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Note 19. Property, plant and equipment

Development

Property, plant and equipment developed as follows:

Development of property, plant and equipment
EUR '000

2021

Land and buildings

Technical equipment and machinery, factory and office equipment

Down payments and assets under construction

Total

Cost

 

 

 

 

As at 01/01/2021

641,066

2,975,353

762,018

4,378,437

 

 

 

 

 

Currency translation adjustment

20,411

74,888

93,090

188,389

Addition

28,877

53,793

755,6961

838,366

Disposals

(440)

(5,891)

0

(6,331)

Reclassifications

31,376

59,143

(90,519)

0

As at 31/12/2021

721,290

3,157,287

1,520,285

5,398,862

 

 

 

 

 

Accumulated depreciation

 

 

 

 

As at 01/01/2021

(313,744)

(1,973,967)

(22,668)

(2,310,379)

 

 

 

 

 

Currency translation adjustment

(9,051)

(53,668)

(1,843)

(64,562)

Depreciation

(18,959)

(133,087)

0

(152,046)

Disposals

297

5,434

0

5,730

As at 31/12/2021

(341,457)

(2,155,288)

(24,511)

(2,521,255)

 

 

 

 

 

Carrying amount as at 01/01/2021

327,323

1,001,386

739,350

2,068,059

Carrying amount as at 31/12/2021

379,833

1,001,999

1,495,774

2,877,606

1)

Additions include a decrease in advance payments of EUR 106,538 thousand.

Development of property, plant and equipment (previous year)
EUR '000

2020

Land and buildings

Technical equipment and machinery, factory and office equipment

Down payments and assets under construction

Total

Cost

 

 

 

 

As at 01/01/20202

629,761

2,919,356

287,345

3,836,462

 

 

 

 

 

Currency translation adjustment

(16,559)

(57,984)

(50,552)

(125,095)

Addition

17,425

72,345

607,0111

696,780

Disposals

(4,153)

(23,534)

(2,023)

(29,710)

Reclassifications

14,592

65,171

(79,763)

0

As at 31/12/20202

641,066

2,975,353

762,018

4,378,437

 

 

 

 

 

Accumulated depreciation

 

 

 

 

As at 01/01/20202

(306,187)

(1,908,144)

(24,968)

(2,239,298)

 

 

 

 

 

Currency translation adjustment

6,076

40,313

2,300

48,689

Depreciation

(17,772)

(129,420)

0

(147,192)

Disposals

4,139

23,284

0

27,423

As at 31/12/20202

(313,744)

(1,973,967)

(22,668)

(2,310,379)

 

 

 

 

 

Carrying amount as at 01/01/2020

323,574

1,011,211

262,378

1,597,163

Carrying amount as at 31/12/2020

327,323

1,001,386

739,350

2,068,059

1)

The additions include an increase in advance payments of EUR 243,258 thousand.

2)

The opening balances were adjusted for costs and accumulated depreciation.

Property, plant and equipment are measured at cost, including capitalized borrowing costs, less accumulated depreciation and accumulated impairment losses.

Depreciation is calculated according to the straight-line method based on the estimated useful lives. The estimated useful lives of the major asset classes are as follows:

Useful lives for property, plant and equipment
Years

Land use rights

30 to 99

Buildings

10 to 50

Fiber production lines

10 to 15

Energy production plants

10 to 25

Other machinery

4 to 20

Vehicles

4 to 20

Office equipment and other fixtures and fittings

4 to 15

IT hardware

3 to 10

All items of property, plant and equipment are tested for impairment in accordance with IAS 36 if there are any indications that these assets may be impaired (see note 11).

Operating leases as a lessor

Operating leases are in place for land and buildings with acquisition cost of EUR 38,224 thousand as at December 31, 2021 (December 31, 2020 EUR 40,401 thousand). The carrying amount of this land and buildings is EUR 8,282 thousand as at December 31, 2021 (December 31, 2020 EUR 10,305 thousand). Depreciation of EUR 692 thousand was recognized on these assets in the 2021 financial year (2020: EUR 920 thousand). For further details on rental income from operating leases see note 21.

Capitalization of borrowing costs

Borrowing costs of EUR 21,166 thousand for property, plant and equipment were capitalized in 2021 (2020: EUR 3,981 thousand). The weighted average interest rate equaled 2.23 percent (2020: 1.1 percent).

The Lenzing Group defines qualifying assets as construction projects or other assets that require at least twelve months to be ready for their intended use or sale. The capitalization entries are recorded under “financing costs” and the respective asset account. All other borrowing costs are expenses in the period incurred and reported under financial result.

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