5. Property, Plant and Equipment

Audited information

(XLS:) Download

in CHF m

  

Land

  

Buildings

  

Machinery and equipment

  

Furniture, vehicles, computer hardware

  

Assets under construction

  

Total 2017

Cost

  

 

  

 

  

 

  

 

  

 

  

 

As per 1 January

  

404

  

1 785

  

2 746

  

396

  

427

  

5 758

Additions

  

1

  

17

  

59

  

25

  

146

  

248

Acquired in business combinations

  

—

  

3

  

6

  

–5

  

5

  

9

Reclassified to held for sale

  

–8

  

–8

  

–3

  

—

  

—

  

–19

Disposals

  

–1

  

–7

  

–20

  

–12

  

—

  

–40

Reclassifications

  

3

  

104

  

215

  

11

  

–333

  

—

Exchange rate differences

  

22

  

51

  

118

  

14

  

–11

  

194

At 31 December

  

421

  

1 945

  

3 121

  

429

  

234

  

6 150

Accumulated depreciation and impairment

  

 

  

 

  

 

  

 

  

 

  

 

As per 1 January

  

–105

  

–1 180

  

–1 988

  

–280

  

—

  

–3 553

Reclassified to held for sale

  

—

  

2

  

2

  

—

  

—

  

4

Disposals

  

—

  

6

  

19

  

9

  

—

  

34

Depreciation

  

—

  

–51

  

–145

  

–35

  

—

  

–231

Impairment (see )

  

—

  

–1

  

–2

  

–2

  

—

  

–5

Exchange rate differences

  

–11

  

–32

  

–93

  

–13

  

—

  

–149

At 31 December

  

–116

  

–1 256

  

–2 207

  

–321

  

—

  

–3 900

 

  

 

  

 

  

 

  

 

  

 

  

 

Net book value

  

305

  

689

  

914

  

108

  

234

  

2 250

(XLS:) Download

in CHF m

  

Land

  

Buildings

  

Machinery and equipment

  

Furniture, vehicles, computer hardware

  

Assets under construction

  

Total 2016

Cost

  

 

  

 

  

 

  

 

  

 

  

 

As per 1 January

  

408

  

1 722

  

2 673

  

340

  

427

  

5 570

Additions

  

—

  

11

  

56

  

15

  

215

  

297

Acquired in business combinations

  

4

  

17

  

20

  

28

  

1

  

70

Reclassified to held for sale

  

–6

  

—

  

—

  

—

  

—

  

–6

Disposals

  

–13

  

–17

  

–27

  

–22

  

—

  

–79

Reclassifications

  

11

  

54

  

114

  

42

  

–221

  

—

Exchange rate differences

  

—

  

–2

  

–90

  

–7

  

5

  

–94

At 31 December

  

404

  

1 785

  

2 746

  

396

  

427

  

5 758

Accumulated depreciation and impairment

  

 

  

 

  

 

  

 

  

 

  

 

As per 1 January

  

–108

  

–1 142

  

–1 975

  

–262

  

—

  

–3 487

Reclassified to held for sale

  

1

  

—

  

—

  

—

  

—

  

1

Disposals

  

1

  

7

  

26

  

21

  

—

  

55

Depreciation

  

—

  

–47

  

–133

  

–30

  

—

  

–210

Impairment (see )

  

—

  

–3

  

–6

  

—

  

—

  

–9

Reclassifications

  

—

  

1

  

16

  

–17

  

—

  

—

Exchange rate differences

  

1

  

4

  

84

  

8

  

—

  

97

At 31 December

  

–105

  

–1 180

  

–1 988

  

–280

  

—

  

–3 553

 

  

 

  

 

  

 

  

 

  

 

  

 

Net book value

  

299

  

605

  

758

  

116

  

427

  

2 205

Impairments recognized in 2017 and 2016 arose as a result of restructuring measures entailing site closures.

In 2016 Clariant sold office buildings in Germany and in China realizing a gain of CHF 23 million.

As at 31 December 2017, commitments for the purchase of property, plant and equipment concerned various projects mainly in Germany, the Unites States, and in China and totalled CHF 50 million (2016: CHF 49 million).

As per 31 December 2017, property, plant and equipment acquired by way of finance lease, with costs of CHF 30 million (2016: CHF 18 million) and a net book value of CHF 17 million (2016: CHF 9 million) were recorded.

Investment properties (Clariant as a lessor in operating leases)

As a result of the continous efforts to increase efficiency and to optimize the structure of its facilities Clariant sometimes vacates certain production or adminstrative sites. In order to minimize expenses Clariant seeks to find tenants for these facilities.

As a consequence such facilities, which generate income exclusively from rental contracts, are considered as investment property in line with the requirements of IAS40, Investment Property.

All investment property is valued at cost less depreciation.

Investment property in Clariant is almost entirely located in Switzerland and Germany. The gross book value of investment property amounted to CHF 721 million on 31 December 2017 (CHF 651 million on 31 December 2016).

Accumulated depreciation on investment property amounted to CHF 541 million on 31 December 2017 (CHF 484 million on 31 December 2016).

The net book value amounted to CHF 180 million on 31 December 2017 (CHF 167 million on 31 December 2016).

Depreciation amounted to CHF 2 million in 2017 (CHF 2 million in 2016).

Income from investment properties amounted to CHF 16 million in 2017 (CHF 15 million in 2016) and is recorded in SG&A in the segment Corporate.

Expected minimum lease income varies between CHF 7 million and CHF 13 million (2016: CHF 8 million and CHF 13 million) per annum for the next five years and amounts to CHF 105 million for later periods (2016: CHF 107 million).

Since all investment property consists of industrial and administrative sites which have been in use for several decades there is no active market which would give information on possible market prices, is such sites were to be sold to a third party. The fair values of the investment properties were therefore determined by way of external appraisals and value-in-use calculations. As of 31 December 2017 the estimated fair value of investment property amounted to CHF 223 million (CHF 189 million on 31 December 2016).

FURTHER READING