21. Property, plant and equipment

As of 30 September 2016, property, plant and equipment totalling €8,141 million (30/9/2015: €7,955 million) was recorded. The development of property, plant and equipment is shown in the following table.

 Download XLS (25KB)

€ million

Land and buildings

Other plant, business and office equipment

Assets under construction

Total

1

Including reclassifications from “assets held for sale” to property, plant and equipment

Acquisition or production costs

 

 

 

 

As of 1/10/2014

11,714

8,261

258

20,233

Currency translation

−422

−193

−37

−652

Additions to consolidation group

39

3

0

42

Additions

270 1

442

3421

1,054

Disposals

−198

−452

−13

−663

Reclassifications under IFRS 5

−1,950

−593

−7

−2,550

Transfers

175

137

−326

−14

As of 30/9 / 1/10/2015

9,629

7,605

217

17,451

Currency translation

−19

−2

0

−21

Additions to consolidation group

1

4

0

5

Additions

2901

502

345

1,136

Disposals

−190

−520

−22

−732

Reclassifications under IFRS 5

−8

0

0

−8

Transfers

128

194

−325

−2

As of 30/9/2016

9,832

7,783

215

17,830

Depreciation/amortisation/impairment losses

 

 

 

 

As of 1/10/2014

4,607

5,595

7

10,208

Currency translation

−92

−113

−1

−206

Additions, scheduled

351

531

0

882

Additions, non-scheduled

39

35

5

79

Disposals

−145

−398

0

−543

Reclassifications under IFRS 5

−487

−405

0

−892

Reversals of impairment losses

−12

−9

0

−22

Transfers

7

−16

−1

−10

As of 30/9 / 1/10/2015

4,267

5,220

9

9,496

Currency translation

−18

0

0

−18

Additions, scheduled

319

475

7

801

Additions, non-scheduled

13

39

1

53

Disposals

−161

−477

0

−637

Reclassifications under IFRS 5

−5

0

0

−5

Reversals of impairment losses

0

−6

0

−6

Transfers

−6

10

0

4

As of 30/9/2016

4,409

5,262

17

9,688

Carrying amount at 1/10/2014

7,108

2,666

251

10,025

Carrying amount at 30/9/2015

5,362

2,384

208

7,955

Carrying amount at 30/9/2016

5,424

2,520

197

8,141

The increase of €186 million primarily stems from additions to property, plant and equipment of €1,136 million, which exceeded depreciation/amortisation/impairment losses of €854 million by €282 million. An opposite effect of €95 million was produced by disposals, which caused acquisition or production costs to decline by €732 million and depreciation/amortisation/impairment losses to decrease by €637 million.

Currency effects amounted to €−3 million (2014/15: €−446 million). The substantial decline compared with the previous year is due to the limited change in the closing date exchange rate of the Russian rouble.

The increase in property, plant and equipment essentially concerned the Media-Saturn and Real segments.

Restrictions on titles in the form of liens and encumbrances for items of property, plant and equipment amounted to €30 million (30/9/2015: €89 million).

Contractual commitments for the acquisition of property, plant and equipment in the amount of €148 million (30/9/2015: €156 million) were recorded.

Leases

Assets available to METRO GROUP under the terms of finance leases were recognised in property, plant and equipment at €903 million (30/9/2015: €845 million) and at €26 million (30/9/2015: €20 million) in investment properties; they essentially relate to leased buildings.

The following disclosures apply to all leases of METRO GROUP.

Finance leases generally have terms of 15 to 25 years with options under expiration to extend them at least once for five years. The interest rates in the leases vary by market and date of signing between 1.68 and 7.00 per cent.

In addition to finance leases, METRO GROUP also signed other types of leases classified as operating leases based on their economic value Operating leases also essentially concern leased buildings and generally have an initial term of up to 15 years. The interest rates in the leases are based partly on variable and partly on fixed rents.

Payments due under finance and operating leases in subsequent periods are shown as follows:

 Download XLS (22KB)

€ million

Up to 1 year

1 to 5 years

Over 5 years

Finance leases 30/9/2015

 

 

 

Future lease payments due (nominal)

178

626

1,077

Discount

−21

−143

−505

Present value

158

483

572

Operating leases 30/9/2015

 

 

 

Future lease payments due (nominal)

1,279

3,884

3,125

 Download XLS (22KB)

€ million

Up to 1 year

1 to 5 years

Over 5 years

Finance leases 30/9/2016

 

 

 

Future lease payments due (nominal)

173

655

1,074

Discount

−13

−137

−499

Present value

159

518

574

Operating leases 30/9/2016

 

 

 

Future lease payments due (nominal)

1,251

3,754

2,947

Future payments due on finance leases contain purchase payments amounting to €28 million required for the exercise of more favourable purchase options (30/9/2015: €32 million).

The nominal value of future lease payments due to METRO GROUP from the subleasing of assets held under finance leases amounts to €262 million (30/9/2015: €264 million).

The nominal value of future lease payments due to METRO GROUP from the subleasing of assets held under operating leases amounts to €492 million (30/9/2015: €463 million).

Profit or loss for the period includes expenses from leases totalling €1,338 million (2014/15: €1,539 million, including €156 million related to discontinued operations). In addition, this item includes income from tenancy agreements totalling €264 million (2014/15: €333 million, including €48 million related to discontinued operations).

Contingent lease payments from finance leases recognised as expenses during the period amount to €4 million (2014/15: €7 million). Contingent lease payments from operating leases recognised as expenses during the period amount to €56 million (2014/15: €53 million).

Lease payments due in subsequent periods from entities outside METRO GROUP for the rental of properties that are legally owned by METRO GROUP (METRO GROUP as lessor) are shown below:

 Download XLS (21KB)

€ million

Up to 1 year

1 to 5 years

Over 5 years

Operating leases 30/9/2015

 

 

 

Future lease payments due (nominal)

56

159

121

 Download XLS (21KB)

€ million

Up to 1 year

1 to 5 years

Over 5 years

Operating leases 30/9/2016

 

 

 

Future lease payments due (nominal)

48

122

122