10 Property, plant and equipment

Property, plant and equipment consist of the following:

Depreciation expenses were € 165 million and € 145 million for the years ending December 31, 2008 and 2007, respectively see also Note 25. Impairment losses which are included within depreciation and amortisation (shown in other operating expenses see also Note 25) were € 6 million and € 3 million for the years ending December 31, 2008 and 2007, respectively. These are related to assets within other equipment, furniture and fittings, mainly in the Group’s own-retail activities, for which contrary to expectations there will be an insufficient flow of future economic benefits.

In 2008, assets amounting to € 41 million and € 3 million in connection with the unrealised sale of disposal groups see Note 3 were transferred from “assets classified as held-for-sale” to “land and buildings” and “other equipment, furniture and fittings” within property, plant and equipment respectively.

The reclassified depreciation expenses consist of depreciation subsequently reflected see also Note 3 and the formerly reclassified depreciation which has now been taken back.

Contractual commitments for the acquisition of property, plant and equipment mainly relate to building projects in Herzogenaurach amounting to € 32 million.

For details see Statement of Movements of Tangible and Intangible Assets and Financial Assets.