Basic HTML Version
81
Notes to the consolidated financial
statements, REC Group
REC Annual Report 2011
Specification of useful lives and depreciation
Estimated useful life for the asset class other tangible fixed assets is 3-30 years. Assets under construction are not yet ready for their
intended use, and depreciation has not started.
The tables below show specifications of useful lives and estimated depreciation in 2011 and 2012 for the asset class land and buildings and
asset class machinery and equipment.
Specification of useful lives and depreciation year-end 2010 for land and buildings, and machinery and equipment
LAND AND BUILDINGS
(NOK INMILLION)
USEFUL LIVES
(RANGE IN YEARS)
WEIGHTED
AVERAGE USEFUL
LIVES (YEARS)
1)
IMPAIRMENT 2010
DEPRECIATION
2010
COST PRICE,
DECEMBER 31,
2010
CARRYING VALUE,
DECEMBER 31,
2010
ESTIMATED
DEPRECIATION
2011
2)
REC Silicon
10 - 32
30
0
25
731
639
24
RECWafer
10 - 20
16
3
175
3 157
2 358
163
REC Solar
7 - 28
21
33
293
5 569
5 124
308
Other operations
2 - 10
5
0
5
35
29
5
Total
36
498
9 491
8 150
500
MACHINERY AND EQUIPMENT
(NOK INMILLION)
USEFUL LIVES
(RANGE IN YEARS)
WEIGHTED
AVERAGE USEFUL
LIVES (YEARS)
1)
IMPAIRMENT 2010
DEPRECIATION
2010
COST PRICE,
DECEMBER 31,
2010
CARRYING VALUE,
DECEMBER 31,
2010
ESTIMATED
DEPRECIATION
2011
2)
REC Silicon
2 - 20
14
6
785
11 341
9 808
835
RECWafer
5 - 10
7
8
567
5 234
2 964
690
REC Solar
3 - 28
9
-29
445
5 367
4 333
616
Other operations
3 - 5
3
2
9
42
30
12
Total
-13
1 806
21 983
17 136
2 153
Specification of useful lives and depreciation yea-end 2011 for land and buildings, and machinery and equipment
LAND AND BUILDINGS
(NOK INMILLION)
USEFUL LIVES
(RANGE IN YEARS)
WEIGHTED
AVERAGE USEFUL
LIVES (YEARS)
1)
IMPAIRMENT 2011
DEPRECIATION
2011
COST PRICE,
DECEMBER 31,
2011
CARRYING VALUE,
DECEMBER 31,
2011
ESTIMATED
DEPRECIATION
2012
2)
REC Silicon
5 - 32
29
0
26
809
687
35
RECWafer
10 - 20
17
2 368
97
3 264
0
0
REC Solar
10 - 28
21
2 338
268
5 475
2 468
159
Other operations
3 - 10
7
0
6
35
23
6
Total
4 706
396
9 583
3 179
200
MACHINERY AND EQUIPMENT
(NOK INMILLION)
USEFUL LIVES
(RANGE IN YEARS)
WEIGHTED
AVERAGE USEFUL
LIVES (YEARS)
1)
IMPAIRMENT 2011
DEPRECIATION
2011
COST PRICE,
DECEMBER 31,
2011
CARRYING VALUE,
DECEMBER 31,
2011
ESTIMATED
DEPRECIATION
2012
2)
REC Silicon
2 - 20
14
20
817
11 919
9 481
848
RECWafer
5 - 10
8
3 005
299
5 625
34
0
REC Solar
5 - 28
10
1 738
522
5 149
1 996
313
Other operations
3 - 5
3
2
11
41
22
12
Total
4 764
1 649
22 734
11 534
1 173
1)
Weighted average useful lives per class of assets are estimated by weighing the individual assets’ useful lives with their relative part of the segment’s total cost price.
2)
Estimated depreciation is calculated based on cost price and estimated useful lives at December 31, translated toNOK at December 31 exchange rates. For impaired assets
the depreciation is calculated based on the remaining carrying values and estimated remaining useful lives at December 31. It does not include assets under construction
or effects of any additions or disposals subsequent toDecember 31 for each year. The actual depreciationmay deviate from the estimates in the table due to, among other
things, changes in currency exchange rates, changes in estimated useful lives, impairments, additions and disposals. Estimated depreciation cannot be calculated as cost
price divided byweighted average useful life. Depreciation in 2011was lower than estimated, primarily due to the significant impairments recognized during the year.
The effects of the annual analysis for 2011 and 2010 resulted in only minor changes in estimated useful lives. The significant impairments
during 2011 affected depreciation in 2011 and will affect depreciation in 2012, as illustrated above.