93 AGL Energy Limited Annual Report 2012 Acquisitions through business combinations  Depreciation expense Leased plant and equipment  Property, plant and equipment under construction  On 29 June 2012, the consolidated entity completed the acquisition of Great Energy Alliance Corporation Pty Limited (GEAC), increasing  its ownership from 32.54% to 100%. The provisional fair value of the GEAC property, plant and equipment as at the date of acquisition was  $2,473.6 million. Refer Note 43 for further details. Depreciation expense of $118.2 million (2011: $104.2 million) is included in the line item ‘depreciation and amortisation’ in the income  statement. The net carrying amount of plant and equipment disclosed above includes plant and equipment held under finance leases of $136.4 million  (2011: $134.3 million). The net carrying amount of plant and equipment disclosed above includes expenditure recognised in relation to plant and equipment which  is in the course of construction of $777.6 million (2011: $424.0 million). Freehold  land and  buildings  $m  Leasehold  improvements  $m  Plant and  equipment  $m  Total  $m  Note 21 – Property, plant and equipment Year ended 30 June 2012 Balance at 1 July 2011, net of accumulated depreciation and impairment 24.6  16.0  2,240.9  2,281.5  Additions 26.3  1.7  654.2  682.2  Acquisitions through business combinations (Note 43) 48.1  –  2,425.8  2,473.9  Disposals –  –  (133.7) (133.7) Depreciation expense (0.2) (2.3) (115.7) (118.2) Balance at 30 June 2012, net of accumulated depreciation and impairment 98.8  15.4  5,071.5  5,185.7  Balance at 1 July 2011 Cost (gross carrying amount) 26.3  27.7  2,861.1  2,915.1  Accumulated depreciation and impairment (1.7) (11.7) (620.2) (633.6) Net carrying amount 24.6  16.0  2,240.9  2,281.5  Balance at 30 June 2012 Cost (gross carrying amount) 100.7  29.4  5,807.3  5,937.4  Accumulated depreciation and impairment (1.9) (14.0) (735.8) (751.7) Net carrying amount 98.8  15.4  5,071.5  5,185.7  Year ended 30 June 2011 Balance at 1 July 2010, net of accumulated depreciation and impairment 24.7  18.1  2,013.4  2,056.2  Additions 0.1  0.1  469.5  469.7  Acquisitions through business combinations (Note 43) –  –  8.4  8.4  Transferred from oil and gas assets (Note 20) –  –  14.5  14.5  Transferred from intangible assets (Note 22) –  –  6.4  6.4  Disposals –  –  (3.6) (3.6) Derecognised on disposal of subsidiaries (Note 44) –  –  (165.9) (165.9) Depreciation expense (0.2) (2.2) (101.8) (104.2) Balance at 30 June 2011, net of accumulated depreciation and impairment 24.6  16.0  2,240.9  2,281.5  Balance at 1 July 2010 Cost (gross carrying amount) 26.2  27.6  2,539.8  2,593.6  Accumulated depreciation and impairment (1.5) (9.5) (526.4) (537.4) Net carrying amount 24.7  18.1  2,013.4  2,056.2  Balance at 30 June 2011 Cost (gross carrying amount) 26.3  27.7  2,861.1  2,915.1  Accumulated depreciation and impairment (1.7) (11.7) (620.2) (633.6) Net carrying amount 24.6  16.0  2,240.9  2,281.5