(20) Property, plant and equipment
Accounting and measurement policies
Recognition and initial measurement
Monetary grants related to assets are deducted from the respective carrying amount.
Advance payments are disclosed together with the assets under construction.
Subsequent measurement
Subsequent measurement is at amortized cost.
Property, plant and equipment is depreciated using the straight-line method over the useful life of the asset concerned, and the corresponding expenses are allocated to the respective functional costs. Depreciation of property, plant and equipment is primarily based on the following useful lives:
|
|
Useful life |
|---|---|---|
Production buildings |
|
No more than 40 years |
Administration buildings |
|
No more than 40 years |
Plant and machinery |
|
6 to 25 years |
Operating and office equipment, other facilities |
|
3 to 20 years |
The useful lives of the assets are reviewed regularly and adjusted if necessary.
An impairment test is performed if there are indications of impairment. External and internal information is used in this context. In the event of impairment, an impairment loss is recognized under other operating expenses. Impairment losses are reversed up to amortized cost and reported in other operating income if the original reasons for impairment no longer apply.
Significant discretionary decisions and sources of estimation uncertainty
Determination of depreciation
Assumptions and estimates are required in determining the appropriate useful life and the expected residual value in order to calculate the amount of depreciation on property, plant and equipment. This applies in particular to the determination of the underlying remaining useful life. In making these estimates, the Group considers the useful lives of the property, plant and equipment derived from past experience, among other things.
Identification of a need to recognize impairment loss and reverse impairment loss
Discretionary decisions are required in the identification of objective evidence of impairment as well as in identifying the need to reverse impairment of property, plant and equipment.
€ million |
|
Land, land rights and buildings |
|
Plant and machinery |
|
Other facilities, operating and office equipment |
|
Construction in progress |
|
Total |
|---|---|---|---|---|---|---|---|---|---|---|
Cost as of Jan. 1, 2024 |
|
6,326 |
|
6,625 |
|
1,946 |
|
3,045 |
|
17,943 |
Additions due to business combinations |
|
3 |
|
3 |
|
2 |
|
2 |
|
10 |
Other additions |
|
325 |
|
36 |
|
52 |
|
1,677 |
|
2,091 |
Disposals due to divestments/Reclassification to assets held for sale |
|
-185 |
|
-449 |
|
-61 |
|
-36 |
|
-731 |
Other disposals |
|
-126 |
|
-179 |
|
-122 |
|
-15 |
|
-442 |
Transfers |
|
1,008 |
|
958 |
|
226 |
|
-2,211 |
|
-20 |
Currency translation difference |
|
128 |
|
83 |
|
12 |
|
38 |
|
261 |
Cost as of Dec. 31, 2024 |
|
7,480 |
|
7,077 |
|
2,054 |
|
2,500 |
|
19,112 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment losses as of Jan. 1, 2024 |
|
-2,820 |
|
-4,584 |
|
-1,454 |
|
-29 |
|
-8,887 |
Depreciation |
|
-365 |
|
-433 |
|
-184 |
|
– |
|
-982 |
Impairment losses |
|
-34 |
|
-21 |
|
-2 |
|
-28 |
|
-85 |
Reversals of impairment losses |
|
– |
|
– |
|
– |
|
– |
|
– |
Disposals due to divestments/Reclassification to assets held for sale |
|
132 |
|
387 |
|
49 |
|
12 |
|
580 |
Other disposals |
|
95 |
|
169 |
|
119 |
|
6 |
|
389 |
Transfers |
|
3 |
|
17 |
|
-16 |
|
-4 |
|
– |
Currency translation difference |
|
-47 |
|
-46 |
|
-10 |
|
– |
|
-103 |
Accumulated depreciation and impairment losses as of Dec. 31, 2024 |
|
-3,036 |
|
-4,510 |
|
-1,499 |
|
-42 |
|
-9,087 |
|
|
|
|
|
|
|
|
|
|
|
Net carrying amounts as of Dec. 31, 2024 |
|
4,445 |
|
2,567 |
|
556 |
|
2,457 |
|
10,025 |
|
|
|
|
|
|
|
|
|
|
|
Cost as of Jan. 1, 2025 |
|
7,480 |
|
7,077 |
|
2,054 |
|
2,500 |
|
19,112 |
Additions due to business combinations |
|
6 |
|
3 |
|
3 |
|
1 |
|
13 |
Other additions |
|
83 |
|
42 |
|
57 |
|
1,470 |
|
1,651 |
Disposals due to divestments/Reclassification to/from assets held for sale |
|
28 |
|
44 |
|
9 |
|
7 |
|
88 |
Other disposals |
|
-192 |
|
-192 |
|
-93 |
|
-10 |
|
-488 |
Transfers |
|
328 |
|
719 |
|
149 |
|
-1,199 |
|
-3 |
Currency translation difference |
|
-376 |
|
-297 |
|
-63 |
|
-99 |
|
-835 |
Cost as of Dec. 31, 2025 |
|
7,357 |
|
7,397 |
|
2,116 |
|
2,668 |
|
19,537 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment losses as of Jan. 1, 2025 |
|
-3,036 |
|
-4,510 |
|
-1,499 |
|
-42 |
|
-9,087 |
Depreciation |
|
-355 |
|
-458 |
|
-188 |
|
– |
|
-1,001 |
Impairment losses |
|
-37 |
|
-83 |
|
-5 |
|
-41 |
|
-166 |
Reversals of impairment losses |
|
– |
|
– |
|
– |
|
– |
|
– |
Disposals due to divestments/Reclassification to/from assets held for sale |
|
-28 |
|
-41 |
|
-7 |
|
-5 |
|
-82 |
Other disposals |
|
139 |
|
175 |
|
87 |
|
7 |
|
407 |
Transfers |
|
-1 |
|
-10 |
|
1 |
|
12 |
|
3 |
Currency translation difference |
|
129 |
|
153 |
|
45 |
|
– |
|
327 |
Accumulated depreciation and impairment losses as of Dec. 31, 2025 |
|
-3,189 |
|
-4,773 |
|
-1,566 |
|
-70 |
|
-9,598 |
|
|
|
|
|
|
|
|
|
|
|
Net carrying amounts as of Dec. 31, 2025 |
|
4,168 |
|
2,623 |
|
550 |
|
2,598 |
|
9,940 |
In the previous year, disposals due to divestments/Reclassification to assets held for sale were related to the divestment of the Surface Solutions business unit and the Martillac operations site, France (see Note (6) Acquisitions and divestments). Due to the refinement in the scope of the assets to be divested in connection with the sale of the Surface Solutions business unit, property, plant and equipment classified as assets held for sale in 2024 were reclassified in fiscal 2025. The affected assets were, for the most part, fully depreciated.
The individual additions to construction in progress in fiscal 2025 with an investment volume of more than € 50 million are presented below:
Business sector |
|
Investment project |
|
Country |
|---|---|---|---|---|
Life Science |
|
Membrane Factory |
|
Ireland |
Electronics |
|
Capacity expansion for Semiconductor Solutions |
|
Taiwan |
Life Science |
|
Bioprocessing Production Center |
|
Korea |
Healthcare |
|
Research Center |
|
Germany |
Electronics |
|
Expansion of a research lab |
|
USA |
Life Science |
|
Research Center |
|
Germany |
Monetary government grants amounted to € 35 million in fiscal 2025 (2024: € 78 million) and, as in the previous year, they related to a variety of different items. They comprised grants related to assets as well as grants related to income. Some of the aforementioned grants are tied to the recruitment of an agreed number of employees at the respective sites. The Group expects to satisfy the conditions for receiving the grants.
Impairment losses of € 166 million (2024: € 85 million) resulted from a variety of different items and were predominantly related to the termination of production activities and projects. Of this amount, € 93 million was attributable to the Life Science business sector, € 49 million to the Electronics business sector and € 23 million to the Healthcare business sector. In the previous year, the impairment losses included a mid-double-digit million euro amount attributable to the Martillac operations site in France.