AIRBUS - 2019 Financial Statements

2.5 Operational Assets and Liabilities Notes to the IFRS Consolidated Financial Statements / 20. Property, Plant and Equipment Property, plant and equipment is valued at acquisition or manufacturing costs less accumulated depreciation and impairment losses. Items of property, plant and equipment are generally depreciated on a straight-line basis. The following useful lives are assumed: Buildings 10 to 50 years Site improvements 6 to 30 years Technical equipment and machinery 2 to 20 years Jigs and tools (1) 5 years Other equipment, factory and office equipment 2 to 10 years (1) If more appropriate, jigs and tools are depreciated using the number of production or similar units expected to be obtained from the tools (sum-of-the-units method). Property, plant and equipment as of 31 December 2019 and 2018 comprises the following: (In € million) 31 December 2019 31 December 2018 Gross amount Depreciation / Impairment Net book value Gross amount Depreciation / Impairment Net book value Land, leasehold improvements and buildings, including buildings on land owned by others 9,879 (5,056) 4,823 9,873 (4,692) 5,181 Technical equipment and machinery 23,144 (15,887) 7,257 21,994 (13,972) 8,022 Other equipment, factory and office equipment (1) 3,782 (2,825) 957 3,714 (2,812) 902 Construction in progress 2,714 0 2,714 2,668 0 2,668 Right-of-use assets (2) 1,793 (250) 1,543 - - - Total 41,312 (24,018) 17,294 38,249 (21,476) 16,773 (1) Includes the net book value of aircraft under operating lease (see “– Note 27: Sales Financing Transactions”). (2) The net book value of land and buildings under right-of-use assets amounts to € 1,369 million. NET BOOK VALUE (In € million) Balance at 31 Dec. 2018 IFRS 16 Impact Balance at 1 January 2019 Exchange differences Additions Changes in consoli- dation scope Reclassi- fication (1) Disposals (1) Depreciation / Impairment (2) Balance at 31 Dec. 2019 Land, leasehold improvements and buildings, including buildings on land owned by others 5,181 (269) 4,912 25 82 (52) 184 (8) (320) 4,823 Technical equipment and machinery 8,022 (64) 7,958 71 408 (88) 935 (15) (2,012) 7,257 Other equipment, factory and office equipment 902 (12) 890 7 169 (42) 170 (15) (222) 957 Construction in progress 2,668 0 2,668 24 1,332 (3) (1,315) 8 0 2,714 Right-of-use assets 0 1,697 1,697 6 201 (6) (28) (56) (271) 1,543 Total 16,773 1,352 18,125 133 2,192 (191) (54) (86) (2,825) 17,294 (1) Includes property, plant and equipment from entities disposed (see “– Note 7: Acquisitions and Disposals”). (2) Accelerated depreciation previously included in onerous contract provision has been offset with the release of the provision in the presentation of the Consolidated Statement of Cash Flows for the year ended 2019. 38 Airbus / Financial Statements 2019