BASF Report 2021 Consoli dated Financial Statements – Notes 242 Additions to property, plant and equipment arising from investment Disposals of property, plant and equipment mainly included the projects (excluding leases) amounted to €3,465 million in 2021. sale of the production site in Kankakee, Illinois, and the disposal of Investments were made at the following sites in particular: BASF's share in the condensate splitter in Port Arthur, Texas. Ludwigshafen, Germany; Antwerp, Belgium; Zhanjiang, China; Geismar, Louisiana; and Freeport, Texas. Material investments Transfers related mainly to the reclassification of operation-ready included engineering services and the procurement of technical assets from construction in progress to other asset categories. equipment in connection with development of the new Verbund site in Zhanjiang, China, as well as construction and expansion of Transfers to disposal groups related largely to reclassified amounts ethylene oxide and polyethylene oxide production plants in Antwerp, in connection with the divested kaolin minerals business. Belgium, and Ludwigshafen, Germany. Investments also included For more information on divestitures, see Note 3 from page 207 onward modernization measures, particularly at the Ludwigshafen site. Government grants for funding investment measures reduced asset Currency effects raised property, plant and equipment by additions by €5 million. The additions to advance payments for €798 million and resulted mainly from appreciation of the U.S. dollar right-of-use assets related only to the acquisition of land use rights and the Chinese renminbi against the euro. at the new Verbund site in Zhanjiang, China. Additions from acquisitions resulted from the acquisition of the 51% share in BASF Shanshan Battery Materials Co., Ltd. For more information on acquisitions, see Note 3 from page 207 onward In 2021, impairments of €155 million and reversals of impairments of €13 million were included in accumulated depreciation. Impairments of €49 million related to machinery and technical equipment as well as buildings at a production site in Asia in the Industrial Solutions segment. The value in use of €2 million was calculated applying a pre-tax cost of capital rate of 6.89%. This corresponds to a cost of capital rate of 9.05%. Furthermore, there was a complete write-down in the amount of €17 million due a plant closure at a production site in North America in the Materials segment, which related almost entirely to machinery and technical equipment. Impairments to construction in progress mainly related to discontinued investment projects. Reversals of impairments in the amount of €13 million resulted primarily from an increase in the fair value of plants impaired at a site in North America in 2020.