Financial Information - Uralita

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