15. PROPERTY, PLANT AND EQUIPMENT

As of December 31, the acquisition and manufacturing costs as well as accumulated depreciation of property, plant and equipment consisted of the following:

ACQUISITION AND MANUFACTURING COSTS
in million €
 As of
January 1,
2007		 Foreign
currency
translation		 Changes in
entities
consolidated		 Additions Reclassifi-
cations		 Dis-
posals		 As of
December 31,
2007
 
Land and land facilities 171 -1 0 9 -9 2 168
Buildings and improvements 1,837 -81 60 170 195 73 2,108
Machinery and equipment 2,405 -94 50 297  118  178 2,598
Machinery, equipment and rental      
equipment under capital leases		 135 0 0 6  1  5  137
Construction in progress 412 -13 3 217 -314
 5
 300
Property, plant and equipment 4,960 -189 113 699  -9 263
 5,311
 
DEPRECIATION
in million € As of
January 1,
2007		 Foreign
currency
translation		 Changes in
entities
consolidated		 Additions Reclassifi-
cations		 Dis-
posals		 As of
December 31,
2007
 
Land and land facilities 0 0 0 2 0 0 2
Buildings and improvements 709 -34 1 130 0 54 752
Machinery and equipment 1,483 -47 11 242 0 163 1,526
Machinery, equipment and rental
equipment under capital leases		 55 1 0 8 0 5 59
Construction in progress 1 0 0 0 0 0 1
Property, plant and equipment 2,248 -80 12 382 0 222 2,340
 
ACQUISITION AND MANUFACTURING COSTS
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 166 -3 9 3 -1 3 171
Buildings and improvements 1,617 -66 212 90 50 66 1,837
Machinery and equipment 2,120 -82 243 229 41 146 2,405
Machinery, equipment and rental
equipment under capital leases		 135 -1 9 5 -4 9 135
Construction in progress 257 -14 13 263 -98 9 412
Property, plant and equipment 4,295 -166 486 590 -12 233 4,960
 
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.