Notes to the Group financial statements

for the year ended 30 June

	R million	2014	2013
11.	PROPERTY, PLANT AND EQUIPMENT
	Net carrying value
	Freehold land and buildings	5 844	5 541
	Leasehold land and buildings	1 498	1 536
	Infrastructure	926	957
	Plant and machinery	456	494
	Equipment	1 501	1 229
	Furniture and fittings	382	413
	Vehicles	31	37
	Operating equipment	185	179
	Capital work in progress	557	208
		11 380	10 594

		Cost
	2014   R million	Opening	Reclassi-   fications	Exchange   rate   adjustments	Additions	Disposals   and   OE usage	Impair-   ments	Closing
	Asset type
	Freehold land and buildings	6 680	(6)	(10)	480	(41)	–	7 103
	Leasehold land and buildings	2 219	31	23	31	(26)	(39)	2 239
	Infrastructure	1 406	2	(10)	28	(13)	–	1 413
	Plant and machinery	1 037	8	(6)	32	(5)	–	1 066
	Equipment	3 273	125	(6)	592	(261)	–	3 723
	Furniture and fittings	980	29	(4)	42	(54)	–	993
	Vehicles	85	1	–	9	(10)	–	85
	Operating equipment	179	–	(1)	69	(62)	–	185
	Capital work in progress	208	(254)	2	601	–	–	557
		16 067	(64)*	(12)	1 884	(472)	(39)	17 364

		Accumulated depreciation
	2014   R million	Opening	Reclassi-   fications	Exchange   rate   adjustments	Depreciation   on disposals	Depreciation	Closing
	Asset type
	Freehold land and buildings	(1 139)	–	4	24	(148)	(1 259)
	Leasehold land and buildings	(683)	1	(3)	23	(79)	(741)
	Infrastructure	(449)	–	2	13	(53)	(487)
	Plant and machinery	(543)	–	3	3	(73)	(610)
	Equipment	(2 044)	11	5	244	(438)	(2 222)
	Furniture and fittings	(567)	(21)	1	52	(76)	(611)
	Vehicles	(48)	–	–	9	(15)	(54)
		(5 473)	(9)*	12	368	(882)	(5 984)
	* Reclassified to intangible assets.
		Cost
	2013   R million	Opening	Reclassi-   fications	Exchange   rate   adjustments	Additions	Disposals   and   OE usage	Closing
	Asset type
	Freehold land and buildings	5 721	508	418	34	(1)	6 680
	Leasehold land and buildings	1 990	128	65	141	(105)	2 219
	Infrastructure	1 295	54	65	19	(27)	1 406
	Plant and machinery	942	78	42	43	(68)	1 037
	Equipment	3 147	135	106	287	(402)	3 273
	Furniture and fittings	1 112	69	40	52	(293)	980
	Vehicles	76	1	2	21	(15)	85
	Operating equipment	153	6	8	68	(56)	179
	Capital work in progress	602	(998)	3	603	(2)	208
		15 038	(19)	749	1 268	(969)	16 067
		Accumulated depreciation
	2013   R million	Opening	Reclassi-   fications	Exchange   rate   adjustments	Depreciation   on disposals	Depreciation	Closing
	Asset type
	Freehold land and buildings	(979)	–	(41)	1	(120)	(1 139)
	Leasehold land and buildings	(699)	–	(9)	104	(79)	(683)
	Infrastructure	(418)	–	(8)	27	(50)	(449)
	Plant and machinery	(531)	–	(15)	68	(65)	(543)
	Equipment	(1 998)	9	(62)	395	(388)	(2 044)
	Furniture and fittings	(768)	–	(16)	293	(76)	(567)
	Vehicles	(50)	–	(1)	15	(12)	(48)
		(5 443)	9	(152)	903	(790)	(5 473)
	The R39 million impairment on leasehold land and buildings is as a result of the onerous lease over The Maslow property (refer to note 4). The Maslow forms part of the operating segment, South African operations. The recoverable amount has been calculated using a discounted cash flow valuation. A discount rate of 11.7% was used.   Net carrying value of property, plant and equipment held under finance leases is R99 million (2013: R107 million) and relate mainly to equipment.   A copy of the register of properties is available for inspection by members of the public at the registered office of the Company.   Borrowing costs of R13 million (2013: R13 million) were capitalised during the year and are included in ‘Additions’ above. The capitalisation rate used of 3.9% (2013: 7.4%) is equal to the specific borrowing costs of the loans used to finance the relevant projects.   Included in freehold land and buildings and infrastructure are assets of R2 234 million (2013: R1 739 million) where the residual value is deemed to approximate the carrying value.