british american tobacco p.l.c. annual report 2008 - Notes on the accounts: 10 of 31

 
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ANNUAL REPORT 2009

10 Property, plant and equipment

 Freehold
property
£m		Leasehold
property
£m		Plant and
equipment
£m		Assets
in the
course of
construction
£m		Total
£m
1 January 2009     
Cost1,014 257 4,565 316 6,152
Accumulated depreciation and impairment(351)(95)(2,630) (3,076)
Net book value at 1 January 2009663 162 1,935 316 3,076
Differences on exchange(17)(12)(107)(11)(147)
Additions     
– separately acquired23 4 139 305 471
– acquisitions of subsidiaries 20  47 11 78
Reallocations33  247 (280) 
Depreciation(26)(11)(351) (388)
Impairment(16) (36) (52)
Disposals  (21)(5)(26)
Net reclassifications as held-for-sale  (1)(1) (2)
31 December 2009     
Cost1,101 237 4,466 336 6,140
Accumulated depreciation and impairment(421)(95)(2,614) (3,130)
Net book value at 31 December 2009680 142 1,852 336 3,010
1 January 2008     
Cost810 212 3,573 239 4,834
Accumulated depreciation and impairment(298)(71)(2,087) (2,456)
Net book value at 1 January 2008512 141 1,486 239 2,378
Differences on exchange76 27 291 27 421
Additions     
– separately acquired13 3 231 267 514
– acquisitions of subsidiaries 102  125 8 235
Reallocations31 3 191 (225) 
Depreciation(28)(11)(352) (391)
Impairment(4) (6) (10)
Disposals(20)(1)(29) (50)
Reclassifications as held-for-sale (19) (2) (21)
31 December 2008     
Cost1,014 257 4,565 316 6,152
Accumulated depreciation and impairment(351)(95)(2,630) (3,076)
Net book value at 31 December 2008663 162 1,935 316 3,076
Assets held under finance leases     
31 December 2009     
Cost 3 117  120
Accumulated depreciation and impairment (2)(87) (89)
Net book value at 31 December 2009 1 30  31
31 December 2008     
Cost 4 170  174
Accumulated depreciation and impairment (2)(100) (102)
Net book value at 31 December 2008 2 70  72

The Group’s finance lease arrangements relate principally to the lease of vending machines by the Group’s Japanese subsidiary. Assets held under finance leases are secured under finance lease obligations included in note 21.

 2009
£m		2008
£m
Cost of freehold land within freehold property on which no depreciation is provided92 91
Leasehold property comprises  
– net book value of long leasehold102 120
– net book value of short leasehold40 42
 142 162
Contracts placed for future expenditure11 36

Bank borrowings are secured by property, plant and equipment to the value of £14 million (2008: £14 million).