Property, Plant And Equipment
The Company records investments in land, buildings, and machinery and equipment at cost. Depreciation is computed principally using the straight-line method over estimated service lives, which for principal assets are 30 to 40 years for buildings and 8 to 12 years for machinery and equipment. Long-lived tangible assets are reviewed for impairment whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable. Impairment losses are recognized based on estimated fair values if the sum of estimated future undiscounted cash flows of the related assets is less than the carrying values. The components of property, plant and equipment as of September 30 follow:
|
| | | | | | | |
| | 2016 |
| | 2017 |
|
Land | | $ | 210 |
| | 295 |
|
Buildings | | 1,867 |
| | 2,043 |
|
Machinery and equipment | | 4,932 |
| | 5,175 |
|
Construction in progress | | 318 |
| | 360 |
|
Property, plant and equipment, at cost | | 7,327 |
| | 7,873 |
|
Less: Accumulated depreciation | | 4,396 |
| | 4,552 |
|
Property, plant and equipment, net | | $ | 2,931 |
| | 3,321 |
|
The increase is primarily due to the valves & controls acquisition. See Note 3.
