13. Property, plant and equipment (PPE) continued Key accounting judgements The group’s property, plant and equipment, particularly the group’s distribution assets, are
critical to the running of the group’s business. In assessing whether the costs incurred in a project on the group’s assets are capital in nature, management must apply the following judgements: — Whether the costs incurred are directly attributable to bringing an asset to the location and condition necessary for it to be capable of operating in the manner intended by management; — Whether subsequent costs incurred represent an enhancement to existing assets or maintain the current operating capability of existing assets; — Whether overhead costs can be reasonably allocated to the construction or acquisition of an asset.
Capital commitments
The estimated capital expenditure for PPE and software intangibles contracted for at balance date but not provided is $138.4 million for the group (2022: $226.1 million).
14. Leases 14.1 Right of use assets
LAND, BUILDINGS AND IMPROVEMENTS $M
OTHER PLANT AND EQUIPMENT $M
TOTAL $M
Carrying amount 30 June 2021
31.2 49.7
4.9 8.3
36.1 58.0
Cost
Accumulated depreciation
(18.5)
(3.4)
(21.9)
Additions Disposals
4.7
2.6
7.3
(6.4) (8.1)
–
(6.4)
Depreciation for the period Carrying amount 30 June 2022
(2.3)
(10.4)
21.4 46.5
5.2 7.9
26.6 54.4
Cost
Accumulated depreciation
(25.1)
(2.7)
(27.8)
43.5
3.3
46.8
Additions Disposals
(2.8) (2.8) (8.7)
–
(2.8) (4.3)
(1.5) (2.1)
Sale of discontinued operations Depreciation for the period Carrying amount 30 June 2023
(10.8)
50.6 68.0
4.9 6.9
55.5 74.9
Cost
(17.4)
(2.0)
(19.4)
Accumulated depreciation
14.2 Lease liabilities maturity analysis
MINIMUM LEASE PAYMENTS $M
PRESENT VALUE $M
INTEREST $M
11.9 32.6 46.7 91.2
(3.7)
8.2
Within one year One to five years Beyond five years
(13.7)
18.9 37.9 65.9
(8.8)
Total
(26.2)
8.2
Current portion
56.8 65.0
Non-current portion
Total
80
Vector Annual Report 2023
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