17. Property, plant and equipment

As of December 31, the acquisition and manufacturing costs as well as accumulated depreciation of property, plant and equipment consisted of the following:

Acquisition and manufacturing costs


in million € As of
January 1,
2009
Foreign
currency
translation
Changes in
entities
consolidated
Additions Reclassifi-
cations
Disposals As of
December 31,
2009
Land and land facilities 199 1 4 3 1 2 206
Buildings and improvements 2,424 - 20 11 85 144 16 2,628
Machinery and equipment 3,023 8 29 283 96 84 3,355
Machinery, equipment and rental equipment under capital leases 138 1 9 - 1 1 146
Construction in progress 346 3 252 - 254 7 340
Property, plant and equipment 6,130 - 11 48 632 - 14 110 6,675

in million € As of
January 1,
2009
Foreign
currency
translation
Changes in
entities
consolidated
Additions Reclassifi-
cations
Disposals As of
December 31,
2009
Land and land facilities 199 1 4 3 1 2 206
Buildings and improvements 2,424 - 20 11 85 144 16 2,628
Machinery and equipment 3,023 8 29 283 96 84 3,355
Machinery, equipment and rental equipment under capital leases 138 1 9 - 1 1 146
Construction in progress 346 3 252 - 254 7 340
Property, plant and equipment 6,130 - 11 48 632 - 14 110 6,675

Depreciation


in million € As of
January 1,
2009
Foreign
currency
translation
Changes in
entities
consolidated
Additions Reclassifi-
cations
Disposals As of
December 31,
2009
Land and land facilities 2 2
Buildings and improvements 898 - 10 2 158 1 11 1,038
Machinery and equipment 1,744 5 12 305 - 1 64 2,001
Machinery, equipment and rental equipment under capital leases 65 10 1 74
Construction in progress 1 0 0 0 0 1
Property, plant and equipment 2,710 - 5 14 473 76 3,116

in million € As of
January 1,
2009
Foreign
currency
translation
Changes in
entities
consolidated
Additions Reclassifi-
cations
Disposals As of
December 31,
2009
Land and land facilities 2 2
Buildings and improvements 898 - 10 2 158 1 11 1,038
Machinery and equipment 1,744 5 12 305 - 1 64 2,001
Machinery, equipment and rental equipment under capital leases 65 10 1 74
Construction in progress 1 0 0 0 0 1
Property, plant and equipment 2,710 - 5 14 473 76 3,116

Acquisition and manufacturing costs


in million € As of
January 1,
2008
Foreign
currency
translation
Changes in
entities
consolidated
Additions Reclassifi-
cations
Disposals As of
December 31,
2008
Land and land facilities 168 26 6 0 1 199
Buildings and improvements 2,108 19 60 201 51 15 2,424
Machinery and equipment 2,598 - 19 129 321 95 101 3,023
Machinery, equipment and rental equipment under capital leases 137 1 4 0 4 138
Construction in progress 300 - 2 22 217 - 189 2 346
Property, plant and equipment 5,311 - 1 237 749 - 43 123 6,130

in million € As of
January 1,
2008
Foreign
currency
translation
Changes in
entities
consolidated
Additions Reclassifi-
cations
Disposals As of
December 31,
2008
Land and land facilities 168 26 6 0 1 199
Buildings and improvements 2,108 19 60 201 51 15 2,424
Machinery and equipment 2,598 - 19 129 321 95 101 3,023
Machinery, equipment and rental equipment under capital leases 137 1 4 0 4 138
Construction in progress 300 - 2 22 217 - 189 2 346
Property, plant and equipment 5,311 - 1 237 749 - 43 123 6,130

Depreciation


in million € As of
January 1,
2008
Foreign
currency
translation
Changes in
entities
consolidated
Additions Reclassifi-
cations
Disposals As of
December 31,
2008
Land and land facilities 2 0 2
Buildings and improvements 752 11 9 136 10 898
Machinery and equipment 1,526 - 11 44 276 - 2 89 1,744
Machinery, equipment and rental equipment under capital leases 59 0 9 3 65
Construction in progress 1 0 0 1
Property, plant and equipment 2,340 53 421 - 2 102 2,710

in million € As of
January 1,
2008
Foreign
currency
translation
Changes in
entities
consolidated
Additions Reclassifi-
cations
Disposals As of
December 31,
2008
Land and land facilities 2 0 2
Buildings and improvements 752 11 9 136 10 898
Machinery and equipment 1,526 - 11 44 276 - 2 89 1,744
Machinery, equipment and rental equipment under capital leases 59 0 9 3 65
Construction in progress 1 0 0 1
Property, plant and equipment 2,340 53 421 - 2 102 2,710

Carrying amounts


in million € December 31,
2009
December 31,
2008
Land and land facilities 204 197
Buildings and improvements 1,590 1,526
Machinery and equipment 1,354 1,279
Machinery, equipment and rental equipment under capital leases 72 73
Construction in progress 339 345
Property, plant and equipment 3,559 3,420

in million € December 31,
2009
December 31,
2008
Land and land facilities 204 197
Buildings and improvements 1,590 1,526
Machinery and equipment 1,354 1,279
Machinery, equipment and rental equipment under capital leases 72 73
Construction in progress 339 345
Property, plant and equipment 3,559 3,420

Depreciation on property, plant and equipment for the years 2009 and 2008 was € 473 million and € 421 million, respectively. It is allocated within cost of sales, selling, general and administrative expenses and research and development expenses, depending upon the area in which the asset is used.

Leasing

Machinery and equipment as of December 31, 2009 and 2008 included peritoneal dialysis cycler machines which Fresenius Medical Care leases to customers with end-stage renal disease on a month-to-month basis and hemodialysis machines which Fresenius Medical Care leases to physicians under operating leases in an amount of € 253 million and € 215 million, respectively.

To a lesser extent, property, plant and equipment are also leased for the treatment of patients by other business segments.

For details of minimum lease payments see note 21, Debt and capital lease obligations.

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