Annual Report 2008
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Property, plant and equipment

 
 
land and buildings
machinery and installations
lease assets
other equipment
prepayments and construction in progress
no longer productively employed
total
 
 
 
 
 
 
 
 
Balance as of January 1, 2008:
 
 
 
 
 
 
 
Cost
2,303
3,404
88
1,746
343
13
7,897
Accumulated depreciation
(934)
(2,324)
(48)
(1,388)
(9)
(4,703)
Book value
1,369
1,080
40
358
343
4
3,194
 
 
 
 
 
 
 
 
Change in book value:
 
 
 
 
 
 
 
Capital expenditures
101
339
37
276
9
8
770
Retirements and sales
(51)
(33)
(36)
(7)
(127)
Depreciation
(90)
(332)
(13)
(197)
(632)
Write-downs and impairments
(1)
(39)
(17)
(57)
Translation differences
9
12
9
3
2
35
Changes in consolidation
133
95
25
60
313
Total changes
101
42
58
89
4
8
302
 
 
 
 
 
 
 
 
Balance as of December 31, 2008:
 
 
 
 
 
 
 
Cost
2,353
3,443
128
1,746
347
48
8,065
Accumulated depreciation
(883)
(2,321)
(30)
(1,299)
(36)
(4,569)
Book value
1,470
1,122
98
447
347
12
3,496
 

Land with a book value of EUR 185 million at December 31, 2008 (2007: EUR 148 million) is not depreciated.

The expected useful lives of property, plant and equipment are as follows:

 
Buildings
from 5 to 50 years
Machinery and installations
from 3 to 10 years
Lease assets
from 1 to 15 years
Other equipment
from 1 to 10 years
 

Capital expenditures include capitalized interest related to construction in progress amounting to EUR 3 million (2007: EUR 5 million).

This is an interactive electronic version of the Philips Annual Report 2008 and also contains certain information in summarized form. The contents of this version are qualified in their entirety by reference to the printed version of the Philips Annual Report 2008. The printed version is available as a PDF file on this website. Information about: forward-looking statements, third-party market share data, fair value information, US GAAP basis of presentation, use of non-US GAAP information, statutory financial statements and management report, revision and reclassifications and analysis of 2007 compared to 2006.
230
230
Notes to the US GAAP financial statements
Notes to the IFRS financial statements
Notes to the Company financial statements
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