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, 2014:

As of March 31, 2014, restrictions on the disposal of property, plant and equipment amounted to EUR 19.2 million (March 31, 2013: EUR 26.9 million). Furthermore, as of March 31, 2014, commitments for the purchase of property, plant and equipment amounted to EUR 509.3 million (March 31, 2013: EUR 426.4 million).

Borrowing costs related to qualifying assets in the amount of EUR 9.2 million (2012/13: EUR 3.1 million) were capitalized in the reporting period. The calculation was based on an average borrowing cost rate of 4.0% (2012/13: 4.7%).

As of March 31, 2014, 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, 2014:

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 16.8 million (March 31, 2013: EUR 28.1 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 term between five and 22 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 53.9 million (2012/13: EUR 49.2 million) under operating leases have been recognized as expenses.

The most significant operating lease agreements are related to buildings with a lease term of at least 15 years and with a renewal obligation of about ten years in certain cases. At the end of the lease term there are purchase options. There are no restrictions concerning dividends, additional debt, and further leases.

Impairment losses and reversal of impairment losses

In the Metal Engineering Division in the period under review, impairment losses on property, plant and equipment amounting to EUR 3.5 million were recognized for obsolete plant, equipment, and buildings. They are recognized under other operating expenses. In the Metal Forming Division, impairment losses on property, plant and equipment amounting to EUR 2.3 million were recognized as provisions of possible losses on sales. They are recognized under cost of sales and other operating expenses. In the same period of the previous year, impairment losses (primarily due to obsolescence) on property, plant and equipment (relating to plant and machinery in the Metal Engineering Division and the Special Steel Division) amounting to EUR 0.6 million were reported. They are recognized primarily in the cost of sales.

No reversals of impairment losses on property, plant and equipment were recognized during the reporting period. In the same period of the previous year, reversals of impairment losses on property, plant and equipment amounting to EUR 0.4 million were recognized as income due to an increase of fair value in the Special Steel Division. They are recognized in other operating income.