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Property, Plant and Equipment | 12 Months Ended
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Dec. 31, 2013
Property, Plant and Equipment |
Property, Plant and Equipment | 6. Property, Plant and Equipment
|  | December 31, 2012 |  | December 31, 2013 |
Cost |  |  |  |  |
Construction in progress |  | 1,646 |  | 424 |
Plant and buildings |  | 34,230 |  | 35,259 |
Machinery and equipment |  | 39,359 |  | 42,851 |
Motor vehicles |  | 1,831 |  | 1,884 |
Equipment and furniture |  | 2,480 |  | 2,620 |
Leasehold improvements |  | 9,692 |  | 12,386 |
Total cost |  | $ | 89,238 |  | $ | 95,424 |
Less: Accumulated depreciation |  |  |  |  |
Construction in progress |  | — |  | — |
Plant and buildings |  | 4,603 |  | 6,455 |
Machinery and equipment |  | 11,922 |  | 15,658 |
Motor vehicles |  | 1,423 |  | 1,653 |
Equipment and furniture |  | 1,253 |  | 1,546 |
Leasehold improvements |  | 866 |  | 2,149 |
Total accumulated depreciation |  | $ | 20,067 |  | $ | 27,461 |
Property, plant and equipment net |  | $ | 69,171 |  | $ | 67,963 |
The land use rights and buildings of the Changping facilities of Sinovac Beijing with a net book value of $7,760 (RMB 47 million) were pledged as collateral (note 9) for a bank loan from China Construction Bank. The land use rights and building of Sinovac Beijing with a net book value of $20,893 (RMB 126.5 million) were pledged as collateral (note 9) for a bank loan from Bank of Beijing. The land use rights and building of Sinovac Dalian with a net book value of $9,911 (RMB 60 million) were pledged as collateral (note 9) for a bank loan from Bank of China. The loan was partially drawn down in March 2013. Depreciation expense for the years ended December 31, 2011, 2012, and 2013 was $4,272, $3,961 and $5,998, respectively. Loss on disposal of equipment in 2011, 2012 and 2013 were $36, $14 and $31, respectively. In 2012, Sinovac Beijing decided to move the packaging line from its Shangdi site to the Changping site. The equipment not being relocated to Changping and the leasehold improvements for the packaging line production area at Shangdi site were impaired as a consequence. The Company recorded an impairment charge of $679 (RMB 4.1 million) and $57 (RMB 0.3 million) in the year ended December 31, 2012, and 2013, respectively. Tangshan Yian incurred a loss in 2012 and was expected to continue to incur losses in the future. The Company performed a recoverability test of Tangshan Yian’s property, plant and equipment by comparing the forecasted undiscounted cash flow to be generated from continuous use of the property, plant and equipment to their carrying value. As the discounted cash flows over the remaining useful life of the assets were negative, the Company measured the impairment amount by estimating the fair value of the property, plant and equipment. The Company determined the fair value of Tangshan Yian’s land use rights and plant and buildings using the market approach by obtaining quoted prices for similar assets in the principal resale market. The Company determined the fair value of Tangshan Yian’s machinery and equipment using the cost approach by estimating the amount that currently would be required to construct or purchase substitute machinery and equipment of comparable utility. The estimate considered the condition of the assets which include the physical deterioration and economic obsolescence. It was determined the fair value of Tangshan Yian’s property, plant and equipment and land use rights was $2,923 compared to the carrying value of $4,420 as at December 31, 2012. The impairment of $1,497 was allocated on a pro-rata basis to the land use rights, plant and buildings, and machinery and equipment based on their relative carrying value. As the fair value of the land use rights exceeded their carrying value, the impairment amount of $1,497 was allocated to plant and buildings and machinery and equipment based on their relative carrying values.

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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2921-110230 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.13-14) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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