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, 2018:

As of March 31, 2018, restrictions on the disposal of property, plant and equipment amounted to EUR 4.0 million (March 31, 2017: EUR 11.9 million). Furthermore, as of March 31, 2018, commitments for the purchase of property, plant and equipment amounted to EUR 398.1 million (March 31, 2017: EUR 242.6 million).

Borrowing costs related to qualifying assets in the amount of EUR 6.2 million (2016/17: EUR 15.8 million) were capitalized in the reporting period. The calculation was based on an average borrowing cost rate of 2.4% (2016/17: 2.5%).

As of March 31, 2018, 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, 2018:

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 24.8 million (March 31, 2017: EUR 15.7 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 six 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 62.7 million (2016/17: EUR 62.5 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 2017/18, the cash-generating unit of the Metal Engineering Division that produces special drawn wire (ultrafine wire), recognized impairment losses of EUR 12.2 million (2016/17: EUR 3.3 million) on property, plant and equipment as well as of EUR 3.5 million (2016/17: EUR 0.0 million) on intangible assets for a total of EUR 15.7 million (2016/17: EUR 3.3 million) in other operating expenses due to negative sales-related developments as well as the resulting adjustment of the strategic alignment and lowered earnings forecasts. These contrast with reversals of investment grants in the amount of EUR 0.8 million (2016/17: EUR 1.0 million). The recoverable amount (value in use) for these assets is EUR 31.5 million (2016/17: EUR 50.2 million). A pre-tax discount rate of 7.88% (2016/17: 7.52%) was applied.

In the business year 2017/18, write-downs of EUR 10.1 million were taken on property, plant and equipment in other operating expenses for the Brazilian cash-generating unit of the High Performance Metals Division—whose largest export market is the US—due to the restrictions placed on exports under Section 232 and the ensuing uncertainties. The recoverable amount (value in use) for this cash-generating unit is EUR 197.9 million (translated at the end of period exchange rate). The discount rates applied are between 8.19% and 16.95% before tax.