Financial Information - Uralita
Financial Information - Uralita
Financial Information - Uralita
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FINANCIAL INFORMATION ANNUAL REPORT 2006<br />
The main additions relate to the construction of<br />
new production plants and the introduction of<br />
new manufacturing technologies, principally in<br />
the Insulation Business. In addition, in 2006 the<br />
construction of new manufacturing plants for the<br />
Gypsum Business was included.<br />
Property, plant and equipment located outside<br />
Spain are all used for the operations of the<br />
Group’s consolidated foreign subsidiaries. The<br />
carrying amounts of these assets at 31<br />
December 2006 and 2005 were €235,674 and<br />
€227,537 thousand, respectively.<br />
All items of property, plant and equipment are<br />
for the Group’s own use and none are granted<br />
under operating leases.<br />
At 31 December 2006, the Company has no<br />
material contractual commitments to acquire<br />
property, plant and equipment.<br />
Fully depreciated property, plant and equipment<br />
items in use at 31 December 2006 and 2005<br />
amounted to €196,852 thousand and €101,500<br />
thousand, respectively. The amounts of<br />
temporarily idle items of property, plant and<br />
equipment and derecognized items of property,<br />
plant and equipment at 31 December 2006 and<br />
2005 are not material.<br />
The Group has taken out insurance policies to<br />
cover possible risks to which various items of<br />
property, plant and equipment are subject and<br />
possible lawsuits which may be filed against the<br />
Group during the ordinary course of its business.<br />
It considers these policies sufficiently cover<br />
these risks.<br />
The net carrying amounts at 31 December 2006<br />
and 2005 of assets acquired under finance<br />
leases are €4,773 and €5,407 thousand,<br />
respectively.<br />
Impairment losses<br />
The market value of certain cash-generating<br />
units has been impaired mainly due to surplus<br />
capacity, which has had a material impact on<br />
the future economic benefits expected from their<br />
use and led to a reorganization of production<br />
capacity of the related cash-generating units.<br />
This process is in the final stages.<br />
The Group assessed the impact of this through<br />
the preparation of projections and businesses<br />
plans based on similar criteria to that used for<br />
the impairment tests of goodwill (see Note 5).<br />
It also recognized the negative impact on equity<br />
at 31 December 2005 and 2004 of the<br />
impairment loss of certain cash-generating units<br />
disposed of in 2006 and 2005. The estimation of<br />
the recoverable amount was made based on the<br />
sale amount less costs to sell.<br />
There are no restrictions to the ownership of the<br />
items of property, plant and equipment at 31<br />
December 2006.<br />
The movements that gave rise to the provision<br />
for impairment in 2006 and 2005 were the<br />
following:<br />
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