Report 2010 - Italcementi Group

Assets
5 Property, plant and equipment and Investment property
5.1 Property, plant and equipment
Land and
buildings
Quarries
Technical plant,
materials and
equipment
Other PPE and
construction in
progress
Total
(in thousands of euro)
Net carrying amount at Dec.31, 09 899,050 372,495 2,304,317 817,131 4,392,993
Gross amount 1,935,866 596,590 6,894,249 1,158,988 10,585,693
Accumulated depreciation (1,036,816) (224,095) (4,589,932) (341,857) (6,192,700)
Net carrying amount at Dec.31, 09 899,050 372,495 2,304,317 817,131 4,392,993
Additions 58,655 12,392 226,634 210,116 507,797
Change consolidation scope,
Reclassifications, Other 94,729 (19,012) 357,129 (431,568) 1,278
Disposals (3,148) (95) (3,027) (2,069) (8,339)
Depreciation and impairment losses (54,103) (12,550) (370,858) (27,631) (465,142)
Currency translation differences 32,962 6,660 94,319 32,620 166,561
Net carrying amount at Dec.31, 10 1,028,145 359,890 2,608,514 598,599 4,595,148
Gross amount 2,170,392 565,302 7,624,901 965,037 11,325,632
Accumulated depreciation (1,142,247) (205,412) (5,016,387) (366,438) (6,730,484)
Net carrying amount at Dec.31, 10 1,028,145 359,890 2,608,514 598,599 4,595,148
The main additions refer to the new production lines at the Ait Baha cement plant in Morocco and the
Yerraguntla cement plant in India.
Construction in progress at December 31, 2010, was 511,629 thousand euro (720,271 thousand euro at
December 31, 2009): the decrease for the year in the line “Change … other” related mainly to the
reclassifications to the final categories of assets relating to the cement plant in Ait Baha, Morocco, and the
Yerraguntla industrial site in India and the Martinsburg industrial site in North America.
“Depreciation and impairment losses” include impairment of 5.2 million euro on property, plant and equipment
(51.0 million euro at December 31, 2009) and refer mainly to industrial plants in Egypt and Saudi Arabia. The
review of the useful lives of industrial assets in the cement sector produced a positive effect of 29.2 million euro
in 2010.
Fixed assets held under finance leases and rental contracts were carried at a net amount of 27.7 million euro at
December 31, 2010 (31.8 million euro at December 31, 2009). They consist largely of “plant and machinery”
and “automobiles and aircraft”.
Expenses included under “Property, plant and equipment” amounted to 58.7 million euro at December 31, 2009
(58.7 million euro at December 31, 2009).
Fixed assets pledged as security for bank loans were carried at a net amount of 200 million euro at December
31, 2010 (213.3 million euro at December 31, 2009).
The useful life adopted by the Group for the main asset categories is as follows:
Civil and industrial buildings
10 – 33 years
Plant and machinery
5 – 30 years
Other property, plant and equipment 3 – 10 years
The range between the above minimum and maximum limits indicates the presence of components with
separate useful lives within each asset category.
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