a) Composition of property and equipment by class
| R$ thousand | ||||
| Annual rate | Cost | Accumulated depreciation | Net | |
| Buildings | 4% | 2,153,407 | (483,266) | 1,670,141 |
| Land | - | 982,720 | - | 982,720 |
| Installations, properties and equipment for use | 10% | 5,450,939 | (2,667,455) | 2,783,484 |
| Security and communication systems | 10% | 349,228 | (213,879) | 135,349 |
| Data processing systems | 20% | 3,950,625 | (2,329,028) | 1,621,597 |
| Transportation systems | 20% | 86,705 | (48,246) | 38,459 |
| Financial leasing of data processing systems | 20% | 3,431,868 | (2,231,143) | 1,200,725 |
| Balance on December 31, 2017 |
| 16,405,492 | (7,973,017) | 8,432,475 |
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| Buildings | 4% | 2,153,351 | (454,426) | 1,698,925 |
| Land | - | 1,027,535 | - | 1,027,535 |
| Installations, properties and equipment for use | 10% | 5,187,160 | (2,314,715) | 2,872,445 |
| Security and communication systems | 10% | 325,835 | (192,974) | 132,861 |
| Data processing systems | 20% | 3,504,229 | (2,067,981) | 1,436,248 |
| Transportation systems | 20% | 86,639 | (40,034) | 46,605 |
| Financial leasing of data processing systems | 20% | 3,229,513 | (2,047,016) | 1,182,497 |
| Balance on December 31, 2016 |
| 15,514,262 | (7,117,146) | 8,397,116 |
Depreciation charges in 2017 amounted to R$ 1,237,328 thousand (2016 - R$ 1,141,636 thousand).
We enter into finance lease agreements as a lessee for data processing equipment, which are recorded as leased equipment in property and equipment. According to this accounting method, both the asset and the obligation are recognized in the consolidated financial statements and the depreciation of the asset is calculated based on the same depreciation policy as for similar assets. See Note 38 for disclosure of the obligation.
b) Change in property and equipment by class
| R$ thousand | |||||||
| Buildings | Land | Installations, properties and equipment for use | Security and communications systems | Data processing systems (1) | Transportation systems | Total | |
| Balance on December 31, 2016 | 1,698,925 | 1,027,535 | 2,872,445 | 132,861 | 2,618,745 | 46,605 | 8,397,116 |
| Additions | 117,888 | 41,777 | 754,606 | 31,134 | 947,314 | 4,926 | 1,897,645 |
| Write-offs | (53,151) | (86,592) | (323,217) | (2,540) | (86,469) | (100) | (552,069) |
| Impairment | (73,568) | - | (502) | (1,836) | (3,288) | - | (79,194) |
| Depreciation | (28,840) | - | (521,663) | (24,270) | (649,583) | (12,972) | (1,237,328) |
| Transfer | 8,887 | - | 1,815 | - | (4,397) | - | 6,305 |
| Balance on December 31, 2017 | 1,670,141 | 982,720 | 2,783,484 | 135,349 | 2,822,322 | 38,459 | 8,432,475 |
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| Balance on December 31, 2015 | 582,602 | 448,020 | 2,788,330 | 59,086 | 1,556,160 | 70,237 | 5,504,435 |
| Balance originating from an acquired institution (2) | 752,619 | 586,971 | 320,949 | 77,196 | 60,065 | - | 1,797,800 |
| Additions | 81,809 | 897 | 974,089 | 22,721 | 1,696,318 | 3,487 | 2,779,321 |
| Write-offs | (30,341) | (8,353) | (402,316) | (4,804) | (62,386) | (1,627) | (509,827) |
| Impairment | - | - | - | - | (20,543) | (12,434) | (32,977) |
| Depreciation | (30,179) | - | (466,192) | (21,338) | (610,869) | (13,058) | (1,141,636) |
| Transfer | 342,415 | - | (342,415) | - | - | - | - |
| Balance on December 31, 2016 | 1,698,925 | 1,027,535 | 2,872,445 | 132,861 | 2,618,745 | 46,605 | 8,397,116 |
(1) Includes financial lease of data processing systems; and
(2) HSBC Brasil.