Impairments recognized in the income statement amounted to CHF 11 million in 2020 (2019: less than CHF 1 million). Impairments recognized in 2020 arose as a result of restructuring measures entailing site closures and of disposal projects.

Exchange rate differences mainly arise from the changes in the USD/Swiss franc and Brasilian real/Swiss franc exchange rates. Both currencies significantly devalued against the Swiss franc in 2020.

As at 31 December 2020, commitments for the purchase of property plant and equipment concerned various projects mainly in Germany and China and totalled CHF 61 million (2019: CHF 182 million).

As per 31 December 2020, property, plant and equipment acquired by way of Business Acquisition, with costs of CHF 3 million were recorded. See also Note 27.

Additions in 2020 includes CHF 83 million of investments in a cellulosic ethanol plant in Romania.

Disposals of 2020 include CHF 16 million of assets (net book value) in Germany.

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).

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.

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 value 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 524 million on 31 December 2020 (CHF 600 million on 31 December 2019).

Accumulated depreciation on investment property amounted to CHF 382 million on 31 December 2020 (CHF 438 million on 31 December 2019).

The net book value amounted to CHF 142 million on 31 December 2020 (CHF 162 million on 31 December 2019).

Depreciation amounted to CHF 1 million in 2020 (CHF 1 million in 2019).

Income from investment properties amounted to CHF 6 million in 2020 (CHF 11 million in 2019) and is recorded in SG&A in the segment Corporate.

Expected minimum lease income varies between CHF 5 million and CHF 6 million (2019: CHF 7 million and CHF 8 million) per annum for the next five years and amounts to CHF 193 million for later periods (2019: CHF 199 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 2020, the estimated fair value of investment property amounted to CHF 186 million (CHF 204 million on 31 December 2019).