5. Property, Plant and Equipment
Audited information- Index
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- 11
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- 36
Land |
Buildings |
Machinery and equipment |
Furniture, vehicles, computer hardware |
Assets under construction |
Total 2018 |
|||||||
Cost |
|
|
|
|
|
|
||||||
As per 1 January |
421 |
1 945 |
3 121 |
429 |
234 |
6 150 |
||||||
Additions |
2 |
15 |
54 |
21 |
145 |
237 |
||||||
Disposals |
–4 |
–446 |
–254 |
–38 |
–8 |
–750 |
||||||
Reclassifications |
1 |
42 |
102 |
12 |
–157 |
— |
||||||
Exchange rate differences |
–15 |
–63 |
–99 |
–14 |
–7 |
–198 |
||||||
At 31 December |
405 |
1 493 |
2 924 |
410 |
207 |
5 439 |
||||||
Accumulated depreciation and impairment |
|
|
|
|
|
|
||||||
As per 1 January |
–116 |
–1 256 |
–2 207 |
–321 |
— |
–3 900 |
||||||
Disposals |
1 |
404 |
219 |
32 |
— |
656 |
||||||
Depreciation |
— |
–51 |
–157 |
–37 |
— |
–245 |
||||||
Exchange rate differences |
4 |
40 |
75 |
12 |
— |
131 |
||||||
At 31 December |
–111 |
–863 |
–2 070 |
–314 |
— |
–3 358 |
||||||
|
|
|
|
|
|
|
||||||
Net book value |
294 |
630 |
854 |
96 |
207 |
2 081 |
No impairment losses were recorded in 2018. Impairments recognized in 2017 arose as a result of restructuring measures entailing site closures.
As at 31 December 2018, commitments for the purchase of property, plant and equipment concerned various projects mainly in Germany, the Unites States and in China and totalled CHF 73 million (2017: CHF 50 million).
As per 31 December 2018, property, plant and equipment acquired by way of finance lease, with costs of CHF 27 million (2017: CHF 30 million) and a net book value of CHF 15 million (2017: CHF 17 million) were recorded.
Disposals of 2018 include CHF 85 million of the assets (net book value) which are part of the sale of Infrapark Baselland AG (see note 24).
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 (see note 24) |
–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 (see note 24) |
— |
2 |
2 |
— |
— |
4 |
||||||
Disposals |
— |
6 |
19 |
9 |
— |
34 |
||||||
Depreciation |
— |
–51 |
–145 |
–35 |
— |
–231 |
||||||
Impairment (see note 26) |
— |
–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 |
Investment properties (Clariant as a lessor in operating leases)
As a result of the continuous 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 IAS 40, 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 627 million on 31 December 2018 (CHF 721 million on 31 December 2017).
Accumulated depreciation on investment property amounted to CHF 457 million on 31 December 2018 (CHF 541 million on 31 December 2017).
The net book value amounted to CHF 170 million on 31 December 2018 (CHF 180 million on 31 December 2017).
Depreciation amounted to CHF 1 million in 2018 (CHF 2 million in 2017).
Income from investment properties amounted to CHF 11 million in 2018 (CHF 16 million in 2017) and is recorded in SG&A in the segment Corporate.
Expected minimum lease income varies between CHF 8 million and CHF 10 million (2017: CHF 7 million and CHF 13 million) per annum for the next five years and amounts to CHF 144 million for later periods (2017: CHF 105 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, if 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 2018, the estimated fair value of investment property amounted to CHF 211 million (CHF 223 million on 31 December 2017).