NOTE 10 — PROPERTY, PLANT AND EQUIPMENT

a) Summary of changes in property, plant and equipment:

	Land and buildings		Machines, equipment, and installations		Data electronic equipment		Property, plant and equipment under construction		Other		Total
Cost of the property, plant, and equipment
Balances as of January 1, 2015	9,083,765		28,434,074		755,455		4,065,627		1,296,613		43,635,534

Additions	2,150		238,060		8,194		2,000,515		75,799		2,324,718
Capitalized interest	—		—		—		213,476		—		213,476
Business Combination	30,693		10,767		503		1,784		10,853		54,600
Transfers	462,812		1,475,130		40,512		(1,999,840	)	21,386		—
Disposals	(69,777	)	(142,936	)	(20,166	)	(103,959	)	(29,769	)	(366,607	)
Impairment	(60,952	)	(1,501,293	)	—		(543,726	)	—		(2,105,971	)
Foreign exchange effect	1,394,111		4,102,898		154,768		434,999		95,603		6,182,379

Balances as of December 31, 2015	10,842,802		32,616,700		939,266		4,068,876		1,470,485		49,938,129

Additions	35,238		93,290		2,126		1,117,317		75,920		1,323,891
Capitalized interest	—		—		—		187,375		—		187,375
Transfers	584,575		2,665,898		74,804		(3,314,746	)	(10,531	)	—
Disposals	(81,256	)	(271,104	)	(60,542	)	(1,550	)	(46,888	)	(461,340	)
Effect of selling of subsidiary	(1,011,492	)	(1,726,440	)	(112,319	)	(53,630	)	(52,281	)	(2,956,162	)
Impairment (note 28)	(52,071	)	(183,788	)	(228	)	—		(3,242	)	(239,329	)
Foreign exchange effect	(834,043	)	(2,560,676	)	(81,033	)	(240,994	)	(74,219	)	(3,790,965	)

Balances as of December 31, 2016	9,483,753		30,633,880		762,074		1,762,648		1,359,244		44,001,599

Additions	2,028		124,136		1,770		687,019		58,376		873,329
Capitalized interest	—		—		—		44,260		—		44,260
Transfers	700,318		716,685		19,340		(1,440,183	)	3,840		—
Disposals	(157,625	)	(232,771	)	(12,963	)	(60,151	)	(49,962	)	(513,472	)
Loss of control by selling of subsidiary (note 3.4)	(119,928	)	(900,840	)	(16,426	)	(1,382	)	(53,129	)	(1,091,705	)
Impairment (note 28)	(10,063	)	(255,293	)	—		—		(13	)	(265,369	)
Assets held for sale (note 3.4)	(1,013,466	)	(2,734,923	)	(53,315	)	(107,677	)	(171,404	)	(4,080,785	)
Foreign exchange effect	200,681		665,730		11,158		66,146		28,745		972,460

Balances as of December 31, 2017	9,085,698		28,016,604		711,638		950,680		1,175,697		39,940,317

	Land and buildings		Machines, equipment, and installations		Data electronic equipment		Property, plant and equipment under construction	Other		Total
Accumulated depreciation
Balances as of January 1, 2015	(3,618,197	)	(16,825,332	)	(664,783	)	—	(395,433	)	(21,503,745	)

Depreciation, amortization and depletion	(323,824	)	(1,842,158	)	(48,195	)	—	(96,391	)	(2,310,568	)
Transfers	8,815		(9,071	)	360		—	(104	)	—
Disposals	26,846		175,405		15,512		—	28,844		246,607
Foreign exchange effect	(481,359	)	(2,913,862	)	(130,514	)	—	(60,362	)	(3,586,097	)

Balances as of December 31, 2015	(4,387,719	)	(21,415,018	)	(827,620	)	—	(523,446	)	(27,153,803	)

Depreciation, amortization and depletion	(334,365	)	(1,738,759	)	(44,437	)	—	(100,259	)	(2,217,820	)
Transfers	(12,015	)	(2,368	)	968		—	13,415		—
Disposals	14,696		243,429		56,466		—	31,589		346,180
Loss of control by selling of subsidiary (note 3.4)	524,209		1,515,886		95,809		—	37,965		2,173,869
Foreign exchange effect	296,523		1,792,251		69,172		—	43,920		2,201,866

Balances as of December 31, 2016	(3,898,671	)	(19,604,579	)	(649,642	)	—	(496,816	)	(24,649,708	)

Depreciation, amortization and depletion	(343,373	)	(1,361,561	)	(40,915	)	—	(61,506	)	(1,807,355	)
Transfers	(38,467	)	25,886		(400	)	—	12,981		—
Disposals	67,598		218,590		12,790		—	43,067		342,045
Loss of control by selling of subsidiary (note 3.4)	28,691		589,951		12,627		—	41,117		672,386
Assets held for sale (note 3.4)	370,727		1,989,917		54,275		—	95,350		2,510,269
Foreign exchange effect	(101,528	)	(435,040	)	(10,969	)	—	(16,675	)	(564,212	)

Balances as of December 31, 2017	(3,915,023	)	(18,576,836	)	(622,234	)	—	(382,482	)	(23,496,575	)


Net property, plant and equipment
Balances as of December 31, 2015	6,455,083		11,201,682		111,646		4,068,876	947,039		22,784,326

Balances as of December 31, 2016	5,585,082		11,029,301		112,432		1,762,648	862,428		19,351,891

Balances as of December 31, 2017	5,170,675		9,439,768		89,404		950,680	793,215		16,443,742

The average rate of capitalized interest in 2017 was 6.6% (6.6% in 2016 and 6.4% in 2015).

The following useful lives are used to calculate depreciation, amortization, and depletion:

		Useful lives of property, plant and equipment
Buildings		20 to 33 years
Machines, equipment, and installations		10 to 20 years
Furniture and fixture		5 to 10 years
Vehicles		3 to 5 years
Data electronic equipment		2.5 to 6 years

b) Guarantees — property, plant and equipment have been pledged as collateral for loans and financing in the amount of R$ 609,116 as of December 31, 2017 (R$ 632,376 and R$ 823,650 as of December 31, 2016 and 2015, respectively).

c) Impairment of property, plant and equipment — At December 31, 2017, the carrying amount of items of property, plant and equipment for which an impairment loss has been recognized up to current year is R$ 118,348 for land, buildings and construction (R$ 112,438 as of December 31, 2016), R$ 783,183 for machines, equipment and installations (R$ 642,592 as of December 31, 2016), R$ 543,726 for Property, plant and equipment under construction (R$ 543,726 as of December 31, 2016). The loss of control of Diaco S.A. has been reflected in the results above (see Note 3.4).