ar11-lr-final
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Notes to and forming part of the Financial Statements – continued<br />
For the 52 WEEK period ended 31 July 2011<br />
25. Property, Plant and Equipment<br />
GROUP 2011 2010<br />
$000 $000<br />
Available for sale land and buildings 5,744 –<br />
Property, plant and equipment 291,922 272,346<br />
Net carrying amount 297,666 272,346<br />
(a) Available for sale land and buildings<br />
At balance date the Group was in negotiations with a potential purchaser of one of the Group’s Distribution Centre sites following an<br />
unsolicited purchase offer.<br />
(b) Movement in property, plant and equipment<br />
Reconciliations of the carrying amounts of property, plant and equipment at the beginning and end of the year are set out below:<br />
GROUP<br />
NotE<br />
FREEHOLD<br />
LAND<br />
STORE<br />
FITTINGS<br />
AND<br />
EQUIPMENT<br />
FREEHOLD<br />
COMPUTER<br />
WORK IN<br />
BUILDINGS<br />
HARDWARE VEHICLES PROGRESS TOTAL<br />
$000 $000 $000 $000 $000 $000 $000<br />
For the 52 week period ended 31 July 2011<br />
Opening carrying amount 76,331 103,687 69,230 15,736 1,118 6,244 272,346<br />
Additions 5 12,045 11,797 30,754 4,129 291 2,948 61,964<br />
Disposals (1,342) (2,508) (773) (133) (56) – (4,812)<br />
Depreciation 5, 9 – (2,618) (22,250) (6,485) (366) – (31,719)<br />
Earthquake impairment – – (113) – – – (113)<br />
Closing carrying amount 87,034 110,358 76,848 13,247 987 9,192 297,666<br />
At 31 July 2011<br />
Cost 87,034 134,930 312,990 82,292 2,511 9,192 628,949<br />
Accumulated depreciation and impairment – (24,572) (236,142) (69,045) (1,524) – (331,283)<br />
Net carrying amount 87,034 110,358 76,848 13,247 987 9,192 297,666<br />
For the 52 week period ended 1 August 2010<br />
Opening carrying amount 53,720 104,683 77,812 16,322 1,428 3,523 257,488<br />
Additions 5 20,111 4,342 16,202 5,995 163 2,721 49,534<br />
Reclassification 2,500 (2,500) – – – – –<br />
Disposals – – (955) (564) (77) – (1,596)<br />
Depreciation 5, 9 – (2,838) (23,829) (6,017) (396) – (33,080)<br />
Closing carrying amount 76,331 103,687 69,230 15,736 1,118 6,244 272,346<br />
Notes to and forming part of the Financial Statements – continued<br />
For the 52 WEEK period ended 31 July 2011<br />
25. Property, Plant and Equipment (CONTINUED)<br />
(c) Property valuations<br />
The Directors, having taken into consideration purchase offers, independent and government valuations and other known factors,<br />
have assessed the fair value of freehold land and buildings to be $296.465 million (2010: $279.258 million). The Directors’<br />
valuation was approved by the Board on 15 September 2011. Independent property valuations are sought at least every three years,<br />
unless other factors indicate there may have been a significant change in fair value which would necessitate a revaluation being<br />
undertaken earlier.<br />
GROUP CARRYING AMOUNT DIRECTORS VALUATION<br />
2011 2010 2011 2010<br />
$000 $000 $000 $000<br />
Freehold land and buildings<br />
Support offices 10,718 11,020 23,000 23,000<br />
Distribution centres 40,809 41,279 97,000 96,000<br />
Stores 109,276 99,598 129,387 117,287<br />
Development assets and tenanted property 36,589 28,121 47,078 42,971<br />
Total freehold land and buildings 197,392 180,018 296,465 279,258<br />
Stores comprise eleven (2010: ten) store sites located throughout New Zealand. Development assets include three (2010: two)<br />
Auckland properties and properties at Silverdale and Timaru.<br />
(d) Property disposals<br />
During the year Group sold a number of properties, including its Warehouse Stationery store (and adjacent tenancy) located in<br />
Invercargill and two small parcels of surplus land located next to stores in Christchurch and Auckland, together realising a pre-tax<br />
profit of $1.470 million. There were no property disposals during the previous year.<br />
(e) Impairment review<br />
Management annually review the carrying amounts of property, plant and equipment for impairment. For the purposes of this<br />
review assets are grouped at the lowest level for which there are separately identifiable cash flows (cash generating units), which<br />
in most instances is a store. In assessing whether an asset is impaired, reference is made to individual store profitability and any<br />
other known events or circumstances that may indicate that the carrying amount of the asset may not be recoverable. The Group’s<br />
impairment review did not identify any asset impairment (2010: Nil) except for those assets damaged in the Canterbury earthquakes<br />
(refer note 12).<br />
The parent has no property, plant and equipment.<br />
At 1 August 2010<br />
Cost 76,331 125,939 288,625 82,680 2,474 6,244 582,293<br />
Accumulated depreciation – (22,252) (219,395) (66,944) (1,356) – (309,947)<br />
Net carrying amount 76,331 103,687 69,230 15,736 1,118 6,244 272,346<br />
At 2 August 2009<br />
Cost 53,720 124,240 277,594 78,492 2,748 3,523 540,317<br />
Accumulated depreciation – (19,557) (199,782) (62,170) (1,320) – (282,829)<br />
Net carrying amount 53,720 104,683 77,812 16,322 1,428 3,523 257,488<br />
FINANCIAL STATEMENTS 62<br />
FINANCIAL STATEMENTS 63