Bayer Group - Investor-Relations

BAYER ANNUAL REPORT 2011 CONSOLIDATED FINANCIAL STATEMENTS 215
Further capital expenditures were made for the expansion of production capacities in China. The�total
capital expenditures of €1,232�million (2010: €1,212�million) for property, plant and equipment included
€221�million (2010: €224�million) in China.
In 2011 borrowing costs of €23�million (2010:�€31�million) were capitalized as components of the cost of
acquisition or construction of qualifying assets, applying an average interest rate of 4.5% (2010:�4.5%).
Capitalized property, plant and equipment included assets with a total net value of €463�million
(2010:�€464�million) held under fi nance leases. The cost of acquisition and construction of these assets
as of the closing date totaled €1,177�million (2010:�€1,128�million). They comprised plant installations
and machinery with a carrying amount of €216�million (2010:�€232�million), buildings with a carrying
amount of €135�million (2010:�€139�million) and other property, plant and equipment with a carrying
amount of €112�million (2010:�€93�million). For information on the liabilities arising from fi nance leases
see Note [27].
In 2011 rental payments of €239�million (2010:�€216�million) were made for assets leased under operating
leases as defi ned in ias�17 (Leases).
Lease payments of €4�million are expected to be received in 2012 from operating leases – as defi ned in
ias�17 (Leases) – pertaining to property, plant and equipment.
In 2008 Bayer sold a registered usufructuary right to real estate to a leasing company and leased it back
immediately under an agreement that includes a right of repurchase upon expiration of the lease. The
carrying amount of the real estate in 2011 was €146�million (2010:�€153�million). This transaction, which
was accounted for as a secured loan, does not restrict the operational use of the real estate.
Notes
18. Property, plant and equipment