Home Consolidated Financial Statements Notes 15. Property, plant and equipment

DEPRECIATION
in million €	As of January 1, 2006	Foreign currency translation	Changes in entities consolidated	Additions	Reclassifi- cations	Dis- posals	As of December 31, 2006
Land and land facilities	0	0	0	0	0	0	0
Buildings and improvements	598	-28	63	112	2	38	709
Machinery and equipment	1,288	-39	147	231	-6	138	1,483
Machinery, equipment and rental equipment under capital leases	52	0	3	8	-2	6	55
Construction in progress	1	0	0	0	0	0	1
Property, plant and equipment	1,939	-67	213	351	-6	182	2,248

CARRYING AMOUNTS
in million €	31. Dezember 2007	31. Dezember 2006
Land and land facilities	166	171
Buildings and improvements	1,356	1,128
Machinery and equipment	1,072	922
Machinery, equipment and rental equipment under capital leases	78	80
Construction in progress	299	411
Property, plant and equipment	2,971	2,712

Depreciation on property, plant and equipment for the years 2007 and 2006 was € 382 million and € 351 million, respectively. They are allocated within cost of sales, selling, general and administrative expenses and research and development expenses, depending upon the area in which the asset is used.

LEASING

Machinery and equipment as of December 31, 2007 and 2006 included peritoneal dialysis cycler machines which Fresenius Medical Care leases to customers with end-stage renal disease on a month-to-month basis and hemodialysis machines which Fresenius Medical Care leases to physicians under operating leases in an amount of € 187 million and € 142 million, respectively. 

To a lesser extent, property, plant and equipment are also leased for the treatment of patients by other business segments.

For details of minimum lease payments see Note 19, Debt and liabilities from capital lease obligations.