Engineering
Engineering
Engineering
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
3.6 Consolidated financial statements Notes to the consolidated financial statements<br />
Impairment losses of property, plant and equipment are for the most<br />
part included in cost of sales and to a minor extent in selling and<br />
administrative expenses.<br />
In 2009/2010 given the demand situation in the Components<br />
Technology business area, in the Forging group and Bilstein group<br />
operating units impairment losses of €32 million were recorded. €2<br />
million of the total impairment relates to land and buildings, €29<br />
million to technical machinery and equipment and €1 million to other<br />
equipment. The recoverable amounts used to calculate the impairment<br />
losses correspond in each case to the values in use. A discount rate of<br />
11.6% and 13.1%, respectively was used to calculate the values in<br />
use.<br />
In 2010/2011 impairment losses of €1,685 million were recorded in<br />
the Steel Americas business area. €237 million of the total impairment<br />
relates to buildings, €1,321 million to technical machinery and<br />
equipment and €100 million to construction in progress. Reasons for<br />
the impairment losses are increased acquisition costs caused by cost<br />
overruns on the construction of the Brazilian plant, significant<br />
prolonged losses due to the delayed ramp-up, the strength of the<br />
million €<br />
Consolidated financial statements<br />
156 | 157<br />
Brazilian real affecting the competitive position of the Brazilian plant<br />
both now and in the near future as well as the slower recovery and<br />
renewed weakness of markets in the USA and Europe; also the<br />
increase of the weighted average cost of capital was a strain. The<br />
recoverable amounts used to calculate the impairment losses<br />
correspond in each case to the values in use. A discount rate of 10.5%<br />
was used to calculate the values in use.<br />
In the Steel Americas business area the carrying amounts of property,<br />
plant and equipment in the amount of €6,259 million are also in the<br />
following fiscal year exposed to valuation risks; these are in particular<br />
the parameters of the capital markets as well as the expectation of the<br />
long-term development of the exchange rate and the assessment of<br />
the ability to achieve the operational aims in terms of cost efficiency<br />
and market entrance.<br />
Property, plant and equipment include leased buildings, technical<br />
machinery and equipment and other equipment that have been<br />
capitalized, where the terms of the lease require the Group, as lessee,<br />
to assume substantially all of the benefits and risks of use of the<br />
leased asset (finance lease).<br />
Gross amounts<br />
Sept. 30,<br />
2010<br />
Sept. 30,<br />
2011<br />
Accumulated depreciation and<br />
impairment losses Net amounts<br />
Land, leasehold rights and buildings including buildings on third-party land 99 73 46 34 53 39<br />
Technical machinery and equipment 89 52 66 37 23 15<br />
Other equipment, factory and office equipment 47 35 32 23 15 12<br />
Assets under finance lease 235 160 144 94 91 66<br />
Sept. 30,<br />
2010<br />
Property, plant and equipment have been pledged as security for financial payables of €5 million (2010: €100 million).<br />
Sept. 30,<br />
2011<br />
Sept. 30,<br />
2010<br />
Sept. 30,<br />
2011