Shareholders' Letter

Land, Advances made
buildings and and assets
leasehold Technical Other under
In CHF million improvements installations installations construction Total
At cost
Balance at 31 December 2008, restated 3,025 22,578 2,903 319 28,825
Additions 7 969 155 300 1,431
Disposals (18) (518) (182) – (718)
Additions from acquisition of subsidiaries – – 2 – 2
Disposals from sale of subsidiaries – (27) (1) – (28)
Adjustment to dismantlement and restoration costs – (6) – – (6)
Reclassification to non-current assets held for sale 7 – – – 7
Other reclassifications 4 184 95 (319) (36)
Foreign currency translation adjustments – (8) – – (8)
Balance at 31 December 2009 3,025 23,172 2,972 300 29,469
Accumulated depreciation and impairment losses
Balance at 31 December 2008, restated 2,096 16,608 1,907 – 20,611
Depreciation 35 1,122 271 – 1,428
Impairment losses – 10 4 – 14
Disposals (9) (511) (174) – (694)
Reclassification to non-current assets held for sale 1 – – – 1
Other reclassifications 1 (24) (20) – (43)
Disposals from sale of subsidiaries – (17) (1) – (18)
Foreign currency translation adjustments – (6) – – (6)
Balance at 31 December 2009 2,124 17,182 1,987 – 21,293
Net carrying amount
Net carrying amount at 31 December 2009 901 5,990 985 300 8,176
Net carrying amount at 31 December 2008, restated 929 5,970 996 319 8,214
Impairment losses on property, plant and equipment result from changes in estimated future cash
flows anticipated from the use and ultimate disposal of these items of property, plant and equipment.
In 2010, impairment losses on property, plant and equipment amounted to CHF 7 million
(prior year: CHF 14 million).
In 2010, borrowing costs amounting to CHF 12 million were capitalised (prior year: CHF 15 million).
The average interest rate used for the capitalisation of borrowing costs was 2.6% (prior year: 2.6%).
As of 31 December 2010, real estate with a carrying amount of CHF 11 million (prior year: CHF 15
million) was pledged to secure mortgages. As of 31 December 2010, the carrying amount of property,
plant and equipment acquired under finance leases amounted to CHF 604 million (prior year:
CHF 619 million). For further information on the adjustments to the costs of dismantling and
restoration. See Note 28.
Consolidated financial statements 178 | 179
Notes to the consolidated financial statements