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## Note 20 – Property, plant and equipment (continued) 

## Depreciation expense 

Depreciation expense of $104.2 million (2010: $92.6 million) is included in the line item ‘depreciation and amortisation’ in the income statement. 

## Impairment loss 

No impairment loss has been recognised for the year ended 30 June 2011. 

In the 2010 financial year, the consolidated entity reviewed the recoverable amount of assets associated with its outsourced information technology infrastructure services. The consolidated entity was in the process of transitioning to a new service provider, and as a result, an impairment loss of $7.8 million was recognised to write-off the carrying amount of certain information technology assets. 

In the 2010 financial year, the consolidated entity reviewed the recoverable amount of a certain landfill gas extraction site within the Merchant Energy business. Due to lower than anticipated landfill gas at the site, and based on future cash flow forecasts, an impairment loss of $0.6 million was recognised to reduce the carrying amount of plant and equipment to its recoverable amount. 

The impairment loss of $nil (2010: $8.4 million) is included in other expenses in the line item ‘impairment of property, plant and equipment’ in Note 6. 

## Leased plant and equipment 

The net carrying amount of plant and equipment disclosed above includes plant and equipment held under finance leases of $134.3 million (2010: $138.3 million). 

## Property, plant and equipment under construction 

The net carrying amount of plant and equipment disclosed above includes expenditure recognised in relation to plant and equipment which is in the course of construction of $424.0 million (2010: $220.4 million). 

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