Chapters
Annual Report 2020

11. Property, Plant and Equipment

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

6

- 52,899

- 43,072

- 30,633

- 126,604

Impairment

6

- 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

6

- 52,604

- 43,713

- 28,421

- 124,738

Impairment

6

- 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.