15 – Property, plant and equipment

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Development of property, plant and equipment 2013 (million €)

 

Land, land rights and buildings

Machinery and technical equipment

Miscellaneous equipment and fixtures

Construction in progress

Total

Cost

 

 

 

 

 

Balance as of January 1, 2013

8,683

38,745

3,246

3,245

53,919

Changes in scope of consolidation

1

1

2

Additions

219

884

194

3,412

4,709

Additions from acquisitions

75

1,426

4

6

1,511

Disposals

(187)

(705)

(157)

(151)

(1,200)

Transfers

118

(2,193)

54

(1,394)

(3,415)

Exchange differences

(226)

(650)

(55)

(129)

(1,060)

Balance as of December 31, 2013

8,682

37,508

3,287

4,989

54,466

Accumulated depreciation

 

 

 

 

 

Balance as of January 1, 2013

5,058

29,526

2,561

164

37,309

Changes in scope of consolidation

1

1

Additions

276

1,971

208

64

2,519

Disposals

(144)

(681)

(138)

(23)

(986)

Transfers

(26)

(1,947)

(38)

(5)

(2,016)

Exchange differences

(98)

(475)

(42)

(615)

Balance as of December 31, 2013

5,066

28,394

2,552

200

36,212

Net carrying amount as of December 31, 2013

3,616

9,114

735

4,789

18,254

Additions to property, plant and equipment in 2013 amounted to €6,220 million. Significant investments were particularly related to the construction of a TDI plant in Ludwigshafen, Germany; an MDI plant in Chongqing, China; an acrylic acid production complex in Camaçari, Brazil; and oil and gas production facilities and wells in Europe. Investments for expansion purposes were particularly made at the sites in Ludwigshafen, Germany; Antwerp, Belgium; Geismar, Louisiana; and Port Arthur, Texas. Property, plant and equipment rose by €1,511 million on account of acquisitions; €1,204 million came from the acquisition of assets from Statoil ASA, Stavanger, Norway, and €288 million from the acquisition of Pronova BioPharma ASA, Lysaker, Norway.

Impairments of €213 million under accumulated depreciation in 2013 resulted mostly from the full write-down of a plant in the Chemicals segment, as well as from a gas field development project in the Oil & Gas segment that was impaired on a recoverable amount of €82 million. The recoverable amount for both impairments was determined using the value in use.

Transfers of property, plant and equipment, primarily machinery and technical equipment, in the amount of €1.382 million primarily resulted from transfer of assets from fully consolidated to equity-accounted Group companies and from the reclassification of GASCADE Gastransport GmbH, Kassel, Germany, in the Oil & Gas segment.

In 2013, transfers included a write-up of €1 million.

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Development of property, plant and equipment 2012 (million €)

 

Land, land rights and buildings

Machinery and technical equipment

Miscellaneous equipment and fixtures

Construction in progress

Total

Cost

 

 

 

 

 

Balance as of January 1, 2012

8,465

39,226

3,066

2,677

53,434

Changes in scope of consolidation

19

189

11

29

248

Additions

269

1,056

227

2,426

3,978

Additions from acquisitions

34

60

4

8

106

Disposals

(130)

(617)

(140)

(8)

(895)

Transfers

106

(965)

100

(1,872)

(2,631)

Exchange differences

(80)

(204)

(22)

(15)

(321)

Balance as of December 31, 2012

8,683

38,745

3,246

3,245

53,919

Accumulated depreciation

 

 

 

 

 

Balance as of January 1, 2012

4,945

29,781

2,501

25

37,252

Changes in scope of consolidation

11

177

7

195

Additions

268

1,977

197

152

2,594

Disposals

(92)

(573)

(132)

(1)

(798)

Transfers

(38)

(1,680)

4

(12)

(1,726)

Exchange differences

(36)

(156)

(16)

(208)

Balance as of December 31, 2012

5,058

29,526

2,561

164

37,309

Net carrying amount as of December 31, 2012

3,625

9,219

685

3,081

16,610

Additions to property, plant and equipment in 2012 amounted to €4,084 million. Additions to property, plant and equipment resulting from acquisitions totaled €106 million, primarily due to the acquisition of Novolyte in the United States and China. Further investments related especially to the construction of a TDI plant in Ludwigshafen, Germany; the construction of an MDI plant in Chongqing, China; the construction of oil and gas production facilities and wells in Europe; the expansion of the MDI plant in Antwerp, Belgium; and the purchase of a new administrative building in Florham Park, New Jersey.

The amounts recorded under transfers were primarily related to property, plant and equipment that was reclassified into the natural gas trading disposal group.

In 2012, impairments of €260 million were recognized in depreciation. A significant portion of the impairments were related to the full write-down of a Norwegian oilfield development project in the Oil & Gas segment.

Changes in the scope of consolidation were predominantly related to the first-time full consolidation of hte Aktiengesellschaft.

In 2012, BASF exercised a purchase option for a plant site in China, which led to the reversal of a previous impairment of a purchase option. This €24 million reversal is included under transfers.