8.- PROPERTY, PLANT AND EQUIPMENT

The breakdown and movements under this heading during 2017 and 2016 were as follows (in thousands of euros):

	Balance at 31.12.15	Change in consolidation scope	Exchange differences	Additions	Retirements	Transfers	Balance at 31.12.16	Changes in scope of consolidation(see note 2.5.4)	Exchange differences	Additions	Retirements	Transfers to other items	Balance at 31.12.2017
COST
Land and buildings	1.701.564	17.210	(2.215)	22.699	(49.831)	6.429	1.695.856	5.007	(17.063)	4.575	(17.993)	(68.825)	1.601.557
Plant and machinery	785.887	7.421	(1.492)	48.046	(52.083)	7.490	795.269	7.028	(7.659)	24.290	(25.632)	(1.994)	791.302
Other plant, fixtures and furniture	469.748	1.966	(898)	30.914	(46.559)	2.816	457.987	-	(3.968)	21.558	(35.214)	317	440.680
Other fixed assets	735	-	-	612	(548)	(5)	794	(47)	(87)	20	(215)	(994)	(529)
Property, plant and equipment in progress	38.240	-	(334)	16.335	(11.760)	(16.768)	25.713	(162)	(866)	12.904	(2.293)	(7.844)	27.452
	2.996.174	26.597	(4.939)	118.606	(160.781)	(38)	2.975.619	11.826	(29.643)	63.347	(81.347)	(79.340)	2.860.462
ACCUMULATED AMORTISATION
Buildings	(315.879)	(2.942)	1.311	(24.399)	15.897	(740)	(326.752)	-	5.059	(31.542)	4.604	5.789	(342.842)
Plant and machinery	(520.757)	(5.034)	565	(41.845)	35.342	(1.006)	(532.735)	(338)	4.691	(40.629)	21.334	2.345	(545.332)
Other plant, fixtures and furniture	(366.278)	(1.808)	308	(26.258)	43.596	(304)	(350.744)	-	3.228	(29.015)	32.281	2.123	(342.127)
Other fixed assets	(666)	-	-	(55)	314	(27)	(434)	47	91	(91)	485	(88)	10
	(1.203.580)	(9.784)	2.184	(92.557)	95.149	(2.077)	(1.210.665)	(291)	13.069	(101.277)	58.704	10.169	(1.230.291)
Impairment	(68.428)	-	7	(13.221)	18.283	(167)	(63.526)	-	34	(2.730)	18.998	217	(47.007)
NET BOOK VALUE	1.724.166						1.701.428						1.583.164

The net additions for the year in the column “Changes in the scope of consolidation” come from the purchase of the companies WILAN ANDER, S.L. and WILAN HUEL, S.L. (see Note 2.5.4) and the exit of the company Hesperia Enterprises de Venezuela, S.A.

In 2016, the net additions in the year in the column “Changes in the scope of consolidation” come from the purchase of 47% of the company Palacio de la Merced, S.A. (see Note 2.5.4).

The main additions and reductions in 2017 are due to the repositioning plan carried out by the Group, with refurbishments in all Business Units. The main refurbishments have been carried out in hotels such as NH Les Corts, NH Constanza, NH Calderón (Spain), NH Cavalieri, NH President, NH Milano Touring (Italy) NH Hamburg Norge, NH Berlin Mitte, NH Duesseldorf City, NH Duesseldorf City Nord (Germany), NH Collection Eindhoven, NH Jan Tabak, NH Amsterdam Noord (Benelux) and NH Mexico City (Latin America).

Transfers to other items correspond mainly to the NH Barbizon Palace hotel classified as a non-current asset held for sale during 2017 (see Note 14) amounting to 66,621 thousand euros.

At 31 December 2017, there were property, plant and equipment elements with a net book value of 275 million euros (344 million euros in 2016) to guarantee several mortgage loans (see Note 15).

The breakdown of impairment by country is as follows (in thousands of euros):

	2017	2016
Spain	10.834	14.415
Italy	32.182	46.463
Germany	2.392	1.675
Benelux	997	-
Others	602	973
Total impairment	47.007	63.526

Impairment amounting to 2,730 thousand euros has been recognised for certain assets due to the worsening of future expectations of cash flows for different reasons, including the opening of competitors’ hotels or the loss of an important customer (13,221 thousand euros in 2016), and 12,743 thousand euros registered under “Net Profits/(Losses) from asset impairment” of the 2017 consolidated comprehensive profit and loss statement have been reversed.

During the year, some tangible and intangible assets, have been retired, replaced or disposed of to third parties outside the Group, generating positive net capital gains for them amounting to 30,148 thousand euros, recorded under “Gain/(loss) on the disposal of non-current assets” in the consolidated comprehensive profit and loss statement for 2017.

The Group has taken out insurance policies to cover any possible risks to which the different elements of its property, plant and equipment are subject, and to cover any possible claims that may be filed against it in the course of its activities. It is understood that such policies sufficiently cover the risks to which the Group is exposed.

At 31 December 2017, firm purchase undertakings amounted to 51.5 million euros. These investments will be made between 2018 and 2020 (46.4 million euros in 2016).

The recoverable amount of the CGUs subject to impairment or reversal (not the entire portfolio of the Group) is as follows:

	2017
Millions Euros	Rcoverable amount
CGU A	76
CGU B	39,3
CGU C	34,3
CGU D	24,9
CGU E	24,1
CGU F	15,8
CGU G	13,1
CGU H	10
CGU I	10
CGU J	9,3
Top Ten	256,8
Spain	83
Italy	54,5
Benelux	21,1
Germany	19,8
Other countries	(5,1)
Other CGUs	173,3
Total	430,1