13 Property, plant and equipment

CHANGES IN PROPERTY, PLANT AND EQUIPMENT IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2017
€ million	Land, land rights and buildings, including buildings on third-party land	Technical equipment and machinery	Other equipment, operating and office equipment	Payments on account and assets under construction	Total

Cost Balance at Jan. 1, 2017	33,534	43,353	64,595	7,008	148,490
Foreign exchange differences	−440	−824	−1,056	−152	−2,473
Changes in consolidated Group	−303	−71	−117	−11	−501
Additions	630	1,355	5,056	5,474	12,516
Transfers	1,063	2,509	1,829	−5,411	−11
Disposals	149	873	1,399	31	2,452
Balance at Dec. 31, 2017	34,335	45,450	68,909	6,876	155,569
Depreciation and impairment Balance at Jan. 1, 2017	13,887	30,531	49,999	39	94,456
Foreign exchange differences	−153	−560	−790	−5	−1,508
Changes in consolidated Group	−117	−62	−80	–	−259
Additions to cumulative depreciation	1,058	3,211	5,152	–	9,421
Additions to cumulative impairment losses	3	−9	254	55	303
Transfers	14	−16	−1	0	−3
Disposals	71	807	1,183	7	2,068
Reversal of impairment losses	0	2	0	13	15
Balance at Dec. 31, 2017	14,621	32,286	53,352	69	100,327
Carrying amount at Dec. 31, 2017	19,714	13,164	15,557	6,807	55,243
of which assets leased under finance leases Carrying amount at Dec. 31, 2017	286	6	46	–	339

Future finance lease payments due, and their present values, are shown in the following table:

(XLS:)

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€ million	2018	2019 – 2022	from 2023	Total

Finance lease payments	67	263	390	721
Interest component of finance lease payments	16	87	139	242
Carrying amount of liabilites	51	176	252	479

(XLS:)

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CHANGES IN PROPERTY, PLANT AND EQUIPMENT IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2018
€ million	Land, land rights and buildings, including buildings on third-party land	Technical equipment and machinery	Other equipment, operating and office equipment	Payments on account and assets under construction	Total

Cost Balance at Jan. 1, 2018	34,335	45,450	68,909	6,876	155,569
Foreign exchange differences	−98	−216	−79	−59	−452
Changes in consolidated Group	168	9	6	6	189
Additions	597	1,103	4,960	6,452	13,112
Transfers	858	1,753	2,048	−4,703	−43
Disposals	117	1,424	1,495	35	3,071
Balance at Dec. 31, 2018	35,743	46,676	74,350	8,537	165,305
Depreciation and impairment Balance at Jan. 1, 2018	14,621	32,286	53,352	69	100,327
Foreign exchange differences	−39	−130	−59	−5	−232
Changes in consolidated Group	10	7	1	–	18
Additions to cumulative depreciation	1,062	3,222	5,593	–	9,876
Additions to cumulative impairment losses	22	21	273	258	574
Transfers	−5	47	−25	−18	−1
Disposals	83	1,370	1,318	0	2,770
Reversal of impairment losses	36	26	14	41	117
Balance at Dec. 31, 2018	15,552	34,057	57,803	263	107,675
Carrying amount at Dec. 31, 2018	20,191	12,618	16,546	8,274	57,630
of which assets leased under finance leases Carrying amount at Dec. 31, 2018	267	5	41	0	314

Options to purchase buildings and plant leased under the terms of finance leases exist in most cases, and are also expected to be exercised.

Future finance lease payments due, and their present values, are shown in the following table:

(XLS:)

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€ million	2019	2020 – 2023	from 2024	Total

Finance lease payments	68	231	360	659
Interest component of finance lease payments	18	73	119	210
Carrying amount of liabilites	51	158	241	449

For assets leased under operating leases, payments recognized in the income statement amounted to €1,690 million (previous year: €1,449 million). With respect to internally used assets, €1,544 million (previous year: €1,302 million) of this figure is attributable to minimum lease payments and €13 million (previous year: €55 million) to contingent lease payments. The payments of €133 million (previous year: €92 million) under subleases primarily relate to minimum lease payments.

Government grants of €207 million (previous year: €135 million) were deducted from the cost of property, plant and equipment and noncash benefits received amounting to €0 million (previous year: €12 million) were not capitalized as the cost of assets.

In connection with land and buildings, real property liens of €1,062 million (previous year: €916 million) are pledged as collateral for partial retirement obligations, financial liabilities and other liabilities.

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13 Property, plant and equipment