Annual Report 2013

Notes to the consolidated statement of
financial position

(2) Property, plant and equipment

Cost
in million euros Land, land rights
and buildings
Plant and
machinery
Factory and
office equipment
Assets in the
course of
construction
Total
At January 1, 2012 1,998 2,668 927 227 5,820
Acquisitions 4 4
Divestments
Additions 32 106 66 189 393
Disposals –23 –107 –72 –1 –203
Reclassifications into assets
held for sale
–5 –7 –2 –14
Reclassifications 46 109 35 –197 –7
Translation differences –10 –10 –5 –2 –27
At December 31, 2012 / January 1, 2013 2,038 2,763 949 216 5,966
Acquisitions 10 6 1 17
Divestments –8 –15 –4 –27
Additions 21 86 61 236 404
Disposals –37 –92 –91 –4 –224
Reclassifications into assets held for sale –2 –2
Reclassifications 44 109 30 –188 –5
Translation differences –66 –80 –31 –10 –187
At December 31, 2013 2,000 2,777 914 251 5,942

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Accumulated depreciation/impairment
in million euros Land, land rights
and buildings
Plant and
machinery
Factory and
office equipment
Assets in the
course of construction
Total
At January 1, 2012 913 1,933 710 3,556
Divestments
Write-ups –1 –1
Scheduled depreciation 58 148 86 292
Impairment losses 2 10 12
Disposals –16 –100 –71 –187
Reclassifications into assets
held for sale
–2 –4 –1 –7
Reclassifications
Translation differences –1 –9 –3 –13
At December 31, 2012 / January 1, 2013 954 1,977 721 3,652
Divestments –4 –12 –3 –19
Write-ups
Scheduled depreciation 57 152 82 –291
Impairment losses 3 13 4 20
Disposals –27 –89 –89 –205
Reclassifications into assets held for sale –2 –2
Reclassifications –1
Translation differences –20 –48 –21 –1 –90
At December 31, 2013 961 1,992 695 –1 3,647

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Net book values
in million eurosLand, land rights
and buildings
Plant and
machinery
Factory and
office equipment
Assets in the
course of construction
Total
At December 31, 20131,0397852192522,295
At December 31, 2012 1,084786228216 2,314
 

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Additions are stated at purchase or manufacturing cost. The latter includes direct costs and appropriate proportions of necessary overheads. Interest charges on borrowings are not included, as Henkel does not currently hold any qualifying assets in accordance with IAS 23 “Borrowing Costs.” A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. Cost figures are shown net of investment grants and allowances. Incidental acquisition costs incurred in order to make the asset ready for the intended use are capitalized. An overview of the primary investment projects undertaken during the fiscal year can be found on page 62 in the Group management Report.

At December 31, 2013, property, plant and equipment with a carrying amount of 1 million euros had been pledged as security for existing liabilities. The periods over which the assets are depreciated are based on their estimated useful lives as set out on page 119. Scheduled depreciation and impairmentimpairment
Impairments of assets are recorded when the recoverable amount is lower than the carrying amount at which the asset is recognized in the statement of financial position. The recoverable amount is calculated as the higher of fair value less costs to sell (net realizable value) and value in use.
losses recognized are allocated to the relevant functions in the consolidated statement of income.

Of the impairmentimpairment
Impairments of assets are recorded when the recoverable amount is lower than the carrying amount at which the asset is recognized in the statement of financial position. The recoverable amount is calculated as the higher of fair value less costs to sell (net realizable value) and value in use.
losses amounting to 20 million euros, structure optimization measures attributable to the Laundry & Home Care business unit accounted for 4 million euros. In the Adhesive Technologies business unit, impairmentimpairment
Impairments of assets are recorded when the recoverable amount is lower than the carrying amount at which the asset is recognized in the statement of financial position. The recoverable amount is calculated as the higher of fair value less costs to sell (net realizable value) and value in use.
losses of 11 million euros were recognized as a result of production optimization measures.