5. Property, Plant and Equipment
As of December 31, 2010 and 2009, property, plant and equipment consisted of the following:
Acquisition or Manufacturing Costs |
|||||||
|---|---|---|---|---|---|---|---|
in $ THOUS |
|||||||
Jan. 1, 2010 |
Currency
change |
Changes in
consolida- tion group |
Additions |
Reclassifi- cations |
Disposals |
Dec. 31, 2010 |
|
| Land and improvements | 44,837 | 1,838 | 949 | 2,826 | 55 | — | 50,505 |
| Buildings and improvements | 1,727,681 | (9,561) | 20,514 | 42,519 | 113,435 | (37,620) | 1,856,968 |
| Machinery and equipment | 2,630,925 | (42,755) | 54,254 | 313,883 | 68,969 | (131,633) | 2,893,643 |
| Machinery, equipment and rental equipment under capitalized leases | 29,557 | 250 | 55 | 1,774 | (1,081) | (2,149) | 28,406 |
| Construction in progress | 259,711 | (5,144) | 16,019 | 154,586 | (183,913) | (2,447) | 238,812 |
Property, plant and equipment |
4,692,711 | (55,372) | 91,791 | 515,588 | (2,535) | (173,849) | 5,068,334 |
Depreciation |
|||||||
|---|---|---|---|---|---|---|---|
in $ THOUS |
|||||||
Jan. 1, 2010 |
Currency
change |
Changes in
consolida- tion group |
Additions |
Reclassifi- cations |
Disposals |
Dec. 31,
2010 |
|
| Land and improvements | — | — | — | — | — | — | — |
| Buildings and improvements | 768,458 | (4,615) | 521 | 141,275 | (1,056) | (31,443) | 873,140 |
| Machinery and equipment | 1,490,673 | (33,021) | 21,057 | 288,158 | 700 | (114,631) | 1,652,936 |
| Machinery, equipment and rental equipment under capitalized leases | 14,010 | 182 | — | 3,497 | (977) | (1,746) | 14,966 |
| Construction in progress | — | — | — | — | — | — | — |
Property, plant and equipment |
2,273,141 | (37,454) | 21,578 | 432,930 | (1,333) | (147,820) | 2,541,042 |
Net Book Value |
|||
|---|---|---|---|
in $ THOUS, December 31 |
|||
2010 |
2009 |
||
| Land and improvements | 50,505 | 44,837 | |
| Buildings and improvements | 983,828 | 959,223 | |
| Machinery and equipment | 1,240,707 | 1,140,252 | |
| Machinery, equipment and rental equipment under capitalized leases | 13,440 | 15,547 | |
| Construction in progress | 238,812 | 259,711 | |
Property, plant and equipment |
2,527,292 | 2,419,570 | |
Depreciation expense for property, plant and equipment amounted to $432,930 and $396,860 for the years ended December 31, 2010 and 2009, respectively.
Included in property, plant and equipment as of December 31, 2010 and 2009 were $416,392 and $364,118, 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.
Dialysis treatment method using the patient’s peritoneum, i.e. the tissue that covers the inner surface of the abdominal cavity and the abdominal organs, as the dialyzing membrane for blood purification. A sterile dialysis solution is introduced and removed through a catheter that has been surgically implanted into the patient’s abdominal cavity. The solution absorbs toxins and excess water. Most treatments are supported by a machine, the cycler, and are administered by the patients in their home or workplace several times a day or during the night.Accumulated depreciation related to machinery, equipment and rental equipment under capital leases was $14,966 and $14,010 at December 31, 2010 and 2009, respectively.