NOTE 9 — PROPERTY, PLANT AND EQUIPMENT
| December 31, | ||||||||||||||||||||||||||||
| 2017 | 2016 | 2015 | ||||||||||||||||||||||||||
| Gross | Accumulated depreciation |
Net | Gross | Accumulated depreciation |
Net | Net | ||||||||||||||||||||||
| (In millions of US$) | ||||||||||||||||||||||||||||
| Land | 15.2 | — | 15.2 | 17.4 | — | 17.4 | 17.1 | |||||||||||||||||||||
| Buildings | 244.0 | (129.6 | ) | 114.4 | 223.2 | (114.9 | ) | 108.3 | 122.8 | |||||||||||||||||||
| Machinery & equipment | 874.1 | (741.6 | ) | 132.5 | 982.5 | (750.5 | ) | 232.0 | 320.5 | |||||||||||||||||||
| Vehicles & vessels | 167.7 | (124.7 | ) | 43.0 | 607.4 | (289.7 | ) | 317.7 | 373.8 | |||||||||||||||||||
| Other tangible assets | 108.0 | (92.5 | ) | 15.5 | 113.5 | (92.9 | ) | 20.6 | 30.3 | |||||||||||||||||||
| Assets under constructions | 9.7 | — | 9.7 | 12.6 | — | 12.6 | 20.7 | |||||||||||||||||||||
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| Total Property, plant and equipment | 1,418.7 | (1,088.4 | ) | 330.3 | 1,956.6 | (1,248.0 | ) | 708.6 | 885.2 | |||||||||||||||||||
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Variation of the period
| December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| (In millions of US$) | ||||||||||||
| Balance at beginning of period | 708.6 | 885.2 | 1,238.2 | |||||||||
| Acquisitions | 45.4 | 57.2 | 78.5 | |||||||||
| Depreciation | (116.1 | ) | (221.6 | ) | (393.6 | ) | ||||||
| Disposals | (18.7 | ) | (4.4 | ) | (13.3 | ) | ||||||
| Change in exchange rates | 15.6 | (4.5 | ) | (18.4 | ) | |||||||
| Change in consolidation scope | (301.0 | ) | — | — | ||||||||
| Reclassification of tangible assets as “Assets held for sale” | (3.5 | ) | (0.5 | ) | (4.4 | ) | ||||||
| Other | — | (2.8 | ) | (1.8 | ) | |||||||
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| Balance at end of period | 330.3 | 708.6 | 885.2 | |||||||||
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In 2017, the “Change in consolidation scope” line item is related to the implementation of a new ownership set up for our seismic fleet (see note 2 — New ownership set up for our seismic fleet).
In 2016, the “Depreciation” line item included a US$24.4 million impairment of vessels. In 2015, the “Depreciation” line item included a US$110.0 million impairment of vessels and related equipment’s. The net book value of our owned vessels has been aligned on recoverable value assessed as fair value less cost of disposal.
Disposals of assets mainly relate to marine seismic equipment scrapped or damaged.
Reconciliation of acquisitions with the consolidated statements of cash flows
| December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| (In millions of US$) | ||||||||||||
| Acquisitions of tangible assets, excluding finance lease | 45.4 | 57.2 | 78.5 | |||||||||
| Development costs capitalized (see notes 10 and 20) | 34.1 | 34.0 | 41.5 | |||||||||
| Additions in other intangible assets, excluding non-exclusive surveys (see note 10) | 4.7 | 9.0 | 10.6 | |||||||||
| Variance of fixed assets suppliers | (3.0 | ) | 4.3 | 15.0 | ||||||||
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| Total purchases of tangible and intangible assets according to cash flow statement | 81.2 | 104.5 | 145.6 | |||||||||
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Land, buildings and geophysical equipment recorded under finance leases
| December 31, | ||||||||||||||||||||||||||||
| 2017 | 2016 | 2015 | ||||||||||||||||||||||||||
| Gross | Accumulated depreciation |
Net | Gross | Accumulated depreciation |
Net | Net | ||||||||||||||||||||||
| (In millions of US$) | ||||||||||||||||||||||||||||
| Geophysical equipment and vessels under finance leases | 5.6 | (5.1 | ) | 0.5 | 7.9 | (2.5 | ) | 5.4 | 7.3 | |||||||||||||||||||
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Land and buildings under finance leases |
92.5 | (21.9 | ) | 70.6 | 80.7 | (16.3 | ) | 64.4 | 69.7 | |||||||||||||||||||
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| Total Property, plant and equipment under finance leases | 98.1 | (27.0 | ) | 71.1 | 88.6 | (18.8 | ) | 69.8 | 77.0 | |||||||||||||||||||
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Repairs and maintenance expenses
In 2017, Repairs and maintenance expenses included in cost of operations amount to US$39.9 million due to repairs on equipment and seismic vessels. Repairs and maintenance expenses amounted to US$44.3 million in 2016 and to US$64.2 million in 2015.