COST Financial_Report

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Unformatted text preview: esults determined a t yea r-end, when a ctua l infla tion ra tes a nd inventory levels ha ve been determined.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Due to net infla tiona ry trends in 2012 a nd 2011, mercha ndise inventories va lued a t LIFO were lower tha n FIFO, resulting in a cha rge to mercha ndise costs of $21 a nd $87, respectively. At the end 2012 a nd 2011, the cumula tive impa ct of the LIFO va lua tion on mercha ndise inventories wa s $108 a nd $87, respectively. At the end of 2010, mercha ndise inventories va lued a t LIFO a pproxima ted FIFO a fter considering the lower of cost or ma rket principle.</font></p> <p style=3D'MARGIN-TOP: 12px &#xA0 <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>The Compa ny provides for estima ted inventory losses between physica l inventory counts a s a percenta ge of net sa les, using estima tes ba sed on the Compa ny&#x2019 to reflect the results of the a ctua l physica l inventory counts, which genera lly occur in the second a nd fourth fisca l qua rters of the fisca l yea r. Inventory cost, where a ppropria te, is reduced by estima tes of vendor reba tes when ea rned or a s the Compa ny progresses towa rds ea rning those reba tes, provided tha t they a re proba ble a nd rea sona bly estima ble.</font></p> <p style=3D'MARGIN-TOP: 18px Equipment</i></font></p> <p style=3D'MARGIN-TOP: 6 px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Property a nd equipment a re sta ted a t cost. In genera l, new building a dditions a re sepa ra ted into components, ea ch with its own estima ted useful life, genera lly five to fifty yea rs for buildings a nd improvements a nd three to twenty yea rs for equipment a nd fixtures. Deprecia tion a nd a mortiz a tion expense is computed using the stra ight-line method over estima ted useful lives or the lea se term, if shorter. Lea sehold improvements incurred a fter the beginning of the initia l lea se term a re deprecia ted over the shorter of the estima ted useful life of the a sset or the rema ining term of the initia l lea se plus a ny renewa ls tha t a re rea sona bly a ssured a t the da te the lea sehold improvements a re ma de.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Repa ir a nd ma intena nce costs a re expensed when incurred. Expenditures for remodels, refurbishments a nd improvements tha t a dd to or cha nge the wa y a n a sset functions or tha t extend the useful life of a n a sset a re ca pita liz ed. Assets tha t were removed during the remodel, refurbishment or improvement a re retired. Assets cla ssified a s held for sa le were not ma teria l a t the end of 2012 or 2011.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>The Compa ny eva lua tes long-lived a ssets for impa irment on a n a nnua l ba sis, when reloca ting or closing a fa cility, or when events or cha nges in circumsta...
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This document was uploaded on 04/07/2014.

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