Impairments recognized in the income statement amounted to less than CHF 1 million in 2019. No impairment losses were recorded in 2018.

As at 31 December 2019, commitments for the purchase of property, plant and equipment concerned various projects mainly in Romania, Germany and in China and totalled CHF 182 million (2018: CHF 73 million).

In 2019, IFRS 16 Leases became effective and the accounting policy was changed accordingly. The adoption of IFRS 16 affected the net book value of property, plant and equipment by a decrease of CHF 17 million acquired by way of finance lease and by a decrease of CHF 7 million of leasehold land. See also Accounting Policies, section 1.12 and Note 7.

Disposals of 2019 include CHF 48 million of assets (net book value) which are part of the sale of the Healthcare Packaging Business (see note 25).

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 26).

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 sometimes production or adminstrative sites are vacated. 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 600 million on 31 December 2019 (CHF 627 million on 31 December 2018).

Accumulated depreciation on investment property amounted to CHF 438 million on 31 December 2019 (CHF 457 million on 31 December 2018).

The net book value amounted to CHF 162 million on 31 December 2019 (CHF 170 million on 31 December 2018).

Depreciation amounted to CHF 1 million in 2019 (CHF 1 million in 2018).

Income from investment properties amounted to CHF 11 million in 2019 (CHF 11 million in 2018) and is recorded in SG&A in the segment Corporate.

Expected minimum lease income varies between CHF 7 million and CHF 8 million (2018: CHF 8 million and CHF 10 million) per annum for the next five years and amounts to CHF 199 million for later periods (2018: CHF 144 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 December 31 2019, the estimated fair value of investment property amounted to CHF 204 million (CHF 211 million on 31 December 31 2018).