Philips 2014 Annual Report Download - page 140

Group nancial statements 12.9 10
140 Annual Report 2014
10 Property, plant and equipment
Philips Group
Property, plant and equipment in millions of EUR
2014
land and buildings
machinery and
installations other equipment
prepayments and
construction in
progress total
Balance as of January 1, 2014:
Cost 1,899 3,948 1,586 259 7,692
Accumulated depreciation (872) (2,885) (1,155) – (4,912)
Book value 1,027 1,063 431 259 2,780
Change in book value:
Capital expenditures 6 86 68 368 528
Assets available for use 79 220 132 (431) –
Acquisitions 7 6 4 2 19
Disposals and sales – (5) (7) – (12)
Depreciation (91) (295) (178) – (564)
Impairments (26) (74) (21) (1) (122)
Transfer to assets classied as held
for sale (190) (451) (10) (37) (688)
Translation dierences 60 57 28 9 154
Total changes (155) (456) 16 (90) (685)
Balance as of December 31, 2014:
Cost 1,803 3,127 1,745 169 6,844
Accumulated depreciation (931) (2,520) (1,298) – (4,749)
Book value 872 607 447 169 2,095
Philips Group
Property, plant and equipment in millions of EUR
2013
land and buildings
machinery and
installations other equipment
prepayments and
construction in
progress total
Balance as of January 1, 2013:
Cost 1,924 4,004 1,658 294 7,880
Accumulated depreciation (835) (2,851) (1,235) – (4,921)
Book value 1,089 1,153 423 294 2,959
Change in book value:
Capital expenditures 8 88 61 461 618
Assets available for use 79 244 160 (483) –
Acquisitions – – – – –
Disposals and sales (1) (14) (7) (4) (26)
Depreciation (87) (321) (163) – (571)
Impairments (15) (26) (22) – (63)
Transfer to assets classied as held
for sale (17) (4) (4) – (25)
Translation dierences (29) (57) (17) (9) (112)
Total changes (62) (90) 8 (35) (179)
Balance as of December 31, 2013:
Cost 1,899 3,948 1,586 259 7,692
Accumulated depreciation (872) (2,885) (1,155) – (4,912)
Book value 1,027 1,063 431 259 2,780
Land with a book value of EUR 89 million at December
31, 2014 (2013: EUR 133 million) is not depreciated.
Impairment charges of EUR 49 million are related to
industrial assets in Lighting in 2014. Transfer to assets
classied as held for sale in 2014 mainly relate to
combined businesses of Lumileds and Automotive.
Property, plant and equipment includes nancial lease
assets with a book value of EUR 192 million at
December 31, 2014 (2013: EUR 187 million).
The expected useful lives of property, plant and
equipment are as follows:
Philips Group
Useful lives of property, plant and equipment in years
Buildings from 5 to 50
Machinery and installations from 3 to 20
Other equipment from 1 to 10