(20) Property, plant, and equipment
Accounting and measurement policies
Recognition and initial measurement
In the course of determining cost, government grants received within the scope of IAS 20 are deducted. Grants receivable for financial support that are no longer linked to future costs are recognized in profit or loss.
Advance payments are disclosed together with the assets under construction.
Subsequent measurement
Subsequent measurement is based on amortized cost.
Property, plant, and equipment is depreciated using the straight-line method over the useful life of the asset concerned, and the corresponding expenses are allocated to the respective functional costs. Depreciation of property, plant, and equipment is based on the following useful lives:
|
|
Useful life |
|---|---|---|
Production buildings |
|
No more than 33 years |
Administration buildings |
|
No more than 40 years |
Plant and machinery |
|
6 to 25 years |
Operating and office equipment, other facilities |
|
3 to 10 years |
The useful lives of the assets are reviewed regularly and adjusted if necessary.
An impairment test is performed if there are indications of impairment. External and internal information is used in this context. In the event of impairment, an impairment loss is recognized under other operating expenses. Impairment losses are reversed up to amortized cost and reported in other operating income if the original reasons for impairment no longer apply.
Significant discretionary decisions and sources of estimation uncertainty
Determination of depreciation
Assumptions and estimates are required in determining the appropriate useful life and the expected residual value in order to calculate the amount of depreciation on property, plant, and equipment. This applies in particular to the determination of the underlying remaining useful life. In making these estimates, the Group considers the useful lives of the property, plant, and equipment derived from past experience.
Identification of a need to recognize impairment loss and reverse impairment loss
Discretionary decisions are required in the identification of objective evidence of impairment as well as in identifying the need to reverse impairment of property, plant, and equipment.
€ million |
|
Land, land rights, and buildings1 |
|
Plant and machinery1 |
|
Other facilities, operating and office equipment |
|
Construction in progress |
|
Total1 |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cost as of Jan. 1, 2022 |
|
5,464 |
|
5,687 |
|
1,754 |
|
1,905 |
|
14,810 |
||||
Additions due to business combinations |
|
48 |
|
19 |
|
4 |
|
11 |
|
82 |
||||
Other Additions |
|
182 |
|
42 |
|
77 |
|
1,429 |
|
1,730 |
||||
Disposals due to divestments/Reclassification to assets held for sale |
|
– |
|
– |
|
– |
|
– |
|
– |
||||
Other Disposals |
|
-88 |
|
-94 |
|
-95 |
|
-6 |
|
-282 |
||||
Transfers |
|
290 |
|
512 |
|
127 |
|
-930 |
|
-1 |
||||
Currency translation difference |
|
80 |
|
63 |
|
12 |
|
20 |
|
175 |
||||
Dec. 31, 2022 |
|
5,976 |
|
6,228 |
|
1,879 |
|
2,429 |
|
16,513 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Accumulated depreciation and impairment losses as of Jan. 1, 2022 |
|
-2,304 |
|
-3,987 |
|
-1,287 |
|
-15 |
|
-7,593 |
||||
Depreciation |
|
-319 |
|
-374 |
|
-173 |
|
– |
|
-866 |
||||
Impairment losses |
|
– |
|
-19 |
|
– |
|
-3 |
|
-21 |
||||
Reversals of impairment losses |
|
– |
|
– |
|
– |
|
– |
|
– |
||||
Disposals due to divestments/Reclassification to assets held for sale |
|
– |
|
– |
|
– |
|
– |
|
– |
||||
Disposals |
|
67 |
|
84 |
|
91 |
|
1 |
|
244 |
||||
Transfers |
|
-6 |
|
11 |
|
-1 |
|
-5 |
|
-1 |
||||
Currency translation difference |
|
-26 |
|
-35 |
|
-10 |
|
– |
|
-70 |
||||
Dec. 31, 2022 |
|
-2,588 |
|
-4,319 |
|
-1,380 |
|
-21 |
|
-8,308 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Net carrying amounts as of Dec. 31, 2022 |
|
3,389 |
|
1,909 |
|
499 |
|
2,408 |
|
8,204 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Cost as of Jan. 1, 2023 |
|
5,976 |
|
6,228 |
|
1,879 |
|
2,429 |
|
16,513 |
||||
Changes in the scope of consolidation |
|
– |
|
– |
|
– |
|
– |
|
– |
||||
Additions |
|
169 |
|
32 |
|
56 |
|
1,723 |
|
1,981 |
||||
Reclassification to assets held for sale |
|
– |
|
– |
|
– |
|
– |
|
– |
||||
Disposals |
|
-85 |
|
-93 |
|
-82 |
|
-18 |
|
-278 |
||||
Transfers |
|
385 |
|
542 |
|
120 |
|
-1,053 |
|
-6 |
||||
Currency translation difference |
|
-119 |
|
-84 |
|
-27 |
|
-37 |
|
-266 |
||||
Dec. 31, 2023 |
|
6,326 |
|
6,625 |
|
1,946 |
|
3,045 |
|
17,943 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Accumulated depreciation and impairment losses as of Jan. 1, 2023 |
|
-2,588 |
|
-4,319 |
|
-1,380 |
|
-21 |
|
-8,308 |
||||
Depreciation |
|
-332 |
|
-389 |
|
-173 |
|
– |
|
-895 |
||||
Impairment losses |
|
-1 |
|
-8 |
|
-2 |
|
-12 |
|
-23 |
||||
Reversals of impairment losses |
|
– |
|
1 |
|
– |
|
– |
|
1 |
||||
Disposals due to divestments/Reclassification to assets held for sale |
|
– |
|
– |
|
– |
|
– |
|
– |
||||
Disposals |
|
67 |
|
88 |
|
77 |
|
– |
|
233 |
||||
Transfers |
|
-9 |
|
1 |
|
5 |
|
3 |
|
1 |
||||
Currency translation difference |
|
43 |
|
43 |
|
19 |
|
1 |
|
106 |
||||
Dec. 31, 2023 |
|
-2,820 |
|
-4,584 |
|
-1,454 |
|
-29 |
|
-8,887 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Net carrying amounts as of Dec. 31, 2023 |
|
3,506 |
|
2,042 |
|
492 |
|
3,016 |
|
9,056 |
||||
|
||||||||||||||
The individual additions to construction in progress in fiscal 2023 with an investment volume of more than € 50 million each are presented below:
Business sector |
|
Investment project |
|
Country |
|---|---|---|---|---|
Life Science |
|
Filtration plant |
|
Ireland |
Life Science |
|
Capacity expansion for drug safety testing |
|
USA |
Life Science |
|
Membrane factory |
|
Ireland |
Healthcare |
|
Research center |
|
Germany |
Life Science |
|
Filling and logistics center |
|
Germany |