Notes to the Financial Statements (Group)
- 6 Product revenue information
- 7 Property, plant and equipment
- 8 Goodwill
- 9 Intangible assets
- 10 Other investments
7 Property, plant and equipment
| |
Land and buildings $m |
Plant and equipment $m |
Assets in course of construction $m |
Total property, plant and equipment $m |
|---|---|---|---|---|
| Cost At 1 January 2006 |
4,490 | 8,035 | 480 | 13,005 |
| Capital expenditure | 23 | 196 | 577 | 796 |
| Additions through business combinations | – | 26 | – | 26 |
| Transfer of assets into use | 154 | 494 | (648) | – |
| Disposals and other movements | (35) | (300) | (3) | (338) |
| Exchange adjustments | 450 | 912 | 57 | 1,419 |
| At 31 December 2006 | 5,082 | 9,363 | 463 | 14,908 |
| Capital expenditure | 53 | 304 | 812 | 1,169 |
| Additions through business combinations | 302 | 122 | 176 | 600 |
| Transfer of assets into use | 151 | 470 | (621) | – |
| Disposals and other movements | (23) | (555) | (16) | (594) |
| Exchange adjustments | 254 | 470 | 28 | 752 |
| At 31 December 2007 | 5,819 | 10,174 | 842 | 16,835 |
| Capital expenditure | 49 | 239 | 825 | 1,113 |
| Transfer of assets into use | 275 | 404 | (679) | – |
| Disposals and other movements | (123) | (558) | (25) | (706) |
| Exchange adjustments | (803) | (1,725) | (100) | (2,628) |
| At 31 December 2008 | 5,217 | 8,534 | 863 | 14,614 |
| Depreciation At 1 January 2006 |
1,320 | 4,700 | – | 6,020 |
| Charge for year | 203 | 747 | – | 950 |
| Impairment | 6 | 47 | – | 53 |
| Disposals and other movements | (21) | (277) | – | (298) |
| Exchange adjustments | 148 | 582 | – | 730 |
| At 31 December 2006 | 1,656 | 5,799 | – | 7,455 |
| Charge for year | 227 | 849 | – | 1,076 |
| Impairment | 39 | 65 | 2 | 106 |
| Disposals and other movements | (3) | (498) | (1) | (502) |
| Exchange adjustments | 96 | 306 | – | 402 |
| At 31 December 2007 | 2,015 | 6,521 | 1 | 8,537 |
| Charge for year | 247 | 812 | – | 1,059 |
| Impairment | 91 | 32 | – | 123 |
| Disposals and other movements | (120) | (529) | (2) | (651) |
| Exchange adjustments | (303) | (1,192) | (2) | (1,497) |
| At 31 December 2008 | 1,930 | 5,644 | (3) | 7,571 |
| Net book value | ||||
| At 31 December 2006 | 3,426 | 3,564 | 463 | 7,453 |
| At 31 December 2007 | 3,804 | 3,653 | 841 | 8,298 |
| At 31 December 2008 | 3,287 | 2,890 | 866 | 7,043 |
Impairment charges in 2008 are attributable to the productivity initiatives in the global supply chain in France and research and development in Canada. These costs were recognised in cost of sales and research and development in the income statement.
Impairment charges in 2007 are attributable to the productivity initiatives in the global supply chain in Germany and the write-down of business support assets. These costs were recognised in cost of sales and general and administrative expenses in the income statement.
Impairment charges in 2006 are attributable to the write-down of assets in relation to the termination of NXY-059 and the write-down of assets in association with Toprol-XL, resulting from the introduction of generic competition in the US. The charges were recognised in cost of sales in the income statement.
| 2008 $m |
2007 $m |
2006 $m |
|
|---|---|---|---|
| The net book value of land and buildings comprised: Freeholds |
3,287 | 3,804 | 3,421 |
| Short leases | – | – | 5 |
| 3,287 | 3,804 | 3,426 |
