3.4 PROPERTY, PLANT AND EQUIPMENT

The changes in “property, plant and equipment” in the consolidated statement of financial position were as follows:

CHANGES IN 2017 (Millions of euros)	LAND AND BUILDINGS	PLANT AND MACHINERY	OTHER FIXTURES, TOOLS AND FURNITURE	TOTAL
Investment: Balances at 01/01/17	189	974	804	1,967
Additions	7	64	71	142
Disposals	-8	-61	-49	-119
Changes in the scope of consolidation and transfers	12	3	19	34
Exchange rate effect	-5	-32	-22	-59
Balances at 31/12/17	194	948	824	1,966
Accumulated depreciation and impairment losses at 01/01/17	-45	-669	-522	-1,235
Depreciation charge for the year	-7	-79	-58	-144
Disposals	7	48	37	92
Changes in the scope of consolidation and transfers	-3	3	-12	-12
Exchange rate effect	1	17	9	27
Impairment losses on property, plant and equipment	0	0	0	0
Balances at 31/12/17	-47	-680	-546	-1,272
Carrying amount at 31/12/17	147	268	278	694

The most significant changes in 2017 were as follows:

Additions:

Of the total additions, amounting to EUR 142 million, the most significant arose at the Services Division EUR 83 million in relation to the investments made in the expansion of the capacity of landfills, the installation of new waste transfer and treatment facilities, and the renewal of cleaning and transport equipment and luminaires associated with contracts in force. Also, in the Construction Division, acquisitions totalling EUR 49 million were made in relation to specific construction machinery.

In addition, in 2017 the changes in value of the euro against the Australian and US dollars, the Chilean peso and the pound sterling gave rise to a net reduction of EUR 59 million in the balance of property, plant and equipment.

The detail, by business segment, of the additions to property, plant and equipment is as follows:

(XLS:) Download

(Millions of euros)	2017	2016
Construction	49	60
Toll roads	9	4
Services	83	61
Other	1	16
TOTAL	142	141

Impact on cash flows: The impact on cash flows arising from additions to property, plant and equipment amounted to EUR -132 million (see Note 5.3).

Disposals or reductions:

The property, plant and equipment disposals and reductions amounted to EUR 119 million, due largely to the write-off of fully depreciated or obsolete items, although this did not have a material effect on the consolidated statement of profit or loss. Specifically, EUR 25 million were derecognised at the Construction Division and EUR 80 million at the Services Division.

Other disclosures relating to property, plant and equipment:

The property, plant and equipment not used in operations are not material with respect to the ending consolidated balances. Impairment losses on other items of property, plant and equipment total EUR 70 million (2016: EUR 68 million), associated mainly with the Services Division.

The Group has taken out insurance policies to cover the possible risks to which its property, plant and equipment are subject and the claims that might be filed against it for carrying on its business activities. These policies are considered to adequately cover the related risks.

The property, plant and equipment in the course of construction amount to EUR 58 million (2016: EUR 58 million), corresponding basically to the Services Division (EUR 44 million). The changes relate mainly to Cespa Gestión de Residuos and Broadspectrum Australia.

The changes in 2016 were as follows: