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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| (Millions of US dollars) |
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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 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 3
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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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Additions 2
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1.3 |
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2.3 |
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27.8 |
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81.8 |
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113.2 |
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Transfers
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1.9 |
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23.1 |
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112.3 |
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(137.3) |
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- |
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Disposals 3
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- |
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(1.4) |
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(55.5) |
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(0.5) |
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(57.4) |
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Other 4
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- |
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(12.5) |
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- |
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6.4 |
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(6.1) |
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Exchange differences
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(0.4) |
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(0.8) |
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(2.4) |
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(0.1) |
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(3.7) |
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Adjustment 5
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(3.4) |
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67.8 |
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31.1 |
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(37.2) |
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58.3 |
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At 31 March 2017
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$ |
69.5 |
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$ |
344.5 |
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$ |
1,175.7 |
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$ |
56.6 |
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$ |
1,646.3 |
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Accumulated depreciation:
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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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- |
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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 3
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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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Charge for the year
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- |
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(10.2) |
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(70.1) |
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- |
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(80.3) |
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Disposals 3
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- |
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1.3 |
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41.1 |
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- |
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42.4 |
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Other 4
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- |
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1.6 |
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- |
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- |
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1.6 |
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Exchange differences
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- |
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0.3 |
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2.0 |
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- |
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2.3 |
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Adjustment 5
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- |
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(22.8) |
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(35.5) |
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- |
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(58.3) |
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At 31 March 2017
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$ |
- |
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$ |
(128.0) |
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$ |
(639.3) |
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$ |
- |
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$ |
(767.3) |
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Net book amount:
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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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At 31 March 2017
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$ |
69.5 |
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$ |
216.5 |
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$ |
536.4 |
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$ |
56.6 |
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$ |
879.0 |
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| 1 |
Construction in progress is presented
net of assets transferred into service. |
| 2 |
Additions include US$2.0 million
and US$3.2 million of capitalized interest for the years ended
31 March 2017 and 2016, respectively. |
| 3 |
The US$15.0 million net book
value of disposals in fiscal year 2017 includes
US$13.1 million of usage of replacement parts and
US$0.5 million of impairment charges on individual assets. The
remaining net book value of disposals of US$1.4 million is
related to the disposal of assets no longer in use, and do not
represent a sale of assets. |
| 4 |
Other includes the transfer of the
Fontana building to Prepaid and other current assets on the
consolidated balance sheet. The Fontana building met the held for
sale criteria as of 31 March 2017 and has a net book value of
US$4.5 million. |
| 5 |
The adjustments correct immaterial
errors identified by management during the current year in
classification in prior periods whereby certain amounts were
misclassified by asset category and certain fully depreciated items
were excluded from the balances. The correction had no impact on
the consolidated balance sheets, statements of operations and
comprehensive income, and cash flows for any of the periods
presented. |
Depreciation expense for the years ended 31 March 2017, 2016
and 2015 was US$80.3 million, US$76.3 million and
US$70.2 million, 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 2017, 2016 and 2015, the
Company recorded US$0.5 million, US$3.5 million and
US$3.7 million 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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