Values

112
Group Financial Statements
Notes
13 Property, Plant and Equipment
Land, rights Plant, techni-
Other Advance
Total
equivalent cal equipment equipment, payments and
to land and and machinery fi xtures, furni- construction in
buildings
ture and offi ce progress
in € millions
Acquisition/production cost
equipment
Balance as of 1/1/2009 2,042 3,575 1,266 69 6,952
Currency translation differences 4 (6) 4 – 2
Acquisitions 3 17 5 – 25
Disposals and reclassifi cations according to IFRS 5 (7) (1) 4 (1) (5)
Additions 31 63 70 68 232
Disposals (4) (125) (73) (7) (209)
Reclassifi cations and other changes 20 61 (1) (68) 12
Balance as of 12/31/2009
Depreciation/amortization
2,089 3,584 1,275 61 7,009
Balance as of 1/1/2009 899 2,599 894 1 4,393
Currency translation differences (1) (11) 3 – (9)
Acquisitions 1 8 3 – 12
Disposals and reclassifi cations according to IFRS 5 (10) (1) 3 – (8)
Regular additions 60 183 110 – 353
Impairment losses 24 135 3 2 164
Disposals (2) (118) (68) – (188)
Write-ups – – (1) (1) (2)
Reclassifi cations and other changes (5) 15 2 – 12
Balance as of 12/31/2009 966 2,810 949 2 4,727
Carrying amount as of 12/31/2009 1,123 774 326 59 2,282
Carrying amount as of 12/31/2008 1,143 976 372 68 2,559
Prinovis Germany took an impairment of €-111 million on assets
eff ective June 30, 2009. Th e main reason for this is a signifi
cant decline in revenues in the gravure printing market. A
recovery in the printing business is not expected until 2011. A
program launched in 2009 to increase competitiveness through
repositioning, restructuring and cost-cutting will be able to
produce results over the medium term. Th e impairment was
based on the fair value less cost to sell calculated as the net
present value of future cash fl ows. Th e impairment test as of
June 30, 2009 was based on a discount rate of 7.02 percent.
Running this test again eff ective December 31, 2009, with a
discount rate of 7.21 percent did not identify any further need
for impairment.
At Arvato Print Italy, the ongoing recession in Italy, the
collapse of the advertising markets in the magazine sector,
falling order volumes and unfavorable price developments
led to a signifi cant downturn in revenues and earnings. Th e
impairment test as of December 31, 2009, identifi ed a required
impairment of €30 million. Th is was taken into account in the
form of unscheduled depreciation for technical equipment
and machinery. Th e impairment test was based on a discount
rate of 7.21 percent. Th e cash fl ow forecasts for the impairment
test are based on reasonable and justifi able assumptions by
management and are the best estimate of the underlying economic
conditions.
Th e Spanish real estate crisis necessitated an impairment
test for the real estate holdings of Motorpresse Spain. Th e property,
with the building on it, was evaluated based on a DCF
model, taking into account an average annual market rent and a
discount rate of 9.0 percent. Th e result was a devaluation of the
property with its building in the amount of €-13 million.
Impairments on property, plant and equipment totaled
€-164 million.
Bertelsmann Annual Report 2009