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 millions As of Jan. 1, 2010 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 31, 2010
Land and land facilities 206 7 1 8 - 1 221
Buildings and improvements 2,628 111 16 86 193 58 2,976
Machinery and equipment 3,355 178 42 326 110 215 3,796
Machinery, equipment and rental equipment under capital leases 146 3 7 20 -65 13 98
Construction in progress 340 18 12 304 -250 5 419
Property, plant and equipment 6,675 317 78 744 -12 292 7,510

€ in millions As of Jan. 1, 2010 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 31, 2010
Land and land facilities 206 7 1 8 - 1 221
Buildings and improvements 2,628 111 16 86 193 58 2,976
Machinery and equipment 3,355 178 42 326 110 215 3,796
Machinery, equipment and rental equipment under capital leases 146 3 7 20 -65 13 98
Construction in progress 340 18 12 304 -250 5 419
Property, plant and equipment 6,675 317 78 744 -12 292 7,510

DEPRECIATION


€ in millions As of Jan. 1, 2010 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 31, 2010
Land and land facilities 2 2 0 - - - 4
Buildings and improvements 1,038 48 1 173 37 51 1,246
Machinery and equipment 2,001 97 16 351 - 196 2,269
Machinery, equipment and rental equipment under capital leases 74 1 - 8 -39 8 36
Construction in progress 1 - 0 - 0 - 1
Property, plant and equipment 3,116 148 17 532 -2 255 3,556

€ in millions As of Jan. 1, 2010 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 31, 2010
Land and land facilities 2 2 0 - - - 4
Buildings and improvements 1,038 48 1 173 37 51 1,246
Machinery and equipment 2,001 97 16 351 - 196 2,269
Machinery, equipment and rental equipment under capital leases 74 1 - 8 -39 8 36
Construction in progress 1 - 0 - 0 - 1
Property, plant and equipment 3,116 148 17 532 -2 255 3,556

ACQUISITION AND MANUFACTURING COSTS


€ in millions As of Jan. 1, 2009 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 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 millions As of Jan. 1, 2009 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 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 millions As of Jan. 1, 2009 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 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 millions As of Jan. 1, 2009 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 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

CARRYING AMOUNTS

€ in millions Dec. 31, 2010 Dec. 31, 2009
Land and land facilities 217 204
Buildings and improvements 1,730 1,590
Machinery and equipment 1,527 1,354
Machinery, equipment and rental equipment under capital leases 62 72
Construction in progress 418 339
Property, plant and equipment 3,954 3,559

€ in millions Dec. 31, 2010 Dec. 31, 2009
Land and land facilities 217 204
Buildings and improvements 1,730 1,590
Machinery and equipment 1,527 1,354
Machinery, equipment and rental equipment under capital leases 62 72
Construction in progress 418 339
Property, plant and equipment 3,954 3,559

Depreciation on property, plant and equipment for the years 2010 and 2009 was €532 million and €473 million, respectively. It is allocated within cost of sales, selling, general and administrative expenses and research and development expenses, depending upon the use of the asset.

LEASING

Machinery and equipment as of December 31, 2010 and 2009 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 €312 million and €253 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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