10 Property, Plant and Equipment

Property, plant and equipment consist of the following:

Property, Plant and Equipment

€ in millions

	Dec. 31 2007	Dec. 31 2006

Land and buildings	430	484
Technical equipment and machinery	115	118
Other equipment, furniture and fittings	629	567
	1,174	1,169
Less: accumulated depreciation	514	498
	660	671
Construction in progress, net	42	18
Property, plant and equipment, net	702	689

Depreciation expenses were € 145 million and € 129 million for the years ending December 31, 2007 and 2006, respectively see also Note 24 . Impairment losses which are included within depreciation and amortization (shown in other operating income and expenses see also Note 24 ) were € 3 million and € 11 million for the years ending December 31, 2007 and 2006, 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 connection with the planned sale of the GEV Grundstücksgesellschaft Herzogenaurach mbH & Co. KG see Note 3, assets amounting to € 17 million were transferred in 2006 from other current assets to property, plant and equipment (Land and buildings). For details
see Statement of Movements of Tangible and Intangible Assets and Financial Assets (Attachment I to these Notes)