Property, Plant and Equipment

12 Months Ended

Mar. 31, 2014

Property, Plant and Equipment

Property, Plant and Equipment

4. Property, Plant and Equipment

        Property, plant and equipment are comprised of the following:

	As at March 31, 2014
	Cost		Accumulated Depreciation			Net Book Value
Cushion	$	421,404	$	—		$	421,404
Pipelines and measurement		296,671		(92,687	)		203,984
Wells		126,694		(40,700	)		85,994
Facilities		272,645		(79,028	)		193,617
Computer hardware and software		4,225		(3,087	)		1,138
Construction in progress, including projects under development		1,063		—			1,063
Office furniture, equipment and other		2,473		(1,399	)		1,074
	$	1,125,175	$	(216,901	)	$	908,274

	As at March 31, 2013
	Cost		Accumulated Depreciation			Net Book Value
Cushion	$	406,141	$	—		$	406,141
Pipelines and measurement		296,661		(81,950	)		214,711
Wells		126,519		(36,179	)		90,340
Facilities		267,508		(64,238	)		203,270
Computer hardware and software		4,095		(2,653	)		1,442
Construction in progress, including projects under development		928		—			928
Office furniture, equipment and other		2,473		(1,244	)		1,229
	$	1,104,325	$	(186,264	)	$	918,061

        Facilities include cost and accumulated depreciation of assets under capital lease of $14.2 million and $4.5 million as of March 31, 2014 and $14.2 million and $1.8 million as of March 31, 2013, respectively.

        In March 2014, the Company reclassified the balance of its long-term natural gas inventory to cushion to reflect operational requirements.

        During the year ended March 31, 2013, a loss of $9.5 million was recognized as depreciation and amortization on the consolidated statements of earnings (loss) and comprehensive income (loss) for the estimated amount of cushion that had migrated (March 31, 2014—$ nil; March 31, 2012—$6.7 million). In addition, the Company sold cushion from one of its Canadian facilities and from two of its U.S. facilities, which resulted in losses of $14.9 million and $2.8 million during the years ended March 31, 2013 and 2012, respectively.

        Certain steel pipe that was deemed no longer fit to transport natural gas was sold after March 31, 2012. These assets were valued as of March 31, 2012 using a combination of the present value of future cash flows method and the subsequently agreed selling price, resulting in an impairment charge of $2.5 million (March 31, 2014—$ nil; March 31, 2013—$ nil).