Annual Report and Accounts 2006
|
Notes to the Financial Statements
16. Property, plant and equipment
(a) Analysis of movements
| Land and buildings £m |
Plant and equipment £m |
Assets in course of construction £m |
Total £m |
|
|---|---|---|---|---|
| Cost | ||||
| At 29 December 2003 | 558 | 2,253 | 43 | 2,854 |
| Exchange rate adjustments | (1) | (37) | (3) | (41) |
| Additions | 9 | 120 | 141 | 270 |
| Additions on acquisition of a subsidiary | 2 | – | – | 2 |
| Transfers on completion | 6 | 87 | (93) | – |
| Disposals | (12) | (198) | (1) | (211) |
| At 2 January 2005 | 562 | 2,225 | 87 | 2,874 |
| Exchange rate adjustments | 43 | 88 | 12 | 143 |
| Additions | 14 | 95 | 181 | 290 |
| Transfers on completion | 31 | 67 | (98) | – |
| Transfers to assets held for sale | (7) | – | (3) | (10) |
| Transfers to discontinued operations | (63) | (113) | (4) | (180) |
| Disposals | (14) | (119) | (2) | (135) |
| At 1 January 2006 | 566 | 2,243 | 173 | 2,982 |
| Exchange rate adjustments | (45) | (143) | (17) | (205) |
| Additions | 21 | 131 | 220 | 372 |
| Additions on acquisition of a subsidiary | 114 | 142 | 20 | 276 |
| Transfers on completion | 25 | 127 | (152) | – |
| Transfer on completion to software intangible assets | – | (27) | – | (27) |
| Transfers to assets held for sale | (1) | (38) | – | (39) |
| Disposals | (32) | (184) | (9) | (225) |
| At 31 December 2006 | 648 | 2,251 | 235 | 3,134 |
| Land and buildings £m |
Plant and equipment £m |
Assets in course of construction £m |
Total £m |
|
|---|---|---|---|---|
| Accumulated depreciation | ||||
| At 29 December 2003 | (83) | (1,324) | – | (1,407) |
| Exchange rate adjustments | 1 | 23 | – | 24 |
| Depreciation for the year | (17) | (178) | – | (195) |
| Disposals | 1 | 167 | – | 168 |
| At 2 January 2005 | (98) | (1,312) | – | (1,410) |
| Exchange rate adjustments | (15) | (52) | – | (67) |
| Depreciation for the year | (18) | (170) | – | (188) |
| Transfers to assets held for sale | 4 | – | – | 4 |
| Transfers to discontinued operations | 5 | 22 | – | 27 |
| Disposals | 1 | 97 | – | 98 |
| At 1 January 2006 | (121) | (1,415) | – | (1,536) |
| Exchange rate adjustments | 9 | 76 | – | 85 |
| Depreciation for the year | (20) | (186) | – | (206) |
| Transfers to assets held for sale | – | 25 | – | 25 |
| Disposals | 2 | 160 | – | 162 |
| At 31 December 2006 | (130) | (1.340) | – | (1,470) |
| Carrying amount | ||||
| At 2 January 2005 | 464 | 913 | 87 | 1,464 |
| At 1 January 2006 | 445 | 828 | 173 | 1,446 |
| At 31 December 2006 | 518 | 911 | 235 | 1,664 |
The value of land not depreciated is £134 million (2005: £112 million; 2004: £112 million).
(b) Finance leases
The net book value of plant and equipment held under finance leases is made up as follows:
| 2006 £m |
2005 £m |
2004 £m |
|
|---|---|---|---|
| Cost | 223 | 228 | 227 |
| Less: accumulated depreciation | (179) | (172) | (155) |
| 44 | 56 | 72 |
(c) Analysis of land and buildings
| 2006 £m |
2005 £m |
2004 £m |
|
|---|---|---|---|
| Analysis of net book value | |||
| Freehold | 470 | 394 | 431 |
| Long leasehold | 21 | 33 | 19 |
| Short leasehold | 27 | 18 | 14 |
| 518 | 445 | 464 |
(d) Capital commitments
Commitments for capital expenditure contracted for but not provided in the Group financial statements at the end of the year for the continuing group were £11 million (2005: £14 million; 2004: £15 million).