Annual Report 2007 - Severstal

Financial statements
OAO Severstal and subsidiaries
Notes to the consolidated financial statements
for the year ended December 31, 2007
(Amounts expressed in thousands of US dollars, except as otherwise stated)
19. Property, plant and equipment
The movements in property, plant and equipment are as follows:
Community
Other
and
Land and Plant and productive infrastructure Constructionbuildings
machinery assets assets in-progress Total assets
Cost:
December 31, 2004 1,041,866 2,725,924 186,909 40,743 753,664 4,749,106
Reclassifications (6,288) 6,908 215 (835) – –
Additions:
External – – – – 1,216,875 1,216,875
Interest capitalised – – – – 13,128 13,128
Business combinations 417,874 1,067,527 3,051 – 50,337 1,538,789
Disposals (5,087) (66,679) (10,294) (1,243) (12,972) (96,275)
Business de-combinations (5,542) (5,720) (24) – (258) (11,544)
Transfer to other assets – – – – (12,060) (12,060)
Transfers 109,826 595,373 59,452 22,622 (787,273) –
Foreign exchange difference (73,628) (195,505) (8,031) (1,759) (33,840) (312,763)
December 31, 2005 1,479,021 4,127,828 231,278 59,528 1,187,601 7,085,256
Reclassifications (3,170) 6,769 (4,676) 1,077 – –
Additions:
External – – – – 1,243,514 1,243,514
Interest capitalised – – – – 10,129 10,129
Business combinations 81,452 11,203 917 687 1,728 95,987
Disposals (8,789) (199,593) (20,782) (765) (22,244) (252,173)
Business de-combinations – – – (394) – (394)
Transfer to other assets – – – – (11,907) (11,907)
Transfers 401,347 1,259,628 35,821 15,809 (1,712,605) –
Foreign exchange difference 164,215 415,750 22,769 6,063 90,446 699,243
December 31, 2006 2,114,076 5,621,585 265,327 82,005 786,662 8,869,655
Reclassifications 9,978 (26,117) 6,669 9,470 – –
Additions:
External – – – – 1,594,681 1,594,681
Interest capitalised – – – – 4,101 4,101
Business combinations 77,829 108,055 2,501 631 9,563 198,579
Disposals (11,318) (187,234) (11,885) (14,613) (6,256) (231,306)
Business de-combinations (53,885) (154,917) (4,262) (2,277) (4,981) (220,322)
Reclassified to assets held for sale (182,171) (166,972) (13,863) (152) (56,508) (419,666)
Transfer to other assets – (7,793) – – (23,729) (31,522)
Transfers 183,703 1,126,899 74,378 26,683 (1,411,663) –
Foreign exchange difference 167,214 452,205 24,806 7,583 60,669 712,477
December 31, 2007 2,305,426 6,765,711 343,671 109,330 952,539 10,476,677
90 Severstal Annual Report 2007