	Land and buildings			Production facilities			Equipment			Right of use assets			Construction in progress (“CIP”)			Total
Cost
Balance at December 31, 2018		5,246			23,336			7,254			—			54,061			89,897
Adoption of IFRS 16		—			—			(327	)		1,333			—			1,006
Acquisitions		15,860			21,294			247			14,648			6,360			58,409
Additions		1,517			283			3,393			687			134,183			140,063
Transfers from CIP		3,406			120,724			13,603			—			(137,733	)		—
Dispositions		(31	)		—			(159	)		(700	)		—			(890	)
Foreign currency translation		608			805			10			541			1,160			3,124
Balance at December 31, 2019		26,606			166,442			24,021			16,509			58,031			291,609
Additions		8			213			2,886			763			4,319			8,189
Transfers from CIP		509			8,212			2,287			—			(11,008	)		—
Reclassification to assets held for sale		(1,547	)		—			—			—			(1,451	)		(2,998	)
Dispositions		(499	)		(162	)		(50	)		(825	)		(991	)		(2,527	)
Disposition of Bridge Farm (note 5)		(16,300	)		(21,587	)		(249	)		(14,431	)		(39,734	)		(92,301	)
Foreign currency translation		(137	)		(181	)		(1	)		(122	)		(347	)		(788	)
Balance at December 31, 2020		8,640			152,937			28,894			1,894			8,819			201,184

Accumulated amortization and impairment
Balance at December 31, 2018		—			312			1,094			—			—			1,406
Adoption of IFRS 16		—			—			(100	)		—			—			(100	)
Depreciation		3			5,026			2,833			610			—			8,472
Impairment		—			—			—			—			162			162
Dispositions		—			—			(130	)		(248	)		—			(378	)
Foreign currency translation		—			62			—			1			—			63
Balance at December 31, 2019		3			5,400			3,697			363			162			9,625
Depreciation		475			6,249			4,847			638			—			12,209
Impairment		—			60,658			—			—			5,659			66,317
Dispositions		—			(37	)		(44	)		(176	)		—			(257	)
Disposition of Bridge Farm (note 5)		(473	)		(2,879	)		—			(251	)		—			(3,603	)
Foreign currency translation		(5	)		(27	)		—			(3	)		—			(35	)
Balance at December 31, 2020		—			69,364			8,500			571			5,821			84,256

Net book value
Balance at December 31, 2019		26,603			161,042			20,324			16,146			57,869			281,984
Balance at December 31, 2020		8,640			83,573			20,394			1,323			2,998			116,928

During the year ended December 31, 2020, no salaries and benefits were capitalized. During the year ended December 31, 2019 – $0.6 million in salaries and benefits was capitalized, including $0.6 million associated with construction in progress. In addition, no interest associated with construction in progress was capitalized during the year ended December 31, 2020 (year ended December 31, 2019 – $1.3 million). Construction in progress relates to the construction of production facilities and related infrastructure. During the year ended December 31, 2020, depreciation expense of $6.9 million was capitalized to biological assets and inventory (year ended December 31, 2019 - $5.7 million).

During the year ended December 31, 2020, the Company signed a purchase and sale agreement to sell certain non-core assets, consisting of land, building and equipment, located in Kamloops, British Columbia, for gross cash proceeds of $2.1 million. The sale closed on March 27, 2020.

During the year ended December 31, 2020, the Company determined that indicators of impairment existed with respect to the Company’s B.C. cash generating unit (“CGU”) as a result of the Company’s disposition of its Kamloops property and decision to suspend further construction and development activities on its Merritt facility due to market conditions and available financing. Approximately $10.0 million had been invested into the Merritt facility which consisted of land and construction in progress. A test for impairment was performed at the CGU level by comparing the estimated recoverable amount to the carrying values of the assets. The estimated recoverable amount of the assets was determined to be their fair value less costs of disposal and an impairment of $5.7 million was recorded to write down the assets to their recoverable amount of $4.2 million. The fair value measurement is categorized within Level 3 of the fair value hierarchy. The recoverable amount of these assets was further reduced to $2.9 million due to the Company receiving utility deposits back resulting from the deferral of the facility. Management is committed to a plan to sell the Merritt facility and the asset is available for immediate sale, resulting in the reclassification to assets held for sale on the consolidated statement of financial position.

During the three months ended September 30, 2020, the Company determined that indicators of impairment existed due to decreasing estimates for the size of the potential Canadian cannabis market, the Company curtailing the number of flowering rooms being used for cultivation at its Olds facility and the carrying amount of the Company’s total net assets significantly exceeded the Company’s market capitalization.

The impairment test for the Company’s Alberta CGU used a value in use approach based on internal cash flow estimates and a discount rate of 25%. The discount rate was estimated based on the Company’s weighted average cost of capital, adjusted for risks specific to the CGU. The estimated cash flows were based on a 5-year model taking into account forecasted Canadian cannabis industry activity market size and Sundial’s forecasted market share. A terminal value thereafter was applied. Based on the analysis, the Company determined there was an impairment of the Company’s Alberta CGU of $60.0 million for the three months ended September 30, 2020 (2019 - nil), as the estimated recoverable amount for this CGU was lower than the respective carrying amount. The estimated value in use for the Company’s Alberta CGU was sensitive to an increase in the discount rate. An increase to the discount rate by 1% would increase impairment by approximately $9.2 million.

At December 31, 2020, the Company determined that no indicators of impairment existed and no impairment test was required.

On December 28, 2020, the Company announced a concentrates licensing agreement based out of its Rocky View facility. Within the agreement is a non-binding purchase agreement to sell the Rocky View facility for $5.0 million. The estimated recoverable amount of the Rocky View facility was determined to be its fair value less costs of disposal and an impairment of $0.7 million was recorded to write down the assets to their recoverable amount of $5.0 million. The fair value measurement is categorized within Level 3 of the fair value hierarchy.