2011 Annual Report - OTCIQ.com

112 Notes
Property, Plant and Equipment
Borrowing costs in the amount of €312 million were capitalized
in 2011 (2010: €316 million) as part of the historical cost of
property, plant and equipment.
In 2011, the Company recorded depreciation of property,
plant and equipment in the amount of €3,261 million (2010:
€3,278 million). Impairment charges, including those relating
to the issues already mentioned, were recognized on property,
plant and equipment in the amount of €2.858 million (2010:
€1,012 million). A total of €25 million in reversals of impairments
on property, plant and equipment was recognized in 2011
(2010: €46 million).
The corresponding payment obligations under finance leases
are due as shown below:
The present value of the minimum lease obligations is reported
primarily under liabilities from leases.
Regarding future obligations under operating leases where
economic ownership is not transferred to E.ON as the lessee,
see Note 27.
E.ON also functions in the capacity of lessor. The lease installments
from operating leases are due as shown in the table
at right:
In 2011 there were restrictions on disposals involving primarily
land and buildings, as well as technical equipment and
machinery, in the amount of €876 million (2010: €719 million).
Certain power plants, gas storage facilities and supply networks
are utilized under finance leases and capitalized in the
E.ON Consolidated Financial Statements because the economic
ownership of the assets leased is attributable to E.ON.
The property, plant and equipment thus capitalized had the
following carrying amounts as of December 31, 2011:
E.ON as Lessee—Carrying Amounts of Capitalized Lease Assets
€ in millions
December 31
2011 2010
Land 4 5
Buildings 35 45
Technical equipment, plant and machinery 695 530
Other equipment, fixtures, furniture and office equipment 92 6
Net carrying amount of capitalized lease assets 826 586
E.ON as Lessee—Payment Obligations under Finance Leases
Minimum lease payments Covered interest share Present values
€ in millions
2011 2010 2011 2010 2011 2010
Due within 1 year 110 48 48 27 62 21
Due in 1 to 5 years 327 183 191 102 136 81
Due in more than 5 years 1,336 655 756 309 580 346
Total 1,773 886 995 438 778 448
E.ON as Lessor—Operating Leases
€ in millions
Nominal value of outstanding lease
installments
2011 2010
Due within 1 year 93 93
Due in 1 to 5 years 238 231
Due in more than 5 years 362 412
Total 693 736
See Note 17 for information on receivables from finance leases.