15. Property, Plant and Equipment


				Machinery and						Work in
		Buildings		equipment		Other assets		Land and farms	Added value	progress		Total

Annual average depreciation rate		3.51	%	5.42	%	17.81	%	—	—	—		—
Cost
Balances on December 31, 2016		2,683,827		15,345,570		299,131		4,368,577	—	390,671		23,087,775
Transfers		141,161		485,182		3,297		392	—	(633,560)		—
Transfers between other assets		(4,500)		4,434		(7,035)		—	—	(8,705)		(15,806)
Additions		4,648		106,422		6,527		2,257	—	73,174		851,594
Write-offs	(a)	(9,463)		(95,277)		(13,525)		(26,161)	—	(4,697)		(149,123)
Interest capitalization		—		—		—		—	—	8,286		8,286
Balances on December 31, 2017		2,815,673		15,846,331		288,395		4,348,592	—	483,735	(b)	23,782,726
Transfers		127,015		439,553		12,881		750,824	—	(1,330,273)		—
Transfers between other assets		4,500		1,867		1,318		—	—	(8,945)		(1,260)
Additions		2,319		143,058		25,913		705	—	1,321,350		1,493,345
Acquisition Facepa		18,505		46,165		1,920		7,446	49,814	3,395		127,245
Acquistion PCH Mucuri		102,176		3,831		26		4,291	—	2		110,326
Write-offs	(a)	(8,654)		(67,280)		(1,183)		(34,523)	—	—		(111,640)
Interest capitalization		—		—		—		—	—	1,772		1,772
Balances on December 31, 2018		3,061,534		16,413,525		329,270		5,077,336	49,814	471,036	(b)	25,402,515

Depreciation
Balances on December 31, 2016		(762,686)		(5,908,943)		(180,866)		—	—	—		(6,852,495)
Transfers		8		270		(278)		—	—	—		—
Write-offs	(a)	3,172		64,536		13,145		—	—	—		80,853
Depreciation		(70,315)		(701,822)		(27,719)		—	—	—		(799,856)
Balances on December 31, 2017		(829,821)		(6,545,959)		(195,718)		—	—	—		(7,571,498)
Transfers		7		1,391		(1,398)		—	—	—		—
Write-offs	(a)	1,462		60,506		196		—	—	—		62,164
Depreciation		(78,264)		(760,634)		(29,844)		—	(4,178)	—		(87,292)
Balances on December 31, 2018		(906,616)		(7,244,696)		(226,764)		—	(4,178)	—		(8,382,254)

Net
Balances on December 31, 2017		1,985,852		9,300,372		92,677		4,348,592	—	483,735	(b)	16,211,228
Balances on December 31, 2018		2,154,918		9,168,829		102,506		5,077,336	45,636	471,036	(b)	17,020,259

^(a)

In addition to disposals, write-offs include obsolescence and scrapping;

^(b)

The balance of work in progress comes from investments made in line with its strategy to maximize return for shareholders, of which: (i) adjacent business - R$ 69,140; (ii) structural competitiveness - R$ 247,550; and (iii) other investments - R$ 154,346 (On December 31, 2017, (i) adjacent business - R$ 134,299; (ii) structural competitiveness - R$ 264,606; and (iii) other investments - R$ 84,830).

Machinery and equipment include amounts recognized as financial leasing outlined in Note 19.6.

15.1. Assets given as collateral

On December 31, 2018, assets given as collateral in loan operations and lawsuits amounted to R$ 11,505,386 (R$ 11,571,632 on December 31, 2017).

15.2. Capitalized expenses

On December 31, 2018, interests were capitalized in the amount of R$ 1,772 referring to the investments in adjacent business and structural competitiveness (December 31, 2017 the amount of R$ 8,286 referring to the same investments).

The amount considers acquisitions net of investments at the average rate of 0.54% per month.