Annual report and accounts 2008

Notes contentsNotes to consolidated financial statements

10. Property, plant and equipment

All figures in £ millions	Land and buildings	Plant and equipment	Assets in course of construction	Total
Cost
At 1 January 2007	313	631	11	955
Exchange differences	(2)	—	—	(2)
Additions	20	62	11	93
Disposals	(24)	(65)	—	(89)
Acquisition through business combination	—	27	—	27
Disposal through business disposal	(1)	(25)	—	(26)
Reclassifications	—	6	(6)	—
Transfer to non-current assets held for sale	(8)	(14)	—	(22)
At 31 December 2007	298	622	16	936
Exchange differences	54	138	6	198
Additions	6	67	6	79
Disposals	(7)	(38)	—	(45)
Acquisition through business combination	2	29	2	33
Reclassifications	2	21	(23)	—
At 31 December 2008	355	839	7	1,201

All figures in £ millions	Land and buildings	Plant and equipment	Assets in course of construction	Total
Depreciation
At 1 January 2007	(128)	(479)	—	(607)
Exchange differences	—	1	—	1
Charge for the year	(14)	(54)	—	(68)
Disposals	11	63	—	74
Acquisition through business combination	—	(16)	—	(16)
Disposal through business disposal	—	20	—	20
Transfer to non-current assets held for sale	5	10	—	15
At 31 December 2007	(126)	(455)	—	(581)
Exchange differences	(30)	(102)	—	(132)
Charge for the year	(19)	(61)	—	(80)
Disposals	6	36	—	42
Acquisition through business combination	(1)	(26)	—	(27)
At 31 December 2008	(170)	(608)	—	(778)
Carrying amounts
At 1 January 2007	185	152	11	348
At 31 December 2007	172	167	16	355
At 31 December 2008	185	231	7	423

Depreciation expense of £12m (2007: £13m) has been included in the income statement in cost of goods sold, £6m (2007: £5m) in distribution expenses and £61m (2007: £50m) in administrative and other expenses. There was no depreciation expense relating to discontinued operations in 2008 (2007: £3m).

The Group leases certain equipment under a number of finance lease agreements. The net carrying amount of leased plant and equipment included within property, plant and equipment was £7m (2007: £6m).