Property, plant and equipment

12 Months Ended

Dec. 31, 2012

10.

Property, plant and equipment

Property, plant and equipment, presented net of accumulated depreciation in the consolidated balance sheets, consists of:


	December 31,
	2012			2011
Land and buildings	$	109,752		$	102,615
Equipment		112,346			111,144
Motor vehicles		16,962			15,671
Motor vehicles under lease		2,362			3,008
Computer hardware and software		19,699			17,476
Other		10,128			8,010

Total gross book value		271,249			257,924

Less—Accumulated depreciation		(100,854	)		(80,333	)
Less—Accumulated depreciation of leases		(651	)		(931	)

Total	$	169,744		$	176,660

Depreciation expense relating to property, plant and equipment for the year ended December 31, 2012 and 2011 amounts to $18.2 million and $18.6 million, respectively.

The following assets are subject to pledges:

•

The Bialystok facility is located on 78,665 square meters of land that has been pledged as part of the collateral to 2016 Notes.

•

The Oborniki facility is located on 80,519 square meters that has been pledged as part of the collateral to 2016 Notes.

•

The Siberia plant has been pledged as part of the collateral to 2016 Notes.

•

The Tula facility has been pledged as part of the collateral to 2016 Notes.

•

The Parliament production plant is a security for a loan from Grand Invest Bank.

- 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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