James Hardie Industries plc Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Property, Plant and Equipment

Property, Plant and Equipment

12 Months Ended

Mar. 31, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

7. Property, Plant and Equipment

Property, plant and equipment consist of the following components:


(Millions of US dollars)	Land		Buildings			Machinery and Equipment			Construction In Progress¹			Total

Balance at 31 March 2010:
Cost	$	18.1	$	205.2		$	897.9		$	47.7		$	1,168.9
Accumulated depreciation		-		(57.0	)		(401.3	)		-			(458.3	)

Net book value		18.1		148.2			496.6			47.7			710.6


Changes in net book value:
Capital expenditures		0.2		4.4			58.9			(13.2	)		50.3
Retirements and sales		-		-			(0.7	)		-			(0.7	)
Depreciation		-		(9.5	)		(53.4	)		-			(62.9	)
Foreign currency translation adjustments		-		-			10.4			-			10.4

Total changes		0.2		(5.1	)		15.2			(13.2	)		(2.9	)

Balance at 31 March 2011:
Cost		18.3		209.6			966.5			34.5			1,228.9
Accumulated depreciation		-		(66.5	)		(454.7	)		-			(521.2	)

Net book value	$	18.3	$	143.1		$	511.8		$	34.5		$	707.7


Changes in net book value:
Capital expenditures		-		-			28.6			7.2			35.8
Retirements and sales		-		-			(0.3	)		-			(0.3	)
Depreciation		-		(8.8	)		(56.4	)		-			(65.2	)
Impairment of long-lived assets		-		-			(14.3	)		-			(14.3	)
Foreign currency translation adjustments		-		-			1.8			-			1.8

Total changes		-		(8.8	)		(40.6	)		7.2			(42.2	)


Balance at 31 March 2012:
Cost		18.3		209.6			982.3			41.7			1,251.9
Accumulated depreciation		-		(75.3	)		(511.1	)		-			(586.4	)

Net book value	$	18.3	$	134.3		$	471.2		$	41.7		$	665.5

¹ Construction in progress consists of plant expansions and upgrades.

Depreciation expense for the year ended 31 March 2012 was US$65.2 million. Included in property, plant and equipment are restricted assets of AICF with a net book value of US$2.3 million and US$2.4 million as of 31 March 2012 and 2011, respectively.

Impairment of Long-Lived Assets

The Company recorded an asset impairment charge of US$14.3 million during the year ended 31 March 2012 related to machinery and equipment no longer in service that was utilised to produce materials for certain of the Company’s products. The asset impairment charge was recorded in the USA and Europe Fibre Cement segment. The impaired assets were reduced to a net book value of nil, which was the estimated fair value based on a discounted cash flow analysis that considered, to the extent practicable, a market participant’s expectations and assumptions and the impaired assets’ highest and best use.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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