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, 2017:

As of March 31, 2017, restrictions on the disposal of property, plant and equipment amounted to EUR 11.9 million (March 31, 2016: EUR 10.9 million). Furthermore, as of March 31, 2017, commitments for the purchase of property, plant and equipment amounted to EUR 242.6 million (March 31, 2016: EUR 324.2 million).

Borrowing costs related to qualifying assets in the amount of EUR 15.8 million (2015/16: EUR 16.7 million) were capitalized in the reporting period. The calculation was based on an average borrowing cost rate of 2.5 % (2015/16: 2.5 %).

As of March 31, 2017, 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, 2017:

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 15.7 million (March 31, 2016: EUR 15.8 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 seven years. The Group has the option to purchase the plants at the end of the contractually agreed period or to renew the contract.

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

Payments of EUR 62.5 million (2015/16: EUR 62.8 million) under operating leases have been recognized as expenses.

The most significant operating lease agreements relate to land and buildings with a lease term of up to 50 years (some 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 business year 2016/17, the cash-generating unit in the Metal Engineering Division that works with the production of special drawn wire (ultrafine wire) recognized impairment losses of EUR 3.3 million on property, plant and equipment under other operating expenses as a result of project start-up delays and lower earnings expectations. These contrast with reversals of investment grants in the amount of EUR 1.0 million. The recoverable amount for these assets is EUR 50.2 million. A pre-tax discount rate of 7.52% was applied.

The direct reduction plant in Texas, USA, which was put into operation in the business year 2016/17 and produces high-quality HBI (hot briquetted iron), is part of the Steel Division and an independent cash-generating unit. An impairment test was carried out due to investment overruns in the construction phase. The impairment test resulted in a significant surplus.