one heading to another

23

1

0

0

24

Transfer to assets held for sale

31

1

1

0

33

Effect of movements in exchange rates

13

22

2

0

37

Accumulated depreciation at 31 December

-250

-464

-105

-2

-821

Net carrying amount at 31 December

225

304

12

132

674

 

 

 

 

 

 

None of the Group property, plant and equipment is subject to restrictions on title nor has it been pledged as security for liabilities.

During 2018, the Group acquired property, plant and equipment totaling € 264 million (2017: € 128 million). These additions include right-of-use assets due to the implementation of IFRS 16 for an amount of € 140 million. Other additions mainly relate to the upgrade of the biological plant in Bulle (Switzerland), the new biological production unit and the revamping of a plant on the UCB Braine site (Belgium), a new packaging line for Keppra in Zhuhai plant (China), IT hardware and other plant and equipment.

During the year, the Group did not recognize any impairment expenses (2017: impairment of € 0 million).

The depreciation charge for the year amounts to € 117 million (2017: € 74 million) and includes the depreciation on the right-of-use assets (€ 38 million).

Capitalized borrowing costs

No borrowing costs were capitalized during 2018 (2017: € 0 million).