PROPERTY, PLANT AND EQUIPMENT, NET

5. PROPERTY, PLANT AND EQUIPMENT, NET

As of June 30, 2013 and December 31, 2012, property, plant and equipment consisted of the following:

*(In millions)*	June 30, 2013		December 31, 2012

Machinery and equipment	$	2,287.7	$	1,492.6
Buildings		226.4		203.7
Depletable land and land improvements		288.0		90.4
Construction-in-progress		80.7		33.6

Property, plant and equipment, at cost		2,882.8		1,820.3
Less: accumulated depreciation		1,238.6		1,182.6

Property, plant and equipment, net	$	1,644.2	$	637.7

Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. We periodically monitor actual experience to determine whether events and circumstances have occurred that may warrant revision of the estimated useful lives of property, plant and equipment. Effective January 1, 2013, we changed the useful lives of certain property, plant and equipment as a result of our historical experience which demonstrated longer useful lives for certain classes of assets. The change was accounted for as a change in estimate and applied prospectively. For the three months ended June 30, 2013, the effect of the change decreased depreciation expense by $5.5 million, increased net income attributable to Axiall by approximately $3.4 million and increased diluted earnings per share by $0.04. For the six months ended June 30, 2013, the effect of the change decreased depreciation expense by $10.7 million, increased net income attributable to Axiall by approximately $6.6 million and increased diluted earnings per share by $0.10.

The estimated useful lives of our property, plant and equipment are as follows:



Buildings			27-39 years
Depletable land and land improvements			15-25 years
Machinery, plant and equipment			2-25 years
Dies and moulds			3-10 years
Office furniture and equipment			2-10 years
Computer equipment and software			3-10 years

- 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.

+ References+ Details