NOTE 15—PROPERTY, PLANT AND EQUIPMENT


*(in millions of Euros)*	Land and Property Rights			Buildings			Machinery and Equipment			Construction Work in Progress			Other			Total
Net balance at January 1, 2017		19			209			1,020			221			8			1,477
Additions		1			2			50			224			5			282
Disposals		—			(1	)		(3	)		—			—			(4	)
Depreciation expense		(4	)		(13	)		(135	)		—			(7	)		(159	)
Transfer during the period		—			18			223			(237	)		4			8
Effects of changes in foreign exchange rates		(2	)		(9	)		(66	)		(10	)		—			(87	)

Net balance at December 31, 2017		14			206			1,089			198			10			1,517

Cost		25			321			1,712			204			29			2,291
Less accumulated depreciation and impairment		(11	)		(115	)		(623	)		(6	)		(19	)		(774	)

Net balance at December 31, 2017		14			206			1,089			198			10			1,517


*(in millions of Euros)*	Land and Property Rights			Buildings			Machinery and Equipment			Construction Work in Progress			Other			Total
Net balance at January 1, 2016		21			158			773			296			7			1,255
Additions		—			6			56			297			3			362
Disposals		—			—			(6	)		(5	)		—			(11	)
Depreciation expense		(4	)		(13	)		(120	)		—			(7	)		(144	)
Transfer during the period		1			55			309			(370	)		5			—
Effects of changes in foreign exchange rates		1			3			8			3			—			15

Net balance at December 31, 2016		19			209			1,020			221			8			1,477

Cost		27			324			1,581			228			27			2,187
Less accumulated depreciation and impairment		(8	)		(115	)		(561	)		(7	)		(19	)		(710	)

Net balance at December 31, 2016		19			209			1,020			221			8			1,477

Building, machinery and equipment includes the following amounts where the Group is a lessee under a finance lease:


	At December 31, 2017							At December 31, 2016
*(in millions of Euros)*	Gross value		Accumulated depreciation			Net		Gross value		Accumulated depreciation			Net
Buildings under finance lease		30		(5	)		25		31		(3	)		28
Machinery and equipment under finance lease		62		(27	)		35		50		(21	)		29

Total		92		(32	)		60		81		(24	)		57

The future aggregate minimum lease payments under non-cancellable finance leases are as follows:


*(in millions of Euros)*	At December 31, 2017		At December 31, 2016
Less than 1 year		15		13
1 to 5 years		37		36
More than 5 years		19		22

Total		71		71

The present value of future aggregate minimum lease payments under non-cancellable finance leases are as follows:


*(in millions of Euros)*	At December 31, 2017		At December 31, 2016
Less than 1 year		14		10
1 to 5 years		30		35
More than 5 years		16		15

Total		60		60

Depreciation expense and impairment losses

Total depreciation expense and impairment losses relating to property, plant and equipment and intangible assets are presented in the Consolidated Income Statement as follows:


*(in millions of Euros)*	Year ended December 31, 2017			Year ended December 31, 2016			Year ended December 31, 2015
Cost of sales		(160	)		(147	)		(132	)
Selling and administrative expenses		(8	)		(6	)		(6	)
Research and development expenses		(3	)		(2	)		(2	)
Impairment		—			—			(452	)

Total		(171	)		(155	)		(592	)

The amount of contractual commitments for the acquisition of property, plant and equipment is disclosed in NOTE 26—Commitments.

Impairment tests for property, plant and equipment and intangibles assets

No triggering events were identified at December 31, 2017 and 2016 regarding our cash-generating units.

Certain triggering events were identified as at December 31, 2015 for certain cash-generating units. In accordance with the accounting policies described in NOTE 2.6 of the Consolidated Financial Statements, these cash-generating units were tested for impairment.

For the Muscle Shoals cash-generating unit, a P&ARP cash-generating unit, the following triggering events were identified at December 31, 2015:

Continuing under performance and actual 2015 Muscle Shoals results showing a much lower financial performance than the initial business plan prepared as part of the Wise acquisition, and

Revised budget and strategic plan for Muscle Shoals downgraded, notably after taking into account new sale agreements commercial conditions for the can/packaging business.

Its value in use was determined based on projected cash flows expected to be generated by the can/packaging business at Muscle Shoals. These cash flow forecasts were prepared by the Group Management and reviewed by the Board of Directors. The discount rate applied to cash flows projections was 11% and cash flows beyond the projection period were extrapolated using a 0% growth rate. The value in use calculation led to a recoverable value being €400 million lower than the carrying value.

Management determined that the fair value less cost of disposal of Muscle Shoals cash-generating unit did not exceed the value in use.

Accordingly, an impairment charge of €400 million was recorded as at December 31, 2015, reducing the Muscle Shoals’ cash- generating unit intangible assets and property, plant and equipment.

For the Constellium Valais cash-generating units, certain triggering events were identified in 2015 (cash-generating unit Valais—AS&I operating segment: operational reorganization and industrial restructuring and cash-generating unit Valais—A&T operating segment: expected adverse change in key sale agreements).

Based on the recoverable value approached from both a value in use and a fair value models, the carrying value of the Property, plant and equipment was fully impaired as at December 31, 2015. The related impairment charge totaled €49 million.