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The cost of inventories expensed in cost of sales for the three months and year ended December 31, 2012, was $32.5 million and $88.0 million respectively (for the three months and year ended December 31, 2011 - $25.6 million and $90.8 million respectively). Inventories are pledged as general security under the credit facility.
NOTE 4. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following:
---------------------------------------------------------------------------- Plant and Land equipment Landfill Total----------------------------------------------------------------------------CostBalance, December 31, 2010 14,696 910,580 117,202 1,042,478Additions during the year - 122,980 18,517 141,497Disposals during the year - (1,804) - (1,804)----------------------------------------------------------------------------Balance, December 31, 2011 14,696 1,031,756 135,719 1,182,171----------------------------------------------------------------------------Additions during the year - 163,843 8,349 172,192Disposals during the year (3) (7,011) - (7,014)----------------------------------------------------------------------------Balance, December 31, 2012 14,693 1,188,588 144,068 1,347,349----------------------------------------------------------------------------Accumulated AmortizationBalance, December 31, 2010 - (254,338) (46,347) (300,685)Amortization for the year - (46,156) (15,719) (61,875)Disposals during the year - 491 - 491----------------------------------------------------------------------------Balance, December 31, 2011 - (300,003) (62,066) (362,069)----------------------------------------------------------------------------Amortization for the year - (49,729) (10,385) (60,114)Disposals during the year - 4,414 - 4,414----------------------------------------------------------------------------Balance, December 31, 2012 - (345,318) (72,451) (417,769)----------------------------------------------------------------------------Carrying amountsAs at December 31, 2011 14,696 731,753 73,653 820,102As at December 31, 2012 14,693 843,270 71,617 929,580----------------------------------------------------------------------------
For the three months and year ended December 31, 2012, Newalta capitalized $1.6 million and $4.7 million respectively, (for the three months and year ended December 31, 2011 - $0.9 million and $2.7 million respectively) of borrowing costs using a capitalization rate of 6.25% and 6.3% respectively (December 31, 2011 - 6.64% and 6.5% respectively).
NOTE 5. PERMITS, INTANGIBLE ASSETS AND GOODWILL
---------------------------------------------------------------------------- Definite life Non- Indefinite permits/ competition permits rights contracts Total----------------------------------------------------------------------------CostBalance, December 31, 2010 53,037 14,650 6,020 73,707Additions during the year - 56 - 56Disposal during the year - (200) - (200)----------------------------------------------------------------------------Balance, December 31, 2011 53,037 14,506 6,020 73,563----------------------------------------------------------------------------Expired intangibles - (2,850) (6,020) (8,870)----------------------------------------------------------------------------Balance, December 31, 2012 53,037 11,656 - 64,693----------------------------------------------------------------------------Accumulated Amortization (1)Balance, December 31, 2010 - (7,108) (6,020) (13,128)Amortization for the year - (1,042) - (1,042)Disposal during the year - 200 - 200----------------------------------------------------------------------------Balance, December 31, 2011 - (7,950) (6,020) (13,970)----------------------------------------------------------------------------Amortization for the year - (979) - (979)Expired intangibles - 2,850 6,020 8,870----------------------------------------------------------------------------Balance, December 31, 2012 - (6,079) - (6,079)----------------------------------------------------------------------------Carrying amountsAs at December 31, 2011 53,037 6,556 - 59,593As at December 31, 2012 53,037 5,577 - 58,614----------------------------------------------------------------------------(1) Amortization is included in cost of sales and selling, general and administrative in the Consolidated Statements of Operations.Intangibles have been allocated to the following CGUs:---------------------------------------------------------------------------- December 31, 2012 December 31, 2011----------------------------------------------------------------------------West Facilities 683 850East Facilities 41,411 41,833Onsite 620 1,010VSC 15,900 15,900---------------------------------------------------------------------------- 58,614 59,593----------------------------------------------------------------------------Goodwill has been allocated to the following CGUs:---------------------------------------------------------------------------- December 31, 2012 December 31, 2011----------------------------------------------------------------------------West Facilities 12,182 12,182East Facilities 34,027 34,027Onsite 56,406 56,688---------------------------------------------------------------------------- 102,615 102,897----------------------------------------------------------------------------
