Volkswagen Group - Annual Report 2009 - Property, plant and equipment

CHANGES IN PROPERTY, PLANT AND EQUIPMENT BETWEEN JANUARY 1 AND DECEMBER 31, 2008
€ million	Land, land rights and buildings, including buildings on third-party land	Technical equipment and machinery	Other equipment, operating and office equipment	Payments on account and assets under construction	Total
Cost Balance at Jan. 1, 2008	14,424	25,048	32,620	1,836	73,928
Foreign exchange differences	–174	–495	–308	–117	–1,094
Changes in consolidated Group	1,389	959	110	294	2,752
Additions	437	1,118	2,420	2,676	6,651
Transfers	216	700	629	–1,523	22
Held for sale	44	30	111	6	191
Disposals	71	747	1,433	71	2,322
Balance at Dec. 31, 2008	16,177	26,553	33,927	3,089	79,746
Depreciation and impairment Balance at Jan. 1, 2008	7,545	19,740	27,297	8	54,590
Foreign exchange differences	–33	–238	–239	–8	–518
Changes in consolidated Group	0	0	0	–	0
Additions to cumulative depreciation	487	1,705	2,415	18	4,625
Additions to cumulative impairment losses	3	7	84	90	184
Transfers	3	–4	–9	11	1
Held for sale	25	25	72	2	124
Disposals	57	712	1,356	–	2,125
Reversal of impairment losses	–	0	–	–8	–8
Balance at Dec. 31, 2008	7,923	20,473	28,120	109	56,625
Carrying amount at Dec. 31, 2008	8,254	6,080	5,807	2,980	23,121
of which assets leased under finance lease contracts Carrying amount at Dec. 31, 2008	177	–	16	–	193

Call options on buildings and plant leased under the terms of finance leases exist in most cases, and are normally exercised. Interest rates on the leases vary between 2.9% and 13.6%, depending on the market and the date of inception of the lease.

Future finance lease payments due, and their present values, are shown in the following table:

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€ million	2009	2010 – 2013	from 2014	Total
Finance lease payments	39	77	124	240
Interest component of finance lease payments	7	10	15	32
Carrying amount/ present value	32	67	109	208

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CHANGES IN PROPERTY, PLANT AND EQUIPMENT BETWEEN JANUARY 1 AND DECEMBER 31, 2009
€ million	Land, land rights and buildings, including buildings on third-party land	Technical equipment and machinery	Other equipment, operating and office equipment	Payments on account and assets under construction	Total
Cost Balance at Jan. 1, 2009	16,177	26,553	33,927	3,089	79,746
Foreign exchange differences	179	429	360	56	1,024
Changes in consolidated Group	95	0	1	5	100
Additions	378	1,254	1,795	2,251	5,678
Transfers	546	982	801	–2,316	13
Held for sale	–	–	–	–	–
Disposals	60	531	717	54	1,362
Balance at Dec. 31, 2009	17,314	28,686	36,166	3,032	85,199
Depreciation and impairment Balance at Jan. 1, 2009	7,923	20,473	28,120	109	56,625
Foreign exchange differences	61	267	292	4	624
Changes in consolidated Group	4	0	0	–	4
Additions to cumulative depreciation	519	1,734	2,297	24	4,574
Additions to cumulative impairment losses	0	2	136	2	140
Transfers	0	36	54	–84	7
Held for sale	–	–	–	–	–
Disposals	51	492	656	0	1,198
Reversal of impairment losses	–2	–2	–6	–11	–20
Balance at Dec. 31, 2009	8,454	22,018	30,237	45	60,755
Carrying amount at Dec. 31, 2009	8,860	6,668	5,930	2,987	24,444
of which assets leased under finance lease contracts Carrying amount at Dec. 31, 2009	166	17	12	–	195

Call options on buildings and plant leased under the terms of finance leases exist in most cases, and are normally exercised. Interest rates on the leases vary between 2.0% and 10.1%, depending on the market and the date of inception of the lease.

Future finance lease payments due, and their present values, are shown in the following table:

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€ million	2010	2011 – 2014	from 2015	Total
Finance lease payments	30	107	94	230
Interest component of finance lease payments	7	16	2	25
Carrying amount/ present value	23	91	92	206

For assets leased under operating leases, payments recognized in the income statement amounted to €545 million in the reporting period (previous year: €366 million).

Government grants of €25 million (previous year: €49 million) were deducted from the cost of property, plant and equipment, and noncash benefits received amounting to €111 million were not capitalized as the cost of assets.

13 Property, plant and equipment