05.5
Notes to Consolidated Financial Statements
5. PROPERTY, PLANT AND EQUIPMENT
As of December 31, 2008 and 2007, property, plant and equipment consisted of the following:
| Table 05.5.3 | ACQUISITION AND MANUFACTURING COSTS |
| $ in thousands | Balance at Jan. 1, 2008 |
Currency change |
Changes in consolidation group |
Additions | Reclassi- fications |
Disposals | Balance at Dec. 31, 2008 |
|---|---|---|---|---|---|---|---|
| Land and improvements | 39,791 |
(110) |
– |
1,182 |
(608) |
(99) |
40,156 |
| Buildings and improvements | 1,348,727 |
(33,881) |
1,370 |
205,125 |
25,939 |
(12,263) |
1,535,017 |
| Machinery and equipment | 2,191,418 |
(95,028) |
8,504 |
316,526 |
44,019 |
(113,095) |
2,352,344 |
| Machinery, equipment and rental equipment under capitalized leases |
21,533 |
353 |
85 |
2,160 |
(570) |
(843) |
22,718 |
| Construction in progress | 235,144 |
(7,163) |
– |
191,012 |
(129,126) |
(51,284) |
238,583 |
| TOTAL | 3,836,613 |
(135,829) |
9,959 |
716,005 |
(60,346) |
(177,584) |
4,188,818 |
| Table 05.5.4 | DEPRECIATION/AMORTIZATION |
| $ in thousands | Balance at Jan. 1, 2008 |
Currency change |
Changes in consolidation group |
Additions | Reclassi- fications |
Disposals | Balance at Dec. 31, 2008 |
|
|---|---|---|---|---|---|---|---|---|
| Land and improvements | – |
– |
– |
– |
– |
– |
– |
|
| Buildings and improvements | 566,455 |
(13,689) |
242 |
120,956 |
727 |
(23,918) |
650,773 |
|
| Machinery and equipment | 1,208,321 |
(53,853) |
1,142 | 243,969 |
(4,711) |
(103,885) |
1,290,983 |
|
| Machinery, equipment and rental equipment under capitalized leases |
8,044 |
(480) |
– |
3,375 |
539 |
(494) |
10,984 |
|
| Construction in progress | – |
– |
– |
– |
– |
– |
– |
|
| TOTAL | 1,782,820 |
(68,022) |
1,384 |
368,300 |
(3,445) |
(128,297) |
1,952,740 |
|
| Table 05.5.5 | NET BOOK VALUE |
| $ in thousands | Dec. 31, 2008 | Dec. 31, 2007 |
|---|---|---|
| Land and improvements | 40,156 |
39,791 |
| Buildings and improvements | 884,244 |
782,272 |
| Machinery and equipment | 1,061,361 |
983,097 |
| Machinery, equipment and rental equipment under capitalized leases | 11,734 |
13,489 |
| Construction in progress | 238,583 |
235,144 |
| TOTAL | 2,236,078 |
2,053,793 |
Depreciation expense for property, plant and equipment amounted to $368,300 and $328,595 for the years ended December 31, 2008 and 2007, respectively.
Included in property, plant and equipment as of December 31, 2008 and 2007 were $299,778 and $275,537, respectively, of peritoneal dialysis cycler machines which the Company leases to customers with end-stage renal disease on a month-to-month basis and hemodialysis machines which the Company leases to physicians under operating leases. Accumulated depreciation related to machinery, equipment and rental equipment under capital leases was $10,984 and $8,044 at December 31, 2008 and 2007, respectively.
