12. Property, Plant and Equipment
Thousands of Russian Roubles, unless otherwise stated
| Land and buildings | Transmission networks | Equipment for electricity transformation | Other | Construction in progress | Total | |
|---|---|---|---|---|---|---|
| Deemed cost | ||||||
| At 1 January 2010 | 9,970,247 | 24,033,924 | 11,789,709 | 5,334,943 | 2,726,748 | 53,855,571 |
| Acquisitions through business combinations | 419,131 | 842,111 | 336,416 | 35,913 | 76,416 | 1,709,987 |
| Additions | 60,183 | 173,595 | 50,785 | — | 11,194,145 | 11,478,708 |
| Transfers | 2,484,866 | 2,465,660 | 2,959,677 | 1,550,594 | (9,460,797) | — |
| Disposals | (10,127) | (30,795) | (17,548) | (116,668) | (57,419) | (232,557) |
| Balance as at 31 December 2010 | 12,924,300 | 27,484,495 | 15,119,039 | 6,804,782 | 4,479,093 | 66,811,709 |
| At 1 January 2011 | 12,924,300 | 27,484,495 | 15,119,039 | 6,804,782 | 4,479,093 | 66,811,709 |
| Additions | 54,409 | 58,609 | 36,007 | 525 | 16,362,118 | 16,511,668 |
| Transfers | 3,945,016 | 4,135,024 | 3,043,145 | 2,308,930 | (13,432,115) | — |
| Disposals | (45,277) | (42,839) | (70,049) | (65,399) | (70,756) | (294,320) |
| Balance as at 31 December 2011 | 16,878,448 | 31,635,289 | 18,128,142 | 9,048,838 | 7,338,340 | 83,029,057 |
| Accumulated depreciation | ||||||
| At 1 January 2010 | (1,276,191) | (5,510,651) | (2,180,908) | (1,492,716) | — | (10,460,466) |
| Depreciation for the year | (633,243) | (2,342,980) | (876,016) | (809,255) | — | (4,661,494) |
| Disposals | 1,914 | 17,465 | 6,683 | 62,861 | — | 88,923 |
| At 31 December 2010 | (1,907,520) | (7,836,166) | (3,050,241) | (2,239,110) | — | (15,033,037) |
| At 1 January 2011 | (1,907,520) | (7,836,166) | (3,050,241) | (2,239,110) | — | (15,033,037) |
| Depreciation for the year | (988,182) | (2,746,334) | (1,074,520) | (1,092,518) | — | (5,901,554) |
| Disposals | 7,403 | 20,383 | 32,854 | 40,885 | — | 101,525 |
| At 31 December 2011 | (2,888,299) | (10,562,117) | (4,091,907) | (3,290,743) | — | (20,833,066) |
| Net book value | ||||||
| At 1 January 2010 | 8,694,056 | 18,523,273 | 9,608,801 | 3,842,227 | 2,726,748 | 43,395,105 |
| At 31 December 2010 | 11,016,780 | 19,648,329 | 12,068,798 | 4,565,672 | 4,479,093 | 51,778,672 |
| At 31 December 2011 | 13,990,149 | 21,073,172 | 14,036,235 | 5,758,095 | 7,338,340 | 62,195,991 |
As at 31 December 2011 construction in progress includes advance payments for property, plant and equipment of RUB 53,661 thousand (as at 31 December 2010: RUB 47,603 thousand).
The amount of capitalized interest in 2011 was RUB 61,930 thousand (in 2010: RUB 91,858 thousand).
Leased property, plant and equipment
The Group leases production equipment and transportation vehicles under a number of finance lease agreements. Title to the leased assets transfers to the Group at the end of each lease.
As at 31 December 2011 and 31 December 2010 the net book value of leased property, plant and equipment, accounted for as part of the Group’s property, plant and equipment, was as follows:
| Land and Buildings | Transmission networks | Equipment for electricity transformation | Other | Total | |
|---|---|---|---|---|---|
| Cost | 84,704 | 363,915 | 2,533,484 | 313,440 | 3,295,543 |
| Accumulated depreciation | (14,538) | (52,356) | (425,557) | (81,006) | (573,457) |
| Net book value at 31 December 2010 | 70,166 | 311,559 | 2,107,927 | 232,434 | 2,722,086 |
| Cost | 51,306 | 65,204 | 2,109,135 | 242,352 | 2,467,997 |
| Accumulated depreciation | (9,203) | (16,129) | (493,800) | (77,046) | (596,178) |
| Net book value at 31 December 2011 | 42,103 | 49,075 | 1,615,335 | 165,306 | 1,871,819 |
Return to Notes to the Consolidated Financial Statements for the year ended 31 December 2011