16. Non-current assets held for sale and liabilities associated with non-current assets held for sale

The composition of the balance under the heading “Non-current assets held for sale” in the accompanying consolidated balance sheets, broken down by the origin of the assets, is as follows:

Non-Current Assets Held-for-Sale Breakdown by type of Asset	Millions of Euros
	2011	2010	2009
From:
Property, plants and equipment	195	252	397
Buildings for own use	130	188	313
Oparating leases	65	64	84
Foreclosures and recoveries	2,191	1,513	861
Foreclosures	2,048	1,427	795
Recoveries from financial leases	143	86	66
Accrued amortization (*)	(60)	(79)	(41)
Impairment losses	(236)	(157)	(167)
Total	2,090	1,529	1,050

(*) Until classified as non-current assets held for sale

As of December 31, 2011, 2010 and 2009, there were no liabilities associated with non-current assets held for sale.

The changes in the balances under this heading in 2011, 2010 and 2009 are as follows:

2011	Millions of Euros
	Foreclosed	Recovered Assets from Operating Lease	From Own Use Assets (*)	Total
Cost-
Balance at the beginning	1,427	86	173	1,686
Additions	1,326	91	99	1,516
Contributions from merger transactions	17	3	-	19
Retirements	(670)	(31)	(140)	(841)
Transfers	(53)	29	(32)	(55)
Balance at the end	2,048	178	100	2,325
Impairment-
Balance at the beginning	122	16	20	157
Additions	384	21	4	408
Retirements	(90)	(5)	(1)	(97)
Transfers	(229)	-	(5)	(233)
Balance at the end	187	32	17	236
Total	1,861	146	83	2,090

(*) Until classified as non-current assets held for sale

2010	Millions of Euros
	Foreclosed	Recovered Assets from Operating Lease	From Own Use Assets (*)	Total
Cost-
Balance at the beginning	748	64	406	1,217
Additions	1,407	106	-	1,513
Contributions from merger transactions	-	-	-	-
Retirements	(671)	(64)	(282)	(1,017)
Transfers	(56)	(19)	49	(27)
Balance at the end	1,427	86	173	1,686
Impairment-
Balance at the beginning	124	10	33	167
Additions	198	11	12	221
Retirements	(32)	(3)	(9)	(44)
Transfers	(169)	(2)	(16)	(188)
Balance at the end	122	16	20	157
Total	1,306	70	153	1,529

(*) Until classified as non-current assets held for sale

2009	Millions of Euros
	Foreclosed	Recovered Assets from Operating Lease	From Own Use Assets (*)	Total
Cost-
Balance at the beginning	364	27	116	506
Additions	701	100	117	919
Contributions from merger transactions	-	-	-	-
Retirements	(245)	(79)	(456)	(780)
Transfers	(74)	15	629	572
Balance at the end	746	63	406	1,217
Impairment-
Balance at the beginning	49	7	6	62
Additions	105	12	17	134
Retirements	(3)	(2)	(2)	(7)
Transfers	(8)	-	(14)	(22)
Balance at the end	143	17	7	167
Total	603	47	399	1,050

(*) Until classified as non-current assets held for sale

16.1 From tangible assets for own use

The most significant changes in the balance under the heading “Non-current assets held for sale – From tangible assets for own use”, in 2011, 2010 and 2009, were a result of the following operations:

In 2009, 1,150 properties (offices and other singular buildings) belonging to the Group in Spain were reclassified to this heading at a carrying amount of €426 million; as of December 31, 2008, they were recorded under the heading “Tangible assets - Property, plants and equipment - For own use” of the consolidated balance sheets (see Note 19). A sales plan has been established for these properties.

In 2011, 2010 and 2009, the Bank sold 4, 164 and 971, properties in Spain, to investors not related to the BBVA Group for a total price of €79, €404 and €1,263 million, respectively; at market prices and without making funds available to the buyers to pay the price of these transactions.

At the same time, the Bank signed long-term operating leases with the buyers of the properties (10, 15, 20, 25 and 30 years, which were renewable under certain conditions. The amount of the annual initial income from the properties under these operating leases reached €122 million, though this income is updated annually based on the conditions established in said contracts.

In 2011, 2010 and 2009, the amounts registered under this item in the accompanying consolidated income statements under this heading were €138, €113 and €31 million, respectively (see Note 46.2).

In the sales agreements for said properties, purchase options on behalf of the Bank were included upon the termination of the respective operating lease contracts; the exercise price of the option will be determined by an independent expert on a case-by-case basis. As a result, the Bank considered these sales as firm sales and registered the profits for this item under market conditions of €67, €273 and €914 million, under the headings “Gains (losses) in non-current assets held for sale not classified as discontinued operations" in the accompanying consolidated income statements for 2011, 2010 and 2009 (see Note 52).

The current value of the future minimum payments the Bank will incur in the effective period of the operating lease contracts, as of December 31, 2011, is €112 million in 1 year, €364 million between 2 and 5 years and €652 million in more than 5 years.

16.2 From foreclosures or recoveries

As of December 31, 2011, 2010 and 2009, the balance under the heading "Non-current assets held for sale - Foreclosures or recoveries" was made up of €1,703, €1,105 and €441 million of assets for residential use, €290, €214 and €209 million of assets for tertiary use (industrial, commercial or offices) and €14, €10 and €27 million of assets for agricultural use, respectively.

As of December 31, 2011, 2010 and 2009, mean maturity of the assets through foreclosures or recoveries was less than 2 years.

In 2011, 2010 and 2009, some of the sales operations of these assets were financed by Group entities. The amount of the loans granted to the buyers of these assets over 2011, 2010 and 2009 was €163, €193 and €40 million, respectively, with a mean percentage financed of 93%, 90% and 90%, respectively, of the price of sale.

As of December 31, 2011, 2010 and 2009, the amount of gains from the sale of assets financed by Group entities (and, therefore, are not recognized consolidated income statements), reached €30, €32 and €32 million, respectively.