5. Property, Plant and Equipment

Audited information

in CHF m

 

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 ).

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 (see )

 

–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 )

 

 

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

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).

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