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Property, plant and equipment

12 Months Ended

Dec. 31, 2019

Disclosure of detailed information about property, plant and equipment [abstract]

10.

Property, plant and equipment

Cost of property, plant and equipment is as follows (in millions of Mexican pesos):

	Land		Buildings		Machinery and equipment		Transportation equipment		Furniture, mixtures and computer equipment		Constructions and machinery in-progress		Total

Balance to January 1, 2018		1,094		4,776		24,805		158		129		3,434		34,396

Additions		137		90		1,305		1		11		1,370		2,914
Translation adjustments		(14)		(186)		(543)				(1)		(4)		(748)
Balance as of December 31, 2018		1,217	$	4,680	$	25,567	$	159	$	139	$	4,800	$	36,562

Additions		89		591		532		2		4		53		1,271
Translation adjustments		(15)		(133)		(563)		0		(2)		(92)		(805)
Balance as of December 31, 2019	$	1,291	$	5,138	$	25,536	$	161	$	141	$	4,761	$	37,028

Accumulated depreciation of property, plant and equipment is as follows (in millions of Mexican pesos):

	Buildings		Machinery and equipment		Transportation equipment		Furniture, mixtures and computer equipment				Total

Balance to January 1, 2018		1,033		17,474		80			72			18,659

Depreciation expense		37		1,057		3			5			1,102
Translation effects		(15)		(151)		(2)			(2)			(170)
Balance as of December 31, 2018		1,055	$	18,380	$	81		$	75	$		19,591

Depreciation expense		30		1,063		4			2			1,099
Translation effects		(3)		(396)		0			0			(399)
Balance as of December 31, 2019	$	1,082	$	19,047	$	85		$	77	$		20,291

The depreciation expense for the years ended December 31, 2019, and 2018 amounted to $ 1,098,749 and $ 1,102,331, respectively.

The net book value of property, plant and equipment is as follows (in millions of Mexican pesos):

Net Book Value:	Land		Buildings		Machinery and Equipment		Transportation equipment		Furniture, mixtures and computer equipment		Constructions and machinery in-progress		Total

Balance as of December 31, 2017	$	1,094	$	3,743	$	7,331	$	78	$	57	$	3,434	$	15,737

Balance as of December 31, 2018	$	1,217	$	3,625	$	7,187	$	78	$	64	$	4,800	$	16,971

Balance as of December 31, 2019	$	1,291	$	4,056	$	6,489	$	76	$	64	$	4,761	$	16,737

A facility of the Company located in Lorain, Ohio in the United States was idled in June of 2015 and management has no near-term plans to restart the facility. The expectation is that it will be restarted when market conditions improve substantially, particularly in the oil and gas drilling industry. The Company has property, machinery, and equipment with a net book value of approximately USD$ 41.5 and USD$ 32.7 million as of December 31, 2019 and 2018, pertaining to the Lorain, Ohio facility after recording an impairment charge when the facility was idled.