12. Property, plant and equipment

   31/12/2014  31/12/2013 
(restated data)
Land 1 061 891
Buildings and constructions 9 154 9 854
Machinery and equipment 6 924 10 880
Vehicles and other 729 759
Construction in progress 2 193 1 222
Exploration and evaluation of mineral resources assets 790 619
Assets related to development and extraction of mineral resources 1 793 679
  22 644 24 904
 

 

12.1. Changes in property, plant and equipment by class 

  Land  Buildings and constructions  Machinery and equipment  Vehicles and other  Construction in progress  Exploration and evaluation of mineral resources assets  Assets related to development and extraction of mineral resources  Total 
01/01/2014 Net carrying amount                 
Gross carrying amount 941 18 514 30 455 2 073 1 353 704 685 54 725
Accumulated depreciation and impairment allowances (50) (8 642) (19 547) (1 311) (108) (85) (6) (29 749)
Government grants  -  (18) (28) (3) (23)  -   -  (72)
  891 9 854 10 880 759 1 222 619 679 24 904
increases/(decreases), net                
Investment expenditures  -  35 114 45 2 981 171 328 3 674
Depreciation (1) (570) (1 056) (154)  -   -  (132) (1 913)
Borrowing costs  -  2 7  -  27 12  -  48
Acquisition of subsidiary  -  138 224 7 8 9 829 1 215
Impairment allowances  -  (711) (4 346) (81) (36) (5) (309) (5 488)
Reclassifications 162 395 1 088 192 (1 989) (20) 271 99
Sale (4) (1)  -  (8)  -   -   -  (13)
Liquidation  -  (21) (52) (45) (17) (8)  -  (143)
Government grants - received settled  -  (5) (43) 1 (2)  -   -  (49)
Other increases/(decreases)  -  (7) (10) 1 (3) (1)  -  (20)
Foreing exchange differences 13 45 118 12 2 13 127 330
31/12/2014 Net carrying amount  1 061 9 154 6 924 729 2 193 790 1 793 22 644
Gross carrying amount 1 113 19 159 33 435 2 153 2 376 883 2 363 61 482
Accumulated depreciation and impairment allowances (52) (9 982) (26 440) (1 422) (158) (93) (570) (38 717)
Government grants  -  (23) (71) (2) (25)  -   -  (121)
  1 061 9 154 6 924 729 2 193 790 1 793 22 644
01/01/2013 Net carrying amount                 
Gross carrying amount 970 18 446 30 615 2 175 973 162 22 53 363
Accumulated depreciation and impairment allowances (63) (8 299) (19 153) (1 343) (129)  -   -  (28 987)
Government grants  -  (13) (24) (3) (5)  -   -  (45)
  907 10 134 11 438 829 839 162 22 24 331
increases/(decreases), net                
Investment expenditures  -  29 118 42 1 905 279 10 2 383
Depreciation (1) (607) (1 239) (176)  -   -  (6) (2 029)
Borrowing costs  -  4 9  -  7 2  -  22
Acquisition of subsidiary  -  1  -  1  -  165 661 828
Impairment allowances 10 (2) (20)  -  16 (86)  -  (82)
Reclassifications (4) 464 851 116 (1 479) 101 11 60
Sale  -  (20) (1) (4)  -   -   -  (25)
Liquidation  -  (18) (33) (35) (23)  -   -  (109)
Government grants - received settled  -  (5) (4)  -  (18)  -   -  (27)
Other increases/(decreases)  -  (12) (8) (3) (3)  -   -  (26)
Foreing exchange differences (21) (114) (231) (11) (22) (4) (19) (422)
31/12/2013 Net carrying amount  891 9 854 10 880 759 1 222 619 679 24 904
 

 

In 2014 and 2013 the capitalization rate used to calculate borrowing costs amounted to 1.95% and 2.51%, respectively.

12.2  Changes in impairment allowances of property, plant and equipment

 NOTE  Land Buildings and constructions   Machinery and equipment Vehicles
and other 
Construction in progress  Exploration and evaluation of mineral resources assets  Assets related to development and extraction of mineral resources  Total 
01/01/2014   42 1 350 3 456 65 108 85  -  5 106
Recognition 9.2 1 738 4 211 84 106 13 309 5 462
Reversal 9.1 (1) (107) (13) (1) (5)  -   -  (127)
Usage    -  (6) (21) (1)  -  (8)  -  (36)
Reclassifications    -  7 42 (1) (66)  -   -  (18)
Acquisition of subsidiary  -  79 127  -  1  -   -  207
Foreign exchange differences  -  105 937 11 13 3 6 1 075
    42 2 166 8 739 157 157 93 315 11 669
increases net*    -  711 4 346 81 36 5 309 5 488
01/01/2013   54 1 402 3 575 67 129  -   -  5 227
Recognition 9.2 7 40 28 3 23 86  -  187
Reversal 9.1  -  (38) (10) (1) (2)  -   -  (51)
Usage    -  (2) (14) (3) (21)  -   -  (40)
Reclassifications   (17) 2 16 1 (16)  -   -  (14)
Foreign exchange differences (2) (54) (139) (2) (5) (1)  -  (203)
    42 1 350 3 456 65 108 85  -  5 106
increases/(decreases), net* (10) 2 20  -  (16) 86  -  82

* Increases/(decreases) net includes recognition, reversal, usage, reclassifications and acquisition of subsidiary.

 

 

12.3. Other information regarding property, plant and equipment 

 NOTE31/12/201431/12/2013
(restated data) 
The gross carrying amount of all fully depreciated property, plant and equipment still in use   3 586 3 438
The net carrying amount of temporarilly unused property, plant and equipment   8 12
The net carrying amount of withdrawn from use property, plant and equipment and not classified as held for sale   18 19
Impairment of property, plant and equipment withdrawn   (68) (56)
The net carrying amount of property, plant and equipment in finance lease 34.1 157 154

 

Should the economic useful lives of property, plant and equipment from 2013 be applied in 2014, the depreciation expense would be higher by PLN 46 million.

The Group received grants for the financing of investment projects directed at increasing energy efficiency, construction of research laboratories as well as CO2 granted free of charge for the electricity sector (i.e. derogations for the electricity).

Information regarding property, plant and equipment that were pledged for liabilities of the Group are presented in note ‎30.

12.4. Amounts recognized in the financial statements, resulting from exploration and evaluation of mineral resources

 20142013
The costs incurred in the exploration stage and evaluation of mineral resources (43) (122)
preliminary analysis and other costs associated with mineral exploration recognized in the financial result (38) (36)
impairment allowances (5) (86)
     
Assets (as at the end of the period) 790 619
Investment expenditures 171 279
     
Cash flows - operating activities 14 (9)
Cash flows - investing activities (195) (289)