Ardagh Glass Finance plc - Irish Stock Exchange

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. Property, plant and equipment (Continued)
Impairment
Impairment tests for items of property, plant and equipment are performed on an entity level basis
and resulted in the Group recognising impairment costs of A nil and A1,909,000 in 2007 and 2006,
respectively. The recoverable amounts in property, plant and equipment are based on value-in-use
calculations. The same cash flow projections and discount rates for items of property, plant and
equipment were used for the goodwill impairment calculations (Note 8). Impairment charges are
recognised within other income and expense in the Group Income Statement.
Included in property, plant and equipment is an amount for land of A69,025,000 (2006: A9,700,000).
The depreciation charge for capitalised leased assets was A10,154,000 (2006: A13,545,000) and the
related finance charges amounted to A2,161,000 (2006: A1,909,000). The net carrying amount by class of
assets at each Balance Sheet date is as follows:
2007 2006
E’000 E’000
Land and buildings ................................................. 14,404 17,020
Property, plant and equipment ........................................ 25,726 35,198
Office equipment and vehicles ......................................... 194 285
40,324 52,503
Operating lease commitments
Operating lease rentals amounting to A7,483,000 (2006: A10,232,000) relating to the lease of plant
and equipment are included in the income statement.
At 31 December 2007 the Group had annual commitments under non-cancellable operating leases
which expire:
2007 2006
E’000 E’000
Within 1 year ...................................................... 3,501 581
Within 2–5 years inclusive ............................................. 7,051 1,425
After 5 years ...................................................... 6,673 2,650
17,225 4,656
An impairment charge of A1,909,000 was recognised in 2006 relating to the November 2006
furnace closure at the Barnsley plant.
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