COST Financial_Report

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Unformatted text preview: a 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> </div><spa n></spa n></td> < /tr> < tr cla ss=3Dre> < td cla ss=3Dpl va lign=3Dtop>Property a nd Equipment</td> < td cla ss=3Dtext><div> <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 nces occur tha t ma y indica te the ca rrying a mount of the a sset group, genera lly a n individua l wa rehouse, ma y not be fully recovera ble. For a sset groups held a nd used, including wa rehouses to be reloca ted, the ca rrying va lue of the a sset group is considered recovera ble when the estima ted future undiscounted ca sh flows genera ted from the use a nd eventua l disposition of the a sset group exceed the group&#x2019 tha t the ca rrying va lue is not considered recovera ble, a n impa irment loss would be recogniz ed for the a sset group to be held a nd used equa l to the excess of the ca rrying va lue a bove the estima ted fa ir va lue of the a sset group. For a sset groups cla ssified a s held for sa le (disposa l group), the ca rrying va lue is compa red to the disposa l group&#x2019 sell. The Compa ny estima tes fa ir va lue by obta ining ma rket a ppra isa ls from third pa rty brokers or other va lua tion techniques. Impa irment cha rges, included in selling, genera l a nd a dministra tive expenses on the consolida ted sta tements of income, in 2012, 2011, a nd 2010 were imma teria l.</font></p> </div><spa n></spa n></td> < /tr> < tr cla ss=3Dro> < td cla ss=3Dpl va lign=3Dtop>Softwa re Costs</td> <...
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This document was uploaded on 04/07/2014.

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