RUBIS - 2019 Universal Registration Document

8 FINANCIAL STATEMENTS - 2019 Consolidated financial statements and notes

Note 4. Notes to the balance sheet

4.1 PROPERTY, PLANT AND EQUIPMENT AND RIGHT-OF-USE ASSETS

4.1.1

PROPERTY, PLANT AND EQUIPMENT

ACCOUNTING POLICIES The gross amount of property, plant and equipment corresponds to its acquisition cost. Maintenance and repair costs are recorded as expenses as soon as they are incurred, except for those, posted as fixed assets, incurred to extend the useful life of the property. Depreciation is calculated according to the straight-line method for the estimated useful life of the various categories of fixed assets, as follows:

Duration

Buildings

10 to 40 years 10 to 20 years 5 to 30 years

Technical facilities Equipment and tools

Transportation equipment

4 to 5 years

Facilities and fixtures

10 years

Office equipment and furniture

5 to 10 years

Borrowing costs are included in fixed asset costs when significant. Tangible fixed assets are given an impairment test whenever events or changes in circumstances indicate that their book values may not be recoverable.

Gross value (in thousands of euros)

Translation differences

Change in scope Acquisitions

12/31/2019

12/31/2018

Decreases Reclassifications (1)

Other property, plant and equipment Prepayments and down payments on property, plant and equipment

283,485

3,547

19,941

(7,865)

(14,921)

1,988

286,175

1,999

317

(613) (270)

(315)

(28)

1,360

Assets in progress

155,499

3,230

129,688 57,744 13,537 221,227

(155,506) (642,591) (342,568)

(587)

132,054

Machinery and equipment and tools

2,161,958

19,422 29,624 55,823

(42,430) (5,480) (56,658)

12,116 (4,513)

1,566,219

Land and buildings

839,633

530,233

TOTAL

3,442,574

(1,155,901)

8,976 2,516,041

Depreciation (in thousands of euros)

Translation differences

Change in scope (2,362) (9,661) (9,884) (21,907) 33,916

12/31/2019

12/31/2018

Increases

Decreases Reclassifications (1)

Other property, plant and equipment

(149,276)

(16,072) (91,394) (21,317)

7,087

14,536 352,155 147,473 514,164 (641,737)

(301)

(146,388)

Facilities and equipment

(1,334,686)

39,403

(6,820)

(1,051,003)

Land and buildings

(370,507)

3,064

432

(250,739)

TOTAL

(1,854,469) 1,588,105

(128,783)

49,554 (7,104)

(6,689)

(1,448,130)

NET VALUE

92,444

2,287 1,067,911

(1) Of which reclassification into group of assets held for sale, for a net amount of €645 million (see note 3.3).

The main changes in scope correspond as follows: • consolidation of the KenolKobil Group in the gross amount of €52.1 million and €18.7 million in depreciation; • acquisition of the LPG businesses in the Azores and Madeira in the gross amount of €3.7 million and €3.2 million in depreciation.

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