EQUIPMENT AND LEASEHOLD IMPROVEMENTS

6 Months Ended

Sep. 30, 2013

EQUIPMENT AND LEASEHOLD IMPROVEMENTS

3. EQUIPMENT AND LEASEHOLD IMPROVEMENTS

Equipment and leasehold improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives for equipment and furniture and fixtures, or the shorter of the land lease term or estimated useful lives for leasehold improvements as follows:

Equipment		3 to 10 years
Furniture and fixtures		3 to 7 years
Leasehold improvements		10 to 25 years

Equipment and leasehold improvements consist of the following:

	September 30, 2013			March 31, 2013
	(in thousands)
Equipment	$	7,782		$	7,455
Leasehold improvements	8,751			8,313
Furniture and fixtures	217			208
	16,750			15,976
Less accumulated depreciation and amortization	(10,853		)	(10,496		)
Construction-in-progress	5,033			3,355
Equipment and leasehold improvements, net	$	10,930		$	8,835

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amount to forecasted undiscounted future cash flows expected to be generated by the asset. If the carrying amount exceeds its estimated future cash flows, then an impairment charge is recognized to the extent that the carrying amount exceeds the asset’s fair value. Management has determined no asset impairment existed as of September 30, 2013. The Company recognized a loss on disposal of assets in the amount of $21,000 and $26,000 for the three and six months ended September 30, 2013, respectively. The Company recognized a loss on disposal of assets in the amount of $13,000 and $35,000 for the three and six months ended September 30, 2012, respectively.

The Company has capitalized $55,000 and $98,000 of interest for the three and six months ended September 30, 2013, respectively. No interest was capitalized for the three and six month period ended September 30, 2012.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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