18

Tangible assets

The breakdown of the changes of the balance under this heading is as follows:

Changes in tangible assets (Millions of euros)

2019

2018

2017

Land and buildings

Furniture, facilities and other

Rights of use *

Land and buildings

Furniture, facilities and other

Land and buildings

Furniture, facilities and other

Cost

Opening balance

2,615

4,223

2,657

4,044

2,620

3,568

Additions due to BC** (Note 7)

91

341

1st application IFRS 16 (Note 1)

1,409

Additions

130

384

120

83

361

18

259

Disposals

(13)

(194)

(31)

(35)

(188)

(12)

(134)

Transfers ***

(138)

71

127

(90)

6

(60)

10

Closing balance

2,594

4,484

1,625

2,615

4,223

2,657

4,044

Accumulated depreciation

Opening balance

(543)

(3,052)

(547)

(3,046)

(472)

(2,687)

Additions due to BC** (Note 7)

(69)

(313)

Additions

(33)

(181)

(132)

(32)

(163)

(24)

(150)

Disposals

12

158

1

19

137

11

67

Transfers ***

17

(6)

1

17

20

8

37

Closing balance

(547)

(3,081)

(130)

(543)

(3,052)

(546)

(3,046)

Impairment allowances

Opening balance

(19)

(14)

(19)

(13)

(12)

(11)

Allowances (Note 37)

(3)

(1)

(6)

Provisions (Note 37)

5

2

2

1

3

3

Transfers ***

(1)

(1)

(2)

(5)

(5)

Amounts used

Closing balance

(18)

(12)

(19)

(14)

(20)

(13)

Own use, net

2,029

1,391

1,495

2,053

1,157

2,091

985

Cost

Opening balance

3,857

106

4,701

105

4,626

90

Additions

4

6

60

8

71

8

Disposals (Note 1.8)

(369)

(5)

(1,064)

(11)

(343)

(4)

Transfers ***

(178)

(3)

160

4

347

11

Closing balance

3,314

104

3,857

106

4,701

105

Accumulated depreciation

Opening balance

(187)

(32)

(199)

(26)

(172)

(15)

Additions

(41)

(7)

(51)

(11)

(52)

(9)

Disposals (Note 1.8)

23

1

64

5

20

1

Transfers ***

13

3

(1)

5

(3)

Closing balance

(192)

(35)

(187)

(32)

(199)

(26)

Impairment allowances

Opening balance

(932)

(1,177)

(1,097)

Allowances (Note 37)

(111)

(249)

(294)

Provisions (Note 37)

66

253

271

Transfers ***

53

(23)

(142)

Amounts used

100

264

85

Closing balance

(824)

(932)

(1,177)

Real estate investments

2,298

69

2,738

74

3,325

79

(*) Corresponds to the rights of use of land and buildings. With regard to right-of-use assets, the heading "Other financial liabilities - Liabilities associated to right-of-use assets" (see Note 22.4) includes the current value of future lease payments during the mandatory period of the contract.

(**) BC: Business combination.

(***) They mainly include the value of real estate reclassified from other balance sheet headings: from “Own use” when a branch is closed or from “Non-current assets and disposal groups classified as held for sale” when the asset is put up for rent (see Note 21).

Property, plant and equipment for own use

Property, plant and equipment for own use are allocated to the Banking Business cash-generating unit (CGU) and at year-end they do not present any indication of impairment (see Note 19). In addition, the Group carries out regular individualised valuations of certain property for own use classified as “Land and buildings”. At year-end, the available valuations do not indicate the existence of any impairment.

Selected information about property, plant and equipment for own use is presented below:

Other information about property, plant and equipment for own use (Millions of euros)

31-12-2019

31-12-2018

31-12-2017

Fully amortised assets still in use

2,263

2,478

2,498

Commitments to acquire tangible assets *

Insignificant

Insignificant

Insignificant

Assets with ownership restrictions

Insignificant

Insignificant

Insignificant

Assets covered by an insurance policy

100% **

100% **

100% **

(*) Sales made in previous years with sale and leaseback agreements include buy options that may be exercised by the Group on termination of the lease agreement at the market value of the offices at that date, to be determined where appropriate by independent experts (see Note 35).

(**) Some of the insurance policies have an excess.