G13 Property, plant and equipment
|
Land and buildings |
Plant and machinery |
Rental fleet |
Equipment, tools, fixtures and fittings |
Construction in progress |
Total |
|---|---|---|---|---|---|---|
Acquisition cost |
|
|
|
|
|
|
At January 1, 2023 |
13,727 |
30,715 |
2,621 |
6,243 |
3,017 |
56,325 |
Additions |
316 |
871 |
910 |
434 |
2,249 |
4,781 |
Business combinations |
147 |
127 |
– |
25 |
1 |
299 |
Divestments and disposals |
–175 |
–864 |
–578 |
–347 |
–127 |
–2,091 |
Reclassifications |
591 |
1,026 |
–272 |
119 |
–1,992 |
–527 |
Translation differences for the year |
–263 |
–668 |
–64 |
–123 |
–79 |
–1,198 |
At December 31, 2023 |
14,344 |
31,207 |
2,619 |
6,350 |
3,069 |
57,590 |
Accumulated depreciations and impairments |
|
|
|
|
|
|
At January 1, 2023 |
6,604 |
22,277 |
1,294 |
4,428 |
39 |
34,642 |
Divestments and disposals |
–112 |
–819 |
–379 |
–320 |
– |
–1,631 |
Impairment losses |
5 |
101 |
20 |
0 |
– |
126 |
Reclassifications |
50 |
–95 |
–181 |
–60 |
– |
–286 |
Depreciation for the year |
483 |
1,715 |
534 |
526 |
– |
3,258 |
Translation differences for the year |
–150 |
–484 |
–34 |
–85 |
– |
–753 |
At December 31, 2023 |
6,880 |
22,694 |
1,254 |
4,489 |
39 |
35,356 |
Net carrying amount |
||||||
At December 31, 2023 |
7,463 |
8,513 |
1,365 |
1,860 |
3,030 |
22,234 |
|
|
|
|
|
|
|
Acquisition cost |
|
|
|
|
|
|
At January 1, 2024 |
14,344 |
31,206 |
2,619 |
6,350 |
3,069 |
57,590 |
Additions |
156 |
853 |
1,407 |
353 |
2,203 |
4,972 |
Business combinations |
85 |
887 |
– |
37 |
139 |
1,147 |
Divestments and disposals |
–199 |
–1,201 |
–584 |
–512 |
–124 |
–2,618 |
Reclassification |
352 |
1,367 |
–310 |
350 |
–2,286 |
–526 |
Translation differences for the year |
551 |
1,181 |
82 |
197 |
107 |
2,117 |
At December 31, 2024 |
15,289 |
34,293 |
3,215 |
6,775 |
3,108 |
62,681 |
Accumulated depreciations and impairments |
||||||
At January 1, 2024 |
6,880 |
22,694 |
1,254 |
4,489 |
39 |
35,356 |
Divestment and disposals |
–99 |
–1,134 |
–433 |
–469 |
–39 |
–2,174 |
Impairment losses |
27 |
72 |
4 |
5 |
– |
108 |
Reversal of impairment losses |
– |
–34 |
– |
– |
– |
–34 |
Reclassifications |
13 |
–7 |
–124 |
5 |
– |
–113 |
Depreciation for the year |
491 |
1,807 |
767 |
532 |
– |
3,598 |
Translation differences for the year |
262 |
816 |
36 |
146 |
– |
1,261 |
At December 31, 2024 |
7,575 |
24,214 |
1,505 |
4,708 |
– |
38,002 |
Net carrying amount |
||||||
At December 31, 2024 |
7,715 |
10,079 |
1,710 |
2,067 |
3,108 |
24,678 |
Impairment tests
Property, plant and equipment with a definite useful life are tested for impairment when an indication for impairment is identified. The tests resulted in impairment losses of SEK –108 million (–126).
Additional information
Items of property, plant and equipment totaling SEK 247 million (238) have been pledged as security for liabilities. In 2024, contractual commitments for the acquisition of property, plant and equipment amounted to SEK 460 million (561).
§ Accounting principles
Rental fleet
The fleet is balanced between underground drills, loaders and trucks followed by surface drills. The largest fleets are based in northern Europe, Canada, the US and Australia.
Depreciation of property, plant and equipment
Property, plant and equipment are depreciated over their estimated useful lives. Land is not depreciated. Depreciation is recognized on a straight-line basis (unless otherwise described) based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. The following depreciation periods are applied:
Land and buildings:
- Land indefinite useful life
- Buildings 10–50 years
- Site improvements 20 years
Plant and machinery:
- Plant and machinery 5–15 years
- Rental fleet 3 years
Equipment, tools, fixtures and fittings:
- Depreciated over the estimated useful lives
- Computer equipment is depreciated over 3–5 years using the reducing balance method
If an item of property, plant and equipment comprises components with different useful lives, each such significant component is depreciated separately. Depreciation methods and estimated residual values and useful lives are reviewed at each year-end.
Borrowing costs
The capitalization of borrowing costs relating to tangibles are mainly relevant for the construction of production buildings on a proprietary basis.
! Critical estimates and key judgments
Impairment tests of non-current assets
The Sandvik tangible assets are stated at cost less accumulated depreciation and impairment losses. The assets are depreciated over their estimated useful lives to their estimated residual values. Both the estimated useful life and the residual value are reviewed at least at each financial year-end.
The carrying amount of the Group’s non-current assets is tested for impairment whenever events or changes in circumstances indicate that the carrying amount will not be recovered. The rental fleets of Sandvik Mining and Rock Solutions are subject to special examination considering their dependence on the business climate in the mining and oil industry and the risk that rental agreements may be cancelled. The carrying amount of the rental fleets at the end of 2024 was SEK 1,710 million (1,365).