9 Property, plant and equipment

  Land and
buildings
£m		 Plant and
equipment
£m		 Aircraft and
engines
£m		 In course of
construction
£m		 Total
£m
Cost:          
At January 1, 2006 587 1,953 212 210 2,962
Exchange adjustments (16) (51) (17) (4) (88)
Additions 4 78 44 177 303
On acquisitions of businesses — 2 — — 2
Reclassifications 28 97 — (125) —
Disposals/write-offs (16) (83) (84) (1) (184)
At January 1, 2007 587 1,996 155 257 2,995
Exchange adjustments 19 39 — 2 60
Additions 22 88 92 102 304
On acquisitions of businesses 1 — — — 1
On disposal of businesses — (4) — — (4)
Reclassifications 70 111 4 (185) —
Transferred to assets held for sale — — (12) — (12)
Disposals/write-offs — (120) (65) — (185)
At December 31, 2007 699 2,110 174 176 3,159
           
Accumulated depreciation and impairment:          
At January 1, 2006 141 1,066 106 — 1,313
Exchange adjustments (5) (33) (9) — (47)
Impairment adjustment 1 — — (10) — (10)
Provided during the year 22 139 10 — 171
Disposals/write-offs (8) (76) (54) — (138)
At January 1, 2007 150 1,096 43 — 1,289
Exchange adjustments 7 24 — — 31
Provided during the year 23 139 8 — 170
On disposal of businesses — (2) — — (2)
Transferred to assets held for sale — — (5) — (5)
Disposals/write-offs — (111) (26) — (137)
At December 31, 2007 180 1,146 20 — 1,346
Net book value at
December 31, 2007		 519 964 154 176 1,813
Net book value at
December 31, 2006		 437 900 112 257 1,706
Net book value at
January 1, 2006		 446 887 106 210 1,649
1 Impairment charge reversal of £nil (2006 £10m) relating to aircraft, as a result of improved lease terms and values provided by independent aircraft appraisers.
Property, plant and equipment includes:
  2007
£m		 2006
£m
Net book value of finance leased assets:    
Land and buildings 9 9
Plant and equipment 14 21
Assets held for use in operating leases:    
Cost 141 148
Depreciation (18) (42)
Net book value 123 106
Non-depreciable land 94 92
     
Land and buildings at net book value comprise:    
Freehold 489 406
Long leasehold 13 15
Short leasehold 17 16
  519 437
Capital expenditure commitments – contracted but not provided for 82 91
Net book value of assets held as security for liabilities — 48
Cost of fully depreciated assets 382 420

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