30 June 2014 Notes to the Financial Statements For personal use only Reconciliations NOTE 18. NON-CURRENT ASSETS - EXPLORATION & MINE DEVELOPMENT EXPENDITURE The recoverable amount of each cash generating unit above is determined based on value-in-use calculations.  Notes to the  Financial  Statements Value-in-use is calculated based on the present value of cash flow projections over a three-year period, together  with a terminal value. The cash flows are discounted using the target weighted average cost of capital for the  Consolidated Entity. The following assumptions were used in the value-in-use calculations: Pre-tax discount rate - 17.3% (2013: 17.3%) Growth rate of cash flows - 2.5% (2013: 2.5%) Goodwill has an indefinite life. The following cash generating units have carrying amounts of goodwill: Impairment testing Reconciliations of the written down values at the beginning and end of the current and previous financial year are  set out below: Consolidated Goodwill Patents Port access Operating lease Software Total $’000 $’000 $’000 $’000 $’000 $’000 Balance at 1 July 2012 10,235  10,984  48,476  6,334  - 76,029  Additions - - 1,059  - 66  1,125  Transfers in/(out) - - (2,171) - - (2,171) Amortisation expense - - (1,413) (704) (17) (2,134) Balance at 30 June 2013 10,235  10,984  45,951  5,630  49  72,849  Additions - 4,926  59  - 278  5,263  Transfers in/(out) - - (204) - - (204) Amortisation expense - (3,295) (7,129) (704) (79) (11,207) Balance at 30 June 2014 10,235  12,615  38,677  4,926  248  66,701  Consolidated 30 June 2014 $’000 30 June 2013 $’000 PIHA Pty Ltd 8,817  8,817  Process Minerals International Pty Ltd 1,418  1,418  10,235  10,235  Consolidated 30 June 2014 $’000 30 June 2013 $’000 Exploration and evaluation expenditure 309,395  301,875  Mine development expenditure 158,438  139,896  Less: Accumulated amortisation (89,616) (37,903) 68,822  101,993  378,217  403,868  Mineral Resources Limited Annual Report 2014  75