Changes in the carrying amount of property, plant and equipment for the years ended December 31, 2024, 2023 and 2022 are analysed in the following tables.


	Land and buildings			Machinery and equipment			Office furniture and equipment			Retail gallery and store furnishing			Leasehold improvements			Constr. in progress			Total
Cost as at December 31, 2022		157,801			114,979			13,985			7,338			22,119			1,012			317,234
Additions		413			1,368			473			104			3,103			4,768			10,229
Disposals		(8	)		(667	)		(1,392	)		(1,688	)		(950	)		(101	)		(4,806	)
Impairment loss		—			40			—			—			(118	)		—			(78	)
Reclassifications from constr. in progress		253			36			—			—			3,532			(3,821	)		—
Effect of translation adj.		(592	)		276			(71	)		104			(636	)		(19	)		(938	)
Cost as at December 31, 2023		157,867			116,032			12,995			5,858			27,050			1,839			321,641
Additions		385			3,459			363			138			2,823			95			7,263
Disposals		(79	)		(3,121	)		(988	)		(360	)		(6,576	)		(4	)		(11,128	)
Reclassifications to asset held for sale		(23,665	)		—			—			—			—			—			(23,665	)
Impairment loss		21			75			11			36			—			—			143
Reclassifications from constr. in progress		550			859			23			—			260			(1,692	)		—
Effect of translation adj.		671			(660	)		58			40			1,093			(9	)		1,193
Cost as at December 31, 2024		135,750			116,644			12,462			5,712			24,650			229			295,447


	Land and buildings			Machinery and equipment			Office furniture and equipment			Retail gallery and store furnishing			Leasehold improvements			Constr. in progress		Total
Accumulated depreciation as at December 31, 2022		(96,093	)		(100,570	)		(13,051	)		(7,035	)		(16,054	)		—		(232,803	)
Depreciation		(3,584	)		(3,189	)		(323	)		(172	)		(2,042	)		—		(9,310	)
Disposals		—			642			1,374			1,685			812			—		4,513
Effect of translation adj.		214			(279	)		72			(102	)		571			—		476
Accumulated depreciation as at December 31, 2023		(99,463	)		(103,396	)		(11,928	)		(5,624	)		(16,713	)		—		(237,124	)
Depreciation		(3,485	)		(3,318	)		(373	)		(159	)		(1,640	)		—		(8,975	)
Disposals		42			2,423			955			340			6,548			—		10,308
Reclassifications to asset held for sale		14,898			—			—			—			—			—		14,898
Effect of translation adj.		(669	)		510			(57	)		(39	)		(110	)		—		(365	)
Accumulated depreciation as at December 31, 2024		(88,677	)		(103,781	)		(11,403	)		(5,482	)		(11,915	)		—		(221,258	)

Net book value as at December 31, 2022		61,708			14,409			934			303			6,065			1,012		84,431
Net book value as at December 31, 2023		58,404			12,636			1,067			234			10,337			1,839		84,517
Net book value as at December 31, 2024		47,073			12,863			1,059			230			12,735			229		74,189

Annual rate of depreciation for 2024 and 2023	0%-10%			10%-25%			10%-20%			25%-35%			10%-20%				—

As at December 31, 2024 and 2023, the carrying amount of property, plant and equipment temporarily idle is 4,744 and 5,568, respectively.

As at December 31, 2024, properties with a carrying amount of 32,231 (31,576 as at December 31, 2023) are subject to registered mortgages to guarantee the long-term borrowings (see note 20).

The following tables show a breakdown of property, plant and equipment by country.


	31/12/24		31/12/23
Italy		41,523		44,239
Romania		16,585		17,520
United States of America		11,381		18,259
Brazil		2,574		3,167
Europe		1,168		919
China		779		166
Other countries		179		247
Total		74,189		84,517

As at December 31, 2024, the Group performed the impairment assessment of property, plant and equipment and right-of-use assets included in several cash generating units (CGUs), such as the Italian upholstered furniture plant CGU and certain directly operated retail stores CGUs that presented indicators of impairment. The Group performed the impairment assessment in accordance with its accounting policy discussed in note 4(i).

Further, the significant assumptions used by the Group in estimating the value in use were the annual sales growth rates used to estimate the forecasted revenue for the years 2025-2029, the weighted average cost of capital rates and the long-term growth rates, all of which were determined at the CGU level, including the effects of the duration of the current economic uncertainty. Such significant assumptions involved a high degree of subjectivity by management and reasonably possible changes to these assumptions have a significant effect on the value in use. Specifically, such assumptions were based on the Group’s future business performances and other forward-looking assumptions that entail significant judgments by management and are heavily impacted by several external events. Finally, the projections of cash flows for the years 2025-2029 have been determined based on the Business Plan approved by the Board of Directors. The forecasts have been developed taking into account the actual results achieved by the Group.

The significant assumptions that were used in performing the 2024 impairment test for the Italian upholstered furniture plant CGU and certain directly operated retail stores CGUs are as follows:

— Italian upholstered furniture plant: weighted average cost of capital rate 8.99%, long-term growth rate 2.01%, annual sales growth rate for 2025 equal to +38.11% and annual sales growth rate (average of 2026-2029 period) equal to +5.00%. The significant growth projected for 2025 is primarily due to the relocation to Italy of part of the production that had been carried out in China in previous years.

— Directly operated retail stores CGUs located in the U.S.: weighted average cost of capital rate 9.98%, long-term growth rate 2.54%, annual sales growth rate for 2025 equal to +12.04% and annual sales growth rate (average of 2026-2029 period) equal to +9.52%.

— Directly operated retail stores CGUs located in Italy: weighted average cost of capital rate 8.99%, long-term growth rate 2.01%, annual sales growth rate for 2025 equal to +16.86% and annual sales growth rate (average of 2026-2029 period) equal to +5.24%.

— Directly operated retail stores CGUs located in Spain: weighted average cost of capital rate 8.93%, long-term growth rate 2.10%, annual sales growth rate for 2025 equal to +15.19% and annual sales growth rate (average of 2026-2029 period) equal to +5.48%.

— Directly operated retail stores CGUs located in the UK: weighted average cost of capital rate 8.97%, long-term growth rate 2.85%, annual sales growth rate for 2025 equal to 4.95% and annual sales growth rate (average of 2026-2028 period) equal to +8.96%.

For property, plant and equipment temporarily idle, the fair value less costs to sell was estimated through independent third-party appraisals, which assessed the fair value of land and buildings using the comparable market method and assessed the fair value of machinery and equipment using the depreciated replacement cost method, adjusted for an obsolescence rate and a marketability rate.

As a result of the 2024 and 2023 impairment assessment performed by the Group, impairment losses of zero and 118, respectively, have emerged for property, plant and equipment. Conversely, with reference to other specific CGUs, an impairment reversal of 143 and 40 in 2024 and 2023, respectively, has emerged.

The Group conducted sensitivity analyses across all Cash Generating Units (CGUs). In particular, stress scenarios were defined by gradually increasing the WACC rate by up to 2 percentage points and reducing the terminal growth rate (g-rate) assumptions down to zero. The results of the analysis for the year 2024 indicated that, even under these adverse conditions, the CGUs related to the Italian plant and the majority of store CGUs would not require impairment. Within the most negative stress scenario considered, the risk of impairment would be limited to two store CGUs in the United States, one store in Spain, and two stores in Italy.