Henkel Annual Report 2011 - Henkel AG & Co. KGaA Annual Report ...

Henkel Annual Report 2011
Accumulated depreciation
Consolidated financial statements
Notes to the consolidated statement of financial position
Land, land rights Plant and Factory Payments on
Total
and buildings machinery and office account and
equipment assets in course
in million euros
of construction
At January 1, 2010 828 1,873 664 – 3,365
Divestments – – – – –
Write-ups –4 –2 – – –6
Scheduled depreciation 57 152 91 – 300
Impairment losses 13 25 4 – 42
Disposals –40 –141 –60 – –241
Reclassifications into assets held for sale 1 –7 –32 –2 – –41
Reclassifications 6 1 –4 – 3
Translation differences 29 39 14 – 82
At December 31, 2010/January 1, 2011 882 1,915 707 – 3,504
Divestments –3 –12 –4 – –19
Write-ups –1 – – – –1
Scheduled depreciation 54 145 82 – 281
Impairment losses 9 11 1 – 21
Disposals –24 –125 –80 – –229
Reclassifications into assets held for sale 1 –6 1 1 – –4
Reclassifications – –1 1 – –
Translation differences 2 –1 2 – 3
At December 31, 2011 913 1,933 710 – 3,556
1 Of which 4 million euros cost (previous year: 6 million euros cost) and 2 million euros depreciation (previous year: 3 million euros) arising from reclassification from
assets held for sale, as disposal is no longer intended.
Net book values
Land, land rights Plant and Factory Payments on
Total
and buildings machinery and office account and
equipment assets in course
in million euros
of construction
At December 31, 2011 1,085 735 217 227 2,264
At December 31, 2010 1,120 772 227 96 2,215
Additions are stated at purchase or manufacturing cost. The
latter includes direct costs and appropriate proportions of
necessary overheads. Interest charges on borrowings are not
included, as Henkel does not currently hold any qualifying
assets in accordance with IAS 23 “Borrowing Costs.” A qualifying
asset is an asset that necessarily takes a substantial
period of time to get ready for its intended use. Cost figures
are shown net of investment grants and allowances. Incidental
acquisition costs incurred in order to make the asset ready
for the intended use are capitalized. An overview of the
primary investment projects undertaken during the fiscal
year can be found on pages 60 and 61.
Liabilities secured by mortgages at December 31, 2011 amounted
to 32 million euros (previous year: 30 million euros). The
periods over which the assets are depreciated are based on
their estimated useful lives as set out on page 111.
Scheduled depreciation and impairment losses recognized are
disclosed in the consolidated statement of income according
to the functions in which the assets are used.
Of the impairment charges amounting to 21 million euros,
further production optimization measures attributable to
the Adhesive Technologies business sector in North America
accounted for 6 million euros. Portfolio adjustments and
structural optimization projects, including the termination
of our Biozym joint venture, resulted in impairment losses
in the Laundry & Home Care business sector amounting to
11 million euros. Write-downs are allocated to the relevant
functions in the consolidated statement of income.
115