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Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2018
Text block1 [abstract]  
Property, Plant and Equipment

10. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is measured at cost including eligible borrowing costs less depreciation and accumulated impairment losses. Depreciation is provided on a straight-line basis over the expected average useful lives of the assets. Residual values are reviewed at least annually. Estimated useful lives by major class of assets are as follows:

 

•  Freehold buildings (no depreciation on freehold land)

    40 years

•  Leasehold land and buildings

    40 years (or life of lease if less)

•  Plant and equipment

    2–20 years

Property, plant and equipment is subject to review for impairment if triggering events or circumstances indicate that this is necessary. If an indication of impairment exists, the asset’s or cash generating unit’s recoverable amount is estimated and any impairment loss is charged to the income statement as it arises.

 

     € million      € million      € million  

Movements during 2018

    Land and
buildings		      Plant and
equipment		      Total  

Cost

         

1 January 2018

      4,462        14,936        19,398  

Hyperinflation restatement to 1 January 2018

      37        182        219  

Acquisitions of group companies

      11        31        42  

Additions

      249        1,091        1,340  

Disposals

      (97 )       (607 )       (704 ) 

Hyperinflationary adjustment

      49        93        142  

Currency retranslation

      (91 )       (351 )       (442 ) 

Reclassification as held for sale

      (17 )       (54 )       (71 ) 
  

 

 

     

 

 

     

 

 

  

31 December 2018

      4,603        15,321        19,924  
  

 

 

     

 

 

     

 

 

  

Accumulated depreciation

         

1 January 2018

      (1,429 )       (7,558 )       (8,987 ) 

Hyperinflation restatement to 1 January 2018

      (10 )       (106 )       (116 ) 

Depreciation charge for the year

      (125 )       (1,066 )       (1,191 ) 

Disposals

      62        529        591  

Hyperinflationary adjustment

      (7 )       (53 )       (60 ) 

Currency retranslation

      15        128        143  

Reclassification as held for sale

      10        33        43  
  

 

 

     

 

 

     

 

 

  

31 December 2018

      (1,484 )       (8,093 )       (9,577 ) 
  

 

 

     

 

 

     

 

 

  

Net book value 31 December 2018(a)

      3,119        7,228        10,347  
  

 

 

     

 

 

     

 

 

  

Includes capital expenditures for assets under construction

      130        956        1,086  
  

 

 

     

 

 

     

 

 

  

 

(a)

Includes €302 million of freehold land.

The Group has commitments to purchase property, plant and equipment of €324 million (2017: €323 million).

 

 

     € million      € million      € million  

Movements during 2017

    Land and
buildings		      Plant and
equipment		      Total  

Cost

         

1 January 2017

      4,745        16,462        21,207  

Acquisitions of group companies

      13        29        42  

Disposals of group companies

      (16 )       (78 )       (94 ) 

Additions

      314        1,218        1,532  

Disposals

      (19 )       (440 )       (459 ) 

Currency retranslation

      (384 )       (1,283 )       (1,667 ) 

Reclassification as held for sale(a)

      (191 )       (972 )       (1,163 ) 
  

 

 

     

 

 

     

 

 

  

31 December 2017

      4,462        14,936        19,398  
  

 

 

     

 

 

     

 

 

  

Accumulated depreciation

         

1 January 2017

      (1,483 )       (8,051 )       (9,534 ) 

Disposals of group companies

      1        29        30  

Depreciation charge for the year

      (142 )       (1,031 )       (1,173 ) 

Disposals

      14        400        414  

Currency retranslation

      100        543        643  

Reclassification as held for sale

      81        552        633  
  

 

 

     

 

 

     

 

 

  

31 December 2017

      (1,429 )       (7,558 )       (8,987 ) 
  

 

 

     

 

 

     

 

 

  

Net book value 31 December 2017(b)

      3,033        7,378        10,411  
  

 

 

     

 

 

     

 

 

  

Includes capital expenditures for assets under construction

      93        972        1,065  
  

 

 

     

 

 

     

 

 

  

 

(a)

Includes €548 million in property plant and equipment related to the Spreads business.
(b)

Includes €247 million of freehold land.