13 Property, plant and equipment

CHANGES IN PROPERTY, PLANT AND EQUIPMENT IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2016
€ 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, 2016	31,036	39,836	58,243	7,717	136,832
Foreign exchange differences	228	429	498	51	1,206
Changes in consolidated Group	42	26	30	1	98
Additions	742	1,843	5,150	5,025	12,760
Transfers	1,639	2,296	1,879	−5,758	55
Disposals	154	1,076	1,203	28	2,461
Balance at Dec. 31, 2016	33,534	43,353	64,595	7,008	148,490
Depreciation and impairment Balance at Jan. 1, 2016	12,789	28,148	45,645	79	86,661
Foreign exchange differences	90	305	397	5	796
Changes in consolidated Group	6	14	16	–	36
Additions to cumulative depreciation	1,000	2,918	4,707	–	8,625
Additions to cumulative impairment losses	67	143	291	8	508
Transfers	17	21	15	−46	7
Disposals	81	1,011	1,071	0	2,164
Reversal of impairment losses	–	7	0	7	13
Balance at Dec. 31, 2016	13,887	30,531	49,999	39	94,456
Carrying amount at Dec. 31, 2016	19,647	12,822	14,596	6,969	54,033
of which assets leased under finance leases Carrying amount at Dec. 31, 2016	318	9	45	–	372

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

(XLS:)

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€ million	2017	2018 – 2021	from 2022	Total

Finance lease payments	79	306	480	865
Interest component of finance lease payments	26	100	200	326
Carrying amount of liabilities	53	206	279	539

(XLS:)

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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

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	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 liabilities	51	176	252	479

For assets leased under operating leases, payments recognized in the income statement amounted to €1,449 million (previous year: €1,498 million). With respect to internally used assets, €1,302 million (previous year: €1,320 million) of this figure is attributable to minimum lease payments and €55 million (previous year: €60 million) to contingent lease payments. The payments of €92 million (previous year: €118 million) under subleases primarily relate to minimum lease payments.

Government grants of €135 million (previous year: €218 million) were deducted from the cost of property, plant and equipment and noncash benefits received amounting to €12 million (previous year: €12 million) were not capitalized as the cost of assets.

Real property liens of €916 million (previous year: €762 million) are pledged as collateral for financial liabilities related to land and buildings.

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13 Property, plant and equipment