Accounting Policy
Property, plant and equipment is stated at historical cost less depreciation. Depreciation is calculated using the straight-line method to write off the cost of each asset to its residual value over its estimated useful life.
The useful lives used are:
Buildings | 8 - 30 years |
Leasehold and building improvements | 3 - 10 years |
Machinery | 3 - 10 years |
Furniture and fixtures | 3 - 10 years |
Computer and telecom equipment | 3 - 5 years |
Other equipment | 3 - 7 years |
Vehicles | 5 years |
The useful lives and the residual values of the assets are subject to an annual review.
Where the carrying amount of an asset is higher than its estimated recoverable amount, it is written down immediately to its recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount and are included in the operating result under the relevant heading. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the consolidated Income Statement during the financial period in which they are incurred.
Movements in property, plant and equipment are as follows:
in thousands of EUR | Notes | Buildings and leasehold improvements | Machinery and equipment | Furniture and vehicles | Total |
|---|---|---|---|---|---|
At 1 January 2019 | |||||
Cost | 616,647 | 547,639 | 387,817 | 1,552,103 | |
Accumulated depreciation and impairment | -361,510 | -395,300 | -281,231 | -1,038,041 | |
Carrying amount | 255,137 | 152,339 | 106,586 | 514,062 | |
Movements in 2019 | |||||
Acquisitions | 3,142 | 2,895 | 3,283 | 9,320 | |
Additions | 62,335 | 51,158 | 26,816 | 140,309 | |
Disposals / retirements | - 4,513 | - 2,834 | - 1,695 | - 9,042 | |
Depreciation charge | - 52,899 | - 43,072 | - 30,633 | - 126,604 | |
Impairment | - 1,172 | - 312 | - 296 | - 1,780 | |
Reclassification | - 1,848 | - 431 | 1,958 | - 321 | |
Exchange differences | 3,627 | 2,599 | 520 | 6,746 | |
At 31 December 2019 | 263,809 | 162,342 | 106,539 | 532,690 | |
At 1 January 2020 | |||||
Cost | 678,912 | 593,997 | 408,163 | 1,681,072 | |
Accumulated depreciation and impairment | -415,103 | -431,655 | -301,624 | -1,148,382 | |
Carrying amount | 263,809 | 162,342 | 106,539 | 532,690 | |
Movements in 2020 | |||||
Acquisitions | 411 | 160 | 162 | 733 | |
Additions | 38,810 | 48,880 | 19,803 | 107,493 | |
Disposals / retirements | - 3,616 | - 934 | - 1,015 | - 5,565 | |
Depreciation charge | - 52,604 | - 43,713 | - 28,421 | - 124,738 | |
Impairment | - 7,947 | - 172 | - 327 | - 8,446 | |
Reclassification | 543 | - 814 | 104 | - 167 | |
Exchange differences | - 8,456 | - 6,780 | - 3,004 | - 18,240 | |
At 31 December 2020 | 230,950 | 158,969 | 93,841 | 483,760 | |
Cost | 661,465 | 604,984 | 397,516 | 1,663,965 | |
Accumulated depreciation and impairment | - 430,515 | - 446,015 | - 303,675 | - 1,180,205 | |
Carrying amount | 230,950 | 158,969 | 93,841 | 483,760 |
During 2020, capital expenditures included investments in automated eye measurement equipment, thereby enabling its stores to quickly resume operations in compliance with COVID-19 health and safety protocols for both employees and customers.
The impairment in 2020 represents the write-down of certain leasehold improvements and furniture and fittings, mainly in the Americas & Asia segments following restructuring and in relation to the lower performing stores. This was recognized in the consolidated Income Statement within general and administrative costs.