PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Property, plant and equipment Note 4.2 Property, plant and equipment are recognised at acquisition cost and broken down by component. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Useful life is reviewed on a regular basis. Items of property, plant and equipment are written down when their recoverable amount falls below their net carrying amount. The average depreciable lives for the major categories of property, plant and equipment are as follows:

In accordance with IAS 17, assets acquired under finance lease contracts are capitalised, and a corresponding lease debt is recognised, when the lease contract transfers substantially all the risks and rewards related to ownership of the asset to the Group. Buildings which have been subject to sale and lease back contracts are treated in a similar manner. Depreciation of property, plant and equipment is recognised within operating profit in the income statement. In accordance with the amendments to standards IAS 41 and IAS 16, vines are, since 1 July 2016, valued at acquisition cost and depreciated over their useful life. In accordance with IAS 41, agricultural produce (harvests) continues to be recognised at fair value on the balance sheet, after deducting estimated selling costs, as from the date at which it is possible to obtain a reliable assessment of price, for example by referring to an active market. Changes in fair value are recognised in profit and loss. Land on which biological assets are planted is measured in accordance with IAS 16.

Buildings

15 to 50 years 5 to 15 years

Machinery and equipment

Other property, plant and equipment

3 to 5 years

Vines

25 to 33 years

Movements in the year

Foreign currency gains and losses

Other movements 30.06.2017

30.06.2016 Acquisitions Allowances Disposals

€ million

Land

342

6

- - - - - - -

(5) (9)

0

3

346

Buildings

1,168 1,847

42 55 67

(24) (33) (19)

29 60

1,206 1,882

Machinery & equipment

(46) (29)

Other property, plant and equipment (1)

772 125

(78)

713 146

Assets in progress

152

(1)

(3)

(127)

Advance on property, plant and equipment

26

16

0

0

(3)

38

GROSS VALUE

4,279

338

(91)

(79)

(116)

4,331

Land

(34)

- - - - - -

(2)

0 7

0 9

2 3

(34)

Buildings

(488)

(38)

(507)

Machinery & equipment

(1,084)

(107)

43 27

21

11 (1,116)

Other property, plant and equipment

(287)

(39)

9

(48)

(338)

Assets in progress

-

-

-

-

-

-

DEPRECIATION/IMPAIRMENT

(1,893)

(187) (187)

78

38

(32)

(1,995)

PROPERTY, PLANT AND EQUIPMENT, NET

2,386

338

(13)

(41)

(148)

2,336

Including biological assets (1)

Movements in the year

Foreign currency gains and losses

Other movements 30.06.2018

30.06.2017 Acquisitions Allowances Disposals

€ million

Land

346

6

- - - - - - -

(1)

(8)

(1) 56 57 20

341

Buildings

1,206 1,882

25 52 62

(17) (57) (18)

(23) (52) (13)

1,247 1,883

Machinery & equipment

Other property, plant and equipment

713 146

763 233

Assets in progress

191

0

(5)

(99) (44) (10)

Advance on property, plant and equipment

38

10

-

0

5

GROSS VALUE

4,331

346

(93)

(102)

4,473

Land

(34)

- -

(3)

1

2

0 2

(34)

Buildings

(507)

(41)

14 53 17

10 29

(522)

Machinery & equipment

(1,116)

(1)

(101)

0 (1,136)

Other property, plant and equipment

(338)

0

(43)

7 0

1

(357)

Assets in progress

-

-

0

-

-

0

DEPRECIATION/IMPAIRMENT

(1,995)

(1)

(188) (188)

84 (8)

47

3 (2,049)

PROPERTY, PLANT AND EQUIPMENT, NET

2,336

345

(55)

(7)

2,424

168

PERNOD RICARD REGISTRATION DOCUMENT 2017/2018