ar11-lr-final

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