Balance Sheet Disclosures


22. Property, Plant and Equipment

Change in Property, Plant and Equipment
in million €Land and buildingsLeasehold improvements Technical equipment and machineryOther equipment, operating and office equipmentPrepayments and assets under constructionTotal
As at 1 Jan. 20166,122.81,767.9467.35,947.1184.514,489.6
Currency translation22.
Reclassifications of assets held for sale-156.5-30.9-2.8-47.5-0.1-237.8
Additions from acquisitions142.333.
As at 31 Dec. 2016/1 Jan. 20176,627.81,894.6567.46,244.2285.515,619.5
Currency translation8.74.0-1.49.1-0.120.3
Additions to/disposals from scope of consolidation1.
Reclassifications of assets held for sale22.022.60.340.50.085.4
Additions from acquisitions175.96.92.956.30.3242.3
As at 31 Dec. 20177,641.52,107.8619.36,759.7416.317,544.6
Depreciation, amortisation and impairments  
As at 1 Jan. 20162,088.1987.2185.93,561.51.26,823.9
Currency translation7.
Reclassifications of assets held for sale-105.2-21.7-1.3-34.40.0-162.6
Additions from acquisitions0.
Reversals of impairment losses-19.10.0-0.5-1.00.0-20.6
As at 31 Dec. 2016/1 Jan. 20172,120.51,033.6235.43,802.31.47,193.2
Currency translation5.04.0-
Additions to/disposals from scope of consolidation1.
Reclassifications of assets held for sale10.822.
Reversals of impairment losses-7.2-
As at 31 Dec. 20172,280.21,161.9269.94,213.71.47,927.1
Carrying amount as at 1 Jan. 20164,034.7780.7281.42,385.6183.37,665.7
Carrying amount as at 31 Dec. 2016/1 Jan. 20174,507.3861.0332.02,441.9284.18,426.3
Carrying amount as at 31 Dec. 20175,361.3945.9349.42,546.0414.99,617.5

Additions from acquisitions in financial year 2017 relate primarily to the first-time consolidation of REWE Dortmund SE & Co. KG, Dortmund. The additions from acquisitions are described under note 4 "Acquisitions". The BILLA Italy business unit was included in the "Reclassification of assets held for sale" line item (see note 5 "Divestitures"). The other additions comprise in particular investments for expanding the store network as well as capital expenditures for replacements and expansions at retail stores, warehouse sites and production companies. The majority of the disposals resulted from the disposal or scrapping of operating and office equipment.

During the financial year, borrowing costs in the amount of 0.1 million euros (previous year: 0.0 million euros) were recognised. These concern the establishment of a logistics centre for the Retail Germany business segment. The weighted average cost of capital was used as a basis for determining the borrowing costs requiring capitalisation.

The cumulative cost and/or cumulative depreciation was reclassified if it was attributable to assets that were recognised under other items of non-current assets and that must now be presented in other items. With regard to the impairment losses taken on property, plant and equipment during the financial year, please see the remarks under note 13 "Depreciation, Amortisation and Impairments". With regard to the reversals of impairment losses, please see the remarks under note 10 "Other Operating Income".

Property, plant and equipment in the amount of 217.5 million euros (previous year: 443.0 million euros) serves as collateral for financial liabilities. Purchase commitments of 272.2 million euros (previous year: 120.2 million euros) were entered into for property, plant and equipment. Compensation of 0.6 million euros (previous year: 0.9 million euros) was received and recognised in net profit or loss for property, plant and equipment that was impaired, lost or removed from operation.