7. Property, Plant and Equipment
Property, plant and equipment consist of the following
components:
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Machinery |
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Construction |
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and |
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in |
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| Cost or valuation: |
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Land |
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Buildings |
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Equipment |
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Progress 1 |
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Total |
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At 31 March 2014
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$ |
28.7 |
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$ |
212.5 |
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$ |
961.1 |
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$ |
115.4 |
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$ |
1,317.7 |
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Additions 2
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41.5 |
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30.2 |
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72.7 |
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133.5 |
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277.9 |
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Disposals 3
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- |
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(1.7) |
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(6.6) |
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- |
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(8.3) |
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Exchange differences
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- |
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(1.2) |
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(52.6) |
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- |
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(53.8) |
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At 31 March 2015
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$ |
70.2 |
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$ |
239.8 |
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$ |
974.6 |
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$ |
248.9 |
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$ |
1,533.5 |
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Additions 2
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- |
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27.0 |
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155.5 |
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(103.9) |
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78.6 |
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Disposals 4
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- |
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(0.7) |
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(65.8) |
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(1.5) |
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(68.0) |
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Exchange differences
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(0.1) |
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(0.1) |
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(1.9) |
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- |
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(2.1) |
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At 31 March 2016
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$ |
70.1 |
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$ |
266.0 |
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$ |
1,062.4 |
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$ |
143.5 |
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$ |
1,542.0 |
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Accumulated depreciation:
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At 31 March 2014
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$ |
- |
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$ |
(80.9) |
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$ |
(534.0) |
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$ |
- |
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$ |
(614.9) |
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Charge for the year
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- |
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(9.3) |
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(60.9) |
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- |
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(70.2) |
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Disposals 3
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- |
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0.8 |
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6.3 |
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- |
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7.1 |
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Exchange differences
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- |
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1.2 |
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23.4 |
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- |
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24.6 |
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At 31 March 2015
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$ |
- |
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$ |
(88.2) |
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$ |
(565.2) |
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$ |
- |
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$ |
(653.4) |
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Charge for the year
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(10.7) |
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(65.6) |
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- |
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(76.3) |
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Disposals 4
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- |
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0.5 |
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51.1 |
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- |
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51.6 |
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Exchange differences
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- |
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0.2 |
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2.9 |
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- |
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3.1 |
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At 31 March 2016
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$ |
- |
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$ |
(98.2) |
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$ |
(576.8) |
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$ |
- |
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$ |
(675.0) |
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Net book amount:
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At 31 March 2015
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$ |
70.2 |
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$ |
151.6 |
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$ |
409.4 |
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$ |
248.9 |
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$ |
880.1 |
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At 31 March 2016
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$ |
70.1 |
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$ |
167.8 |
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$ |
485.6 |
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$ |
143.5 |
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$ |
867.0 |
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| 1 |
Construction in progress is presented
net of assets transferred into service. |
| 2 |
Additions include US$3.2 million and
US$1.7 million of capitalized interest for the years ended
31 March 2016 and 2015, respectively. |
| 3 |
This includes the accounting impact
associated with the purchase of the Company’s previously
leased facility at Rosehill. |
| 4 |
The US$16.4 million net book value of
disposals include US$10.9 million of usage of replacement parts and
US$3.5 million of impairment charges on individual assets. The
remaining net book value of disposals of US$2.0 million is related
to the disposal of assets no longer in use, and do not represent a
sale of assets. |
Depreciation expense for the years ended 31 March 2016, 2015
and 2014 was US$76.3 million, US$70.2 million and US$61.3 million,
respectively.
Included in property, plant and equipment are restricted assets of
AICF with a net book value of US$1.2 million and US$1.3 million as
of 31 March 2016 and 2015, respectively.
Impairment of Long-Lived Assets
The Company performs an asset impairment review on a quarterly
basis in connection with its assessment of production capabilities
and the Company’s ability to meet market demand.
During the years ended 31 March 2016, 2015 and 2014, the
Company recorded US$3.5 million, US$3.7 million and nil of
impairment charges related to individual assets which is included
in Cost of goods sold on the consolidated statements of
operations and comprehensive income.
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