Property, Plant, and Equipment

12 Months Ended

Mar. 31, 2011

6. Property, Plant, and Equipment

Property, plant, and equipment is stated at cost and depreciated over estimated useful lives. Machinery and test equipment is depreciated using the double declining balance method at most of ATK's facilities, and using the straight-line method at other ATK facilities. Other depreciable property is depreciated using the straight-line method. Machinery and equipment are depreciated over one to 30 years and buildings and improvements are depreciated over one to 45 years. Depreciation expense was $100,041 in fiscal 2011, $93,739 in fiscal 2010, and $80,137 in fiscal 2009.

ATK reviews property, plant, and equipment for impairment when indicators of potential impairment are present. When such impairment is identified, it is recorded as a loss in that period. ATK recorded impairment charges of approximately $11,400 and $7,900 during fiscal 2010 and 2009, respectively, within Armament Systems related to the Company's TNT production facility and ATK's decision to procure all future TNT requirements from an off-shore vendor.

Maintenance and repairs are charged to expense as incurred. Major improvements that extend useful lives are capitalized and depreciated. The cost and accumulated depreciation of property, plant and equipment retired or otherwise disposed of are removed from the related accounts, and any residual values are charged or credited to income.

Property, plant, and equipment consists of the following:

	March 31

	2011			2010
Land	$	32,295		$	32,229
Buildings and improvements		297,924			348,205
Machinery and equipment		1,089,247			867,396
Property not yet in service		49,244			84,915

Gross property, plant, and equipment		1,468,710			1,332,745
Less accumulated depreciation		(880,961	)		(770,814	)

Net property, plant, and equipment	$	587,749		$	561,931