Property, plant and equipment

Property, plant and equipment used in the business operations for more than one year are measured at acquisition or construction cost less scheduled depreciation. Such assets also include spare parts and maintenance equipment used for more than one period. Technical minimum stocks are recognized as components of the respective technical equipment and machinery. These stocks are quantities of materials that contain metals and are necessary to establish and ensure a production facility’s functionality for its intended use. Minimum stocks are not subject to scheduled depreciation.

Construction costs include all direct costs. Borrowing costs that can be directly allocated to the purchase, construction or production of a qualifying asset are capitalized. Borrowing costs of € 125 thousand were capitalized in the fiscal year reported with a respective financing cost rate of 2.7 % (previous year: € 0 thousand). Scheduled depreciation is recorded using the straight-line method. The depreciation periods used correspond to the expected economic useful lives of the assets, as applicable within the Group. The following main useful lives are applied:

  T 029
   
Buildings 25 to 40 years
Site installations 10 to 25 years
Technical equipment and machinery 5 to 20 years
Technical minimum stock unlimited useful life
Factory and office equipment 3 to 20 years

General overhauls or maintenance measures resulting in the replacement of components are recognized as an asset if it is probable that future economic benefits will flow to the Group and the costs can be measured reliably.