Annual report and accounts 2012

Property, plant and equipment

OAO Severstal and Subsidiaries
Notes to the Consolidated Financial Statements
20. Property, plant and equipment

for the years ended December 31, 2012, 2011 and 2010
(Amounts expressed in thousands of US dollars, except as otherwise stated)

  Land and buildings Plant and machinery Other productive assets Infrastructure assets Construction-
in-progress
Total

Cost:

 

 

 

 

 

 

December 31, 2009

2,841,832

9,708,310

518,978

106,784

1,737,792

14,913,696

Reclassifications

(18,926)

163,680

(175,453)

(811)

31,510

-

Additions

-

-

-

-

1,229,687

1,229,687

Business combinations

4,621

117,088

5,453

-

6,899

134,061

Disposals

(20,215)

(99,457)

(5,833)

(5,071)

(14,609)

(145,185)

Business de-combinations

(22,409)

(42,310)

-

-

-

(64,719)

Reclassified to assets held for sale

(693,951)

(3,397,658)

(102,788)

(172)

(319,585)

(4,514,154)

Transfers from/(to) other assets

-

-

15,511

-

(26,706)

(11,195)

Transfers

117,307

330,463

26,814

5,874

(480,458)

-

Foreign exchange differences

(47,894)

(133,004)

(1,248)

(998)

(16,786)

(199,930)

December 31, 2010

2,160,365

6,647,112

281,434

105,606

2,147,744

11,342,261

Reclassifications

4,451

(16,244)

12,773

(864)

(116)

-

Additions

-

-

-

-

1,873,516

1,873,516

Disposals

(16,121)

(104,408)

(9,354)

(1,023)

(24,345)

(155,251)

Reclassified to assets held for sale

(254,136)

(352,456)

(15,006)

(96)

(196,147)

(817,841)

Transfers (to)/from other assets and liabilities

(30,694)

(206)

30,279

(868)

(124,153)

(125,642)

Transfers

417,072

1,314,725

114,945

3,323

(1,850,065)

-

Foreign exchange differences

(103,389)

(298,464)

(16,464)

(5,666)

(91,612)

(515,595)

December 31, 2011

2,177,548

7,190,059

398,607

100,412

1,734,822

11,601,448

Reclassifications

(27,282)

63,793

(31,341)

(5,170)

-

-

Additions

-

-

-

-

1,424,817

1,424,817

Disposals

(8,535)

(195,882)

(25,364)

(613)

(2,182)

(232,576)

Business de-combinations

(754)

(11,685)

(72)

-

-

(12,511)

Transfers from/(to) other assets and liabilities

3,809

22,502

6,202

346

(5,445)

27,414

Transfers

118,418

1,051,357

113,747

18,445

(1,301,967)

-

Foreign exchange differences

94,938

307,827

14,914

6,730

80,711

505,120

December 31, 2012

2,358,142

8,427,971

476,693

120,150

1,930,756

13,313,712

Of the above amounts of additions to construction-in-progress US$ 34.7 million (2011: US$ 62.1 million, 2010: US$ 42.3 million) is interest capitalized.

The Group applied the weighted average capitalization rate of 8.3% (2011: 7.3%) to determine the amount of borrowing costs eligible for capitalization for the year ended December 31, 2012.

 Land and buildingsPlant and machineryOther productive assetsInfrastructure assetsConstruction-
in-progress
Total

Depreciation and impairment:

 

 

 

 

 

 

December 31, 2009

920,184

4,077,077

261,880

63,312

105,763

5,428,216

Reclassifications

6,740

73,465

(79,064)

(1,141)

-

-

Depreciation expense

95,759

604,997

58,338

1,783

-

760,877

Disposals

(9,369)

(74,230)

(4,281)

(1,887)

(11,337)

(101,104)

Reclassified to assets held for sale

(225,023)

(1,602,879)

(100,593)

(51)

(33,411)

(1,961,957)

Business de-combinations

(15,949)

(32,337)

-

-

-

(48,286)

Transfers

1,488

3,725

140

81

(5,434)

-

Impairment/(reversal of impairment) of assets

5,298

(14,494)

33,307

(22)

17,310

41,399

Foreign exchange differences

(11,710)

(62,560)

(2,057)

1,121

(1,527)

(76,733)

December 31, 2010

767,418

2,972,764

167,670

63,196

71,364

4,042,412

Reclassifications

2,613

(12,581)

10,468

(500)

-

-

Depreciation expense

95,373

523,985

47,987

1,776

-

669,121

Disposals

(8,965)

(86,333)

(8,937)

(536)

(10,721)

(115,492)

Reclassified to assets held for sale

(90,245)

(133,912)

(7,885)

(29)

(3,061)

(235,132)

Transfers

-

4,285

82

445

(4,812)

-

Transfers from/(to) other assets and liabilities

6,840

(2,913)

(2,575)

3,447

(11,323)

(6,524)

Impairment of assets

-

-

15

391

2,226

2,632

Foreign exchange differences

(44,055)

(162,499)

(7,461)

(3,628)

(1,320)

(218,963)

December 31, 2011

728,979

3,102,796

199,364

64,562

42,353

4,138,054

Reclassifications

(10,265)

35,225

(22,394)

(2,566)

-

-

Depreciation expense

77,655

542,783

59,585

3,405

-

683,428

Disposals

(5,578)

(167,428)

(24,286)

(561)

-

(197,853)

Business de-combinations

(655)

(10,154)

(68)

-

-

(10,877)

Transfers from/(to) other assets and liabilities

4,725

19,303

(268)

(232)

(4,223)

19,305

Impairment of assets

-

28

29

1,172

4,233

5,462

Foreign exchange differences

40,191

159,948

7,375

3,906

2,062

213,482

December 31, 2012

835,052

3,682,501

219,337

69,686

44,425

4,851,001

 

 

 

 

 

 

 

Net book values:

 

 

 

 

 

 

December 31, 2010

1,392,947

3,674,348

113,764

42,410

2,076,380

7,299,849

December 31, 2011

1,448,569

4,087,263

199,243

35,850

1,692,469

7,463,394

December 31, 2012

1,523,090

4,745,470

257,356

50,464

1,886,331

8,462,711

Other productive assets include transmission equipment, transportation equipment and tools.