29. Tangible fixed assets | Annual Report 2014

For the year ended 31 December 2014	Land and buildings	Machinery and equipment	Means of transport	Assets under construction	Investment properties	Other	Total
Gross value of tangible fixed assets at the beginning of the period	2,521,878	2,056,907	102,115	145,435	114,605	530,807	5,471,747
Increases, of which:	326,886	83,505	30,034	290,753	106,326	55,213	892,717
take of control over subsidiaries	299,832	69,829	1,859	1,629	63,652	48,569	485,370
purchase and other changes	133	13,453	27,915	288,850	42,674	6,500	379,525
classification from non-current assets held for sale	16,405	145	128	-	-	-	16,678
other	10,516	78	132	274	-	144	11,144
Decreases, of which:	(332,879)	(235,662)	(5,388)	(8,290)	(8,8142)	(61,456)	(751,806)
disposal and sale	(35,375)	(200,178)	(1,773)	-	(8,971)	(45,713)	(292,010)
currency translation differences	(36,867)	(30,214)	(2,453)	(4,308)	-	(12,511)	(86,353)
classification to non-current assets held for sale	(260,507)	-	-	-	-	(72)	(260,579)
classification to inventories	-	-	(19,989)	-	(79,171)	-	(99,160)
other	(130)	(5,270)	(1,162)	(3,982)	-	(3,160)	(13,704)
Transfers from capital expenditures to tangible fixed assets	58,407	137,668	-	(256,851)	-	60,776	-
Gross value of tangible fixed assets at the end of the period	2,574,292	2,042,418	106,772	171,047	132,789	585,340	5,612,658
Accumulated depreciation at the beginning of the period	(887,122)	(1,559,677)	(26,112)	-	(16)	(375,503)	(2,848,430)
Increases, of which:	(177,168)	(204,553)	(15,289)	-	(3,080)	(87,685)	(487,775)
take of control over subsidiaries	(86,467)	(42,703)	(660)	-	(1,416)	(32,998)	(164,244)
depreciation for the period	(90,482)	(161,595)	(14,581)	-	(1,664)	(51,228)	(319,550)
classification from non-current assets held for sale	-	(116)	(48)	-	-	-	(164)
other	(219)	(139)	-	-	-	(3,459)	(3,817)
Decreases, of which:	97,270	221,751	14,202	-	-	53,959	387,182
disposal and sale	19,449	198,667	1,400	-	-	43,402	262,918
classification to non-current assets held for sale	70,949	-	-	-	-	72	71,021
currency translation differences	6,769	18,728	1,373	-	-	7,622	34,492
other	103	4,356	11,429	-	-	2,863	18,751
Accumulated depreciation at the end of the period	(967,020)	(1,542,479)	(27,199)	-	(3,096)	(409,229)	(2,949,023)
Impairment allowances at the beginning of the period	(7,447)	(109)	-	(4,528)	-	-	(12,084)
Increases, of which:	-	(4)	-	(3,189)	-	-	(3,193)
recognised during the period	-	(4)	-	(3,189)	-	-	(3,193)
Decreases, of which:	2,936	4	-	2,257	-	-	5,197
decrease due to write-down of assets	16	4	-	-	-	-	20
currency translation differences	2,920	-	-	2,257	-	-	5,177
Impairment allowances at the end of the period	(4,511)	(109)	-	(5,460)	-	-	(10,080)
Net carrying amount at the beginning of the period	1,627,309	497,121	76,003	140,907	114,589	155,304	2,611,233
Net carrying amount at the end of the period	1,602,761	499,830	79,573	165,587	129,693	176,111	2,653,555

note_29_01.xlsx

Off-balance sheet value of machinery and equipment used under operating lease agreements and operating leases with purchase options contracts amounted to PLN 66 705 thousand as at 31 December 2014
(as at 31 December 2013: PLN 59 032 thousand). In the years ended 31 December 2014 and 31 December 2013, respectively, there were no restrictions on the Group's right to use its tangible fixed assets as a result of pledges as security for liabilities.

As at 31 December 2014, the fair value of assets presented as ‘Investment properties’ amounted to PLN 129 693 thousand and was estimated using the comparative method (as at 31 December 2013 amounted to PLN 114 589 thousand).

For the year ended 31 December 2013	Land and buildings	Machinery and equipment	Means of transport	Assets under construction	Investment properties	Other	Total
Gross value of tangible fixed assets at the beginning of the period	2,591,395	2,204,711	85,590	269,339	793	480,999	5,632,827
Increases, of which:	7,911	26,872	41,855	342,158	114,402	3,678	536,876
purchase and other changes	7,911	26,733	41,706	341,856	114,402	3,616	536,224
other	-	139	149	302	-	62	652
Decreases, of which:	(222,916)	(405,370)	(25,330)	(19,583)	(590)	(24,167)	(697,956)
disposal and sale	(33,980)	(283,798)	(1,421)	-	(39)	(19,326)	(338,564)
currency translation differences	(3,061)	(2,463)	(207)	(394)	-	(1,019)	(7,144)
classification to non-current assets held for sale	(101,022)	(208)	(215)	(1)	(2)	(81)	(101,529)
other	(84,853)	(118,901)	(23,487)	(19,188)	(549)	(3,741)	(250,719)
Transfers from capital expenditures to tangible fixed assets	145,488	230,694	-	(446,479)	-	70,297	-
Gross value of tangible fixed assets at the end of the period	2,521,878	2,056,907	102,115	145,435	114,605	530,807	5,471,747
Accumulated depreciation at the beginning of the period	(878,618)	(1,710,128)	(24,485)	-	(555)	(354,501)	(2,968,287)
Increases, of which:	(64,111)	(196,008)	(13,046)	-	(10)	(43,108)	(316,283)
depreciation for the period	(62,435)	(194,638)	(13,027)	-	(10)	(42,527)	(312,637)
other	(1,676)	(1,370)	(19)	-	-	(581)	(3,646)
Decreases, of which:	55,607	346,459	11,419	-	549	22,106	436,140
disposal and sale	18,727	277,261	1,271	-	-	18,559	315,818
classification to non-current assets held for sale	-	137	56	-	-	-	193
currency translation differences	591	1,586	110	-	-	652	2,939
other	36,289	67,475	9,982	-	549	2,895	117,190
Accumulated depreciation at the end of the period	(887,122)	(1,559,677)	(26,112)	-	(16)	(375,503)	(2,848,430)
Impairment allowances at the beginning of the period	(7,685)	(301)	(1,283)	(4,674)	-	-	(13,943)
Increases, of which:	(331)	(687)	-	(71)	-	-	(1,089)
classification from non-current assets held for sale	(299)	-	-	-	-	-	(299)
recognised during the period	(32)	(687)	-	(71)	-	-	(790)
Decreases, of which:	569	879	1,283	217	-	-	2,948
released during the period	299	25	6	-	-	-	330
decrease due to write-down of assets	32	623	1,277	-	-	-	1,932
currency translation differences	238	-	-	145	-	-	383
other	-	231	-	72	-	-	303
Impairment allowances at the end of the period	(7,447)	(109)	-	(4,528)	-	-	(12,084)
Net carrying amount at the beginning of the period	1,705,092	494,282	59,822	264,665	238	126,498	2,650,597
Net carrying amount at the end of the period	1,627,309	497,121	76,003	140,907	114,589	155,304	2,611,233

note_29_02.xlsx

In 2014 and 2013, the Group received compensation from third parties for impairment or loss of tangible fixed assets in the amount of PLN 14 986 thousand and PLN 12 896 thousand respectively recognised in the income statement.

In the year ended 31 December 2014 a significant item is the amount of PLN 50 988 thousand, concerning a purchase of IT infrastructure (in 2013 there were no significant transactions of purchase and sale of tangible fixed assets and significant liabilities due to purchase of tangible fixed assets).

Operating lease – lessor

As at the balance sheet date the total value of future lease receivables within minimal lease payment under operating lease agreements are as follows:

Total value of future lease payments under irrevocable operating lease	31.12.2014	31.12.2013
For the period:
up to 1 year	30,021	5,624
from 1 year to 5 years	17,166	13,847
over 5 years	8,875	8,404
Total	56,062	27,875

note_29_03.xlsx

The average agreement period for operating lease agreements where the Group is a lessor is usually 36 months. The lessee bears service and insurance costs.
As at the balance sheet date the assets in lease under operating lease are as follows:

for the year ended 31 December 2014	Means of transport under operating lease	Properties under operating lease	Machinery and equipment under operating lease	Total
Gross value	39,112	4,970	867	44,949
Accumulated depreciation	(6,026)	(363)	(235)	(6,624)
Impairment allowances	-	(628)	-	(628)
Net book value	33,086	3,979	632	37,697

note_29_04.xlsx

for the year ended 31 December 2013	Means of transport under operating lease	Properties under operating lease	Machinery and equipment under operating lease	Total
Gross value	37,485	6,510	867	44,862
Accumulated depreciation	(5,436)	(525)	(18)	(5,979)
Impairment allowances	-	(1,036)	-	(1,036)
Net book value	32,049	4,949	849	37,847

note_29_05.xlsx