48 Orbit G arant 2012 annual rep O rt N OTES TO CONSOLIDATED FINANCIAL STATEMENTS continued For the years ended June 30 2012 and 2011 in thousands of Canadian dollars except for earnings per share and option data 7 INVENTORIES Inventories consist of the following June 30 June 30 July 1 2012 2011 2010 Spare parts gross 10651 7647 5242 Consumables gross 30301 24381 16891 Other 1084 1618 575 42036 33646 22708 Spare parts mainly include motors and heads Spare parts are charged to the statement of income when used on equipment Cons umables mainly include destructive tools hammers muds wire lines and casing Consumables are charged to the statement of inc ome when delivered to the feld The cost of inventory recognized as an expense and included in cost of contract revenue has been recorded as follows June 30 June 30 2012 2011 31661 27097 During the year there were no signifcant writedowns of inventory as a result of net realizable value being lower than cos t and no inventory writedowns recognized in previous years were reversed The Companys credit facilities are in part secured by a general assignment of the Company s inventory 8 INVESTMENTS IN ASSOCIATE June 30 June 30 July 1 2012 2011 2010 6483976 Canada Inc Usinage XSPEC 4000 class A shares representing 40 of the voting shares equity method 838 48000 class I shares nonparticipating nonvoting maximum dividend of 8 per year redeemable at the option of the company at 48000 at cost 48 886 9 PROPERTY PLANT AND EQUIPMENT Changes in the property plant and equipment balance were as follows for the periods Buildings and Drilling Land components equipment Vehicles Other Total Cost Balance as at July 1 2010 761 3146 33037 8519 1191 46654 Additions 37 6047 9156 2715 692 18647 Disposals 69 526 1016 426 2037 Business acquisitions note 2 1053 177 32 1262 Balance as at June 30 2011 729 8667 42230 10985 1915 64526 Additions 1 613 13147 3803 813 18377 Disposals 293 75 2441 429 3 3241 Business acquisitions note 2 75 557 4290 235 83 5240 Effect of movements in exchange rates 24 3 27 Balance as at June 30 2012 512 9762 57202 14591 2808 84875