9. Property, plant and equipment

The following table shows a reconciliation of the carrying amounts of property, plant and equipment for the periods presented in the consolidated financial statements as of March 31, 2016:

As of March 31, 2016, restrictions on the disposal of property, plant and equipment amounted to EUR 10.9 million (March 31, 2015: EUR 13.9 million). Furthermore, as of March 31, 2016, commitments for the purchase of property, plant and equipment amounted to EUR 324.2 million (March 31, 2015: EUR 698.1 million).

Borrowing costs related to qualifying assets in the amount of EUR 16.7 million (2014/15: EUR 13.9 million) were capitalized in the reporting period. The calculation was based on an average borrowing cost rate of 2.5% (2014/15: 3.5%).

As of March 31, 2016, the gross carrying amount and accumulated depreciation of investment properties (IAS 40) are reported as follows:

The following table shows a reconciliation of the carrying amounts of investment properties for the periods presented in the consolidated financial statements as of March 31, 2016:

Investment properties are measured at cost. Depreciation is recorded in line with the general accounting policies for property, plant and equipment. Based on comparable sales transactions, the market value of these assets is estimated at EUR 15.8 million (March 31, 2015: EUR 16.6 million). Rental income and expenses for investment properties are immaterial.

The carrying amount for each class of asset under finance leases is reported as follows:

The present value of the minimum finance lease payments is due as follows:

The most significant finance lease agreements for buildings and production plants have a remaining term of eight years. Thereby, the Group has the option to purchase the plants at the end of the contracted period or renew the contract.

In addition to finance leases, obligations also exist under operating leases for property, plant and equipment that are not reported on the statement of financial position. These obligations are due as follows:

Payments of EUR 62.8 million (2014/15: EUR 61.0 million) under operating leases have been recognized as expenses.

The most significant operating lease agreements are related to land and buildings with a lease term up to 50 years (some of them with a termination option for voestalpine companies) and with a renewal option in certain cases. At the end of the lease term there are purchase options at fair value. There are no restrictions concerning dividends, additional debt, and further leases.

Impairment losses and reversal of impairment losses

In the previous year, a write-down to the net fair value as part of the deconsolidation of voestalpine Plastics Solutions amounting to a total of EUR 13.9 million and impairment losses on a cash generating unit in Russia that is engaged in the production of profiles amounting to EUR 5.2 million were recognized under profit and loss in the Metal Forming Division. They are recognized under other operating expenses. Impairment losses were recognized on the activities in Russia due to the weak market environment. The recoverable amount from this cash generating unit is EUR 4.4 million. A pre-tax discount rate of 11.75% was applied.

Also in the previous year, in the Special Steel Division, impairment losses of EUR 16.3 million were recognized in one forging line (= cash generating unit) under property, plant and equipment due to negative trends in the German energy engineering industry. They are recognized under cost of sales. The recoverable amount from this cash generating unit is EUR 73.1 million. A pre-tax discount rate of 7.20% was applied.

In the previous year, for one cash generating unit in the Metal Engineering Division that works with the production of ultrafine wires, impairment losses of EUR 15.0 million were recognized under property, plant and equipment as a consequence of negative market trends due to the German energy transition. They are recognized under cost of sales. The recoverable amount from this cash generating unit is EUR 28.9 million. A pre-tax discount rate of 7.20% was applied.

In the previous year, the recoverable amount is equal to the value in use with the exception of voestalpine Plastics Solutions, which has been sold.