Development
Property, plant and equipment developed as follows:
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 |
||
|
||||||
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 |
||||
|
||||||||
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:
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.