Today, Wavin - Jaarverslag.com

Wavin Annual Report 2010 | page 110Depreciation chargeThe depreciation charge is recognised in the following line items in the income statement:(€ x 1,000) 2010 2009Cost of sales (37,476) (39,350)Research & development expenses (211) (249)Administrative expenses (9,379) (10,425)Other operating expenses (74) (74)Total depreciation (47,140) (50,098)Recurring (47,034) (49,994)Non-recurring (106) (104)Leased plant and machineryThe Group has no material fi nancial lease agreements.SecurityAt 31 December 2010 properties with a carrying amount of € 30.9 million (2009: € 33.5 million) were subject to a registereddebenture to secure bank loans (see note 26).Assets under constructionAssets under construction of € 20.0 million (2009: € 10.8 million) are mainly related to investments in production equipmentand installations. Increase of the level of assets in progress is due to the start up of some large investment projects in thesecond half of the year.Capitalised borrowing costsLike in 2009 no borrowing costs were capitalised as the assets under construction per 31 December 2010 and investmentsin 2010 did not classify as qualifying assets.