Concept shown: us-gaap:PropertyPlantAndEquipmentPolicyTextBlock

Concept shown: us-gaap:PropertyPlantAndEquipmentPolicyTextBlock
(1) 3M CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/16/2011; SIC code:3841 (SURGICAL & MEDICAL INSTRUMENTS & APPARATUS)
Network: http://www.mmm.com/role/DisclosureSignificantAccountingPoliciesPolicies
[Table]:

Property, plant and equipment: Property, plant and equipment, including capitalized interest and internal engineering costs, are recorded at cost. Depreciation of property, plant and equipment generally is computed using the straight-line method based on the estimated useful lives of the assets. The estimated useful lives of buildings and improvements primarily range from 10 to 40 years, with the majority in the range of 20 to 40 years. The estimated useful lives of machinery and equipment primarily range from three to 15 years, with the majority in the range of five to 10 years. Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. Upon disposal, assets and related accumulated depreciation are removed from the accounts and the net amount, less proceeds from disposal, is charged or credited to operations. Property, plant and equipment amounts are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis.

*
(2) ABBOTT LABORATORIES (SEC Filing, XBRL), Form: 10-K; Filing date: 2/18/2011; SIC code:2834 (PHARMACEUTICAL PREPARATIONS)
Network: http://www.abbott.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

        PROPERTY AND EQUIPMENT — Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets. The following table shows estimated useful lives of property and equipment:

Classification
  Estimated Useful Lives

Buildings

  10 to 50 years (average 27 years)

Equipment

  3 to 20 years (average 11 years)
*
(3) ADOBE SYSTEMS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 1/27/2011; SIC code:7372 (SERVICES-PREPACKAGED SOFTWARE)
Network: http://adobe.com/role/SignificantAccountingPoliciesPolicies
[Table]:
Property and Equipment
     We record property and equipment at cost less accumulated depreciation and amortization. Property and equipment are depreciated using the straight-line method over their estimated useful lives ranging from 1 to 5 years for computers and equipment as well as server hardware under capital leases, 1 to 6 years for furniture and fixtures and up to 35 years for buildings. Leasehold improvements are amortized using the straight-line method over the lesser of the remaining respective lease term or useful lives.
*
(4) AES CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:4991 (COGENERATION SERVICES & SMALL POWER PRODUCERS)
Network: http://www.aes.com/role/DisclosureSignificantAccountingPoliciesPolicies
[Table]:

Property, plant and equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation. The cost of renewals and improvements that extend the useful life of property, plant and equipment are capitalized.

Construction progress payments, engineering costs, insurance costs, salaries, interest and other costs directly relating to construction in progress are capitalized during the construction period, provided the completion of the project is deemed probable, or expensed at the time the Company determines that development of a particular project is no longer probable. The continued capitalization of such costs is subject to ongoing risks related to successful completion, including those related to government approvals, site identification, financing, construction permitting and contract compliance. Construction in progress balances are transferred to electric generation and distribution assets when an asset group is ready for its intended use. Government subsidies are recorded as a reduction to property, plant and equipment and reflected in cash flows from investing activities.

Depreciation, after consideration of salvage value and asset retirement obligations, is computed primarily using the straight-line method over the estimated useful lives of the assets, which are determined on a composite or component basis. Maintenance and repairs are charged to expense as incurred. Capital spare parts, including rotable spare parts, are included in electric generation and distribution assets. If the spare part is considered a component, it is depreciated over its useful life after the part is placed in service. If the spare part is deemed part of a composite asset, the part is depreciated over the composite useful life even when being held as a spare part.

 

*
(5) AGILENT TECHNOLOGIES INC (SEC Filing, XBRL), Form: 10-K; Filing date: 12/20/2010; SIC code:3825 (INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS)
Network: http://agilent.com/role/OverviewBasisOfPresentationAndSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

        Property, plant and equipment.    Property, plant and equipment are stated at cost less accumulated depreciation. Additions, improvements and major renewals are capitalized; maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation and amortization are removed from our general ledger, and the resulting gain or loss is reflected in the consolidated statement of operations. Buildings and improvements are depreciated over the lesser of their useful lives or the remaining term of the lease and machinery and equipment over three to ten years. We currently use the straight-line method to depreciate assets.

*
(6) ALCOA INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/17/2011; SIC code:3350 (ROLLING DRAWING & EXTRUDING OF NONFERROUS METALS)
Network: http://www.alcoa.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(7) ALLEGHENY TECHNOLOGIES INCORPORATED (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:3317 (STEEL PIPE & TUBES)
Network: http://www.ATImetals.com/role/DisclosureSignificantAccountingPoliciesPolicies
[Table]:

Long-Lived Assets

 

Property, plant and equipment are recorded at cost, including capitalized interest, and includes long-lived assets acquired under capital leases. The principal method of depreciation adopted for all property placed into service after July 1, 1996 is the straight-line method. For buildings and equipment acquired prior to July 1, 1996, depreciation is computed using a combination of accelerated and straight-line methods. Property, plant and equipment associated with the Company's titanium sponge facility in Rowley, UT is being depreciated utilizing the units of production method of depreciation, which the Company believes provides a better matching of costs and revenues. The Company periodically reviews estimates of useful life and production capacity assigned to new and in service assets. Significant enhancements, including major maintenance activities that extend the lives of property and equipment, are capitalized. Costs related to repairs and maintenance are charged to expense in the period incurred. The cost and related accumulated depreciation of property and equipment retired or disposed of are removed from the accounts and any related gains or losses are included in income.

 

The Company monitors the recoverability of the carrying value of its long-lived assets. An impairment charge is recognized when an indicator of impairment occurs and the expected net undiscounted future cash flows from an asset's use (including any proceeds from disposition) are less than the asset's carrying value and the asset's carrying value exceeds its fair value. Assets to be disposed of by sale are stated at the lower of their fair values or carrying amounts and depreciation is no longer recognized.

 

*
(8) ALLSTATE CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:6331 (FIRE, MARINE & CASUALTY INSURANCE)
Network: http://www.allstate.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property and equipment

       Property and equipment is carried at cost less accumulated depreciation. Included in property and equipment are capitalized costs related to computer software licenses and software developed for internal use. These costs generally consist of certain external payroll and payroll related costs. Certain facilities and equipment held under capital leases are also classified as property and equipment with the related lease obligations recorded as liabilities. Property and equipment depreciation is calculated using the straight-line method over the estimated useful lives of the assets, generally 3 to 10 years for equipment and 40 years for real property. Depreciation expense is reported in operating costs and expenses. Accumulated depreciation on property and equipment was $2.41 billion and $2.32 billion as of December 31, 2010 and 2009, respectively. Depreciation expense on property and equipment was $239 million, $256 million and $240 million in 2010, 2009 and 2008, respectively. The Company reviews its property and equipment for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

*
(9) ALTERA CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/16/2011; SIC code:3674 (SEMICONDUCTORS & RELATED DEVICES)
Network: http://www.altera.com/role/Note2SignificantAccountingPoliciesPolicies
[Table]:
PROPERTY AND EQUIPMENT  |  Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three to seven years are used for equipment and office furniture, up to forty years for buildings and sixty years for land rights. Leasehold improvements and assets recorded under capital leases are amortized over the shorter of the remaining lease term or the estimated useful life of the asset. Property and equipment also includes costs related to the development of internal use software.
*
(10) AMEREN CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:4931 (ELECTRIC & OTHER SERVICES COMBINED)
Network: http://www.ameren.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(11) AMERICAN ELECTRIC POWER CO INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:4911 (ELECTRIC SERVICES)
Network: http://www.aep.com/role/DisclosureOrganizationAndSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property, Plant and Equipment and Equity Investments

 

Regulated

 

Electric utility property, plant and equipment for our rate-regulated operations are stated at original purchase cost. Additions, major replacements and betterments are added to the plant accounts. Normal and routine retirements from the plant accounts, net of salvage, are charged to accumulated depreciation under the group composite method of depreciation. The group composite method of depreciation assumes that on average, asset components are retired at the end of their useful lives and thus there is no gain or loss. The equipment in each primary electric plant account is identified as a separate group. Under the group composite method of depreciation, continuous interim routine replacements of items such as boiler tubes, pumps, motors, etc. result in the original cost, less salvage, being charged to accumulated depreciation. The depreciation rates that are established take into account the past history of interim capital replacements and the amount of salvage received. These rates and the related lives are subject to periodic review. Removal costs are charged to regulatory liabilities. The costs of labor, materials and overhead incurred to operate and maintain our plants are included in operating expenses.

 

Long-lived assets are required to be tested for impairment when it is determined that the carrying value of the assets may no longer be recoverable or when the assets meet the held for sale criteria under the accounting guidance for “Impairment or Disposal of Long-Lived Assets.” Equity investments are required to be tested for impairment when it is determined there may be an other-than-temporary loss in value.

 

The fair value of an asset or investment is the amount at which that asset or investment could be bought or sold in a current transaction between willing parties, as opposed to a forced or liquidation sale. Quoted market prices in active markets are the best evidence of fair value and are used as the basis for the measurement, if available. In the absence of quoted prices for identical or similar assets or investments in active markets, fair value is estimated using various internal and external valuation methods including cash flow analysis and appraisals.

 

Nonregulated

 

Our nonregulated operations generally follow the policies of our cost-based rate-regulated operations listed above but with the following exceptions. Property, plant and equipment of nonregulated operations and equity investments (included in Deferred Charges and Other Noncurrent Assets) are stated at fair value at acquisition (or as adjusted for any applicable impairments) plus the original cost of property acquired or constructed since the acquisition, less disposals. Normal and routine retirements from the plant accounts, net of salvage, are charged to accumulated depreciation for most nonregulated operations under the group composite method of depreciation. For nonregulated plant assets, a gain or loss would be recorded if the retirement is not considered an interim routine replacement. Removal costs are charged to expense.

*
(12) AMERICAN EXPRESS CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6199 (FINANCE SERVICES)
Network: http://americanexpress.com/role/BasisOfPresentationPolicies
[Table]:
 
Premises and Equipment
Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated useful lives of assets, which range from 3 to 8 years for equipment. Premises are depreciated based upon their estimated useful life at the acquisition date, which generally ranges from 40 to 60 years.
Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility or the economic life of the improvement, which ranges from 5 to 10 years. The Company maintains operating leases worldwide for facilities and equipment. Rent expense for facility leases is recognized ratably over the lease term, and is calculated to include adjustments for rent concessions, rent escalations and leasehold improvement allowances. The Company accounts for lease restoration obligations in accordance with applicable GAAP, which requires recognition of the fair value of restoration liabilities when incurred, and amortization of capitalized restoration costs over the lease term.
*
(13) AMERICAN TOWER CORP /MA/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:4899 (COMMUNICATIONS SERVICES, NEC)
Network: http://www.americantower.com/role/DisclosureBusinessAndSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property and Equipment—Property and equipment are recorded at cost or, in the case of acquired properties, at estimated fair value. Cost for self-constructed towers includes direct materials and labor, indirect costs associated with construction and capitalized interest. Expenditures for repairs and maintenance are expensed as incurred. Betterments and improvements that extend an asset's useful life or enhance capacity are capitalized.

Depreciation is recorded using the straight-line method over the assets' estimated useful lives. Towers and related assets on leased land are depreciated over the shorter of the term of the ground lease (including renewal options) or the estimated useful life of the tower.

Towers or assets acquired through capital leases are reflected in property and equipment at the present value of future minimum lease payments or the fair market value of the leased asset at the inception of the lease. Property and equipment, network location intangibles and assets held under capital leases are amortized over the shorter of the lease term or the estimated useful lives of the assets for periods up to twenty years.

*
(14) AMERIPRISE FINANCIAL INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6282 (INVESTMENT ADVICE)
Network: http://www.ameriprise.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company generally uses the straight-line method of depreciation and amortization over periods ranging from three to 30 years. At December 31, 2010 and 2009, land, buildings, equipment and software were $693 million and $728 million, respectively, net of accumulated depreciation of $1.1 billion and $1.0 billion, respectively. Depreciation and amortization expense for the years ended December 31, 2010, 2009 and 2008 was $167 million, $182 million and $169 million, respectively.

*
(15) AMETEK INC/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:3621 (MOTORS & GENERATORS)
Network: http://ametek.com/role/SignificantAccountingPoliciesPolicies
[Table]:
 
Property, Plant and Equipment
 
Property, plant and equipment are stated at cost. Expenditures for additions to plant facilities, or that extend their useful lives, are capitalized. The cost of minor tools, jigs and dies, and maintenance and repairs is charged to operations as incurred. Depreciation of plant and equipment is calculated principally on a straight-line basis over the estimated useful lives of the related assets. The range of lives for depreciable assets is generally three to ten years for machinery and equipment, five to 27 years for leasehold improvements and 25 to 50 years for buildings.
*
(16) AMGEN INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:2836 (BIOLOGICAL PRODUCTS, (NO DISGNOSTIC SUBSTANCES))
Network: http://amgen.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property, plant and equipment, net
 
Property, plant and equipment is recorded at historical cost, net of accumulated depreciation, amortization and, if applicable, impairment charges. We review our property, plant and equipment assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
 
Depreciation of buildings, equipment, furniture and fixtures is provided over their estimated useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. Useful lives by asset category are as follows:
 
         
Asset Category   Years
Buildings and improvements
    10-40  
Manufacturing equipment
    5-12  
Laboratory equipment
    8-12  
Furniture, fixtures and other assets
    3-15  
 
See Note 12, Property, plant and equipment.
 
*
(17) AMPHENOL CORP /DE/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:3678 (ELECTRONIC CONNECTORS)
Network: http://www.amphenol.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Depreciable Assets

 

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the respective asset lives determined on a composite basis by asset group or on a specific item basis using the estimated useful lives of such assets which range from 3 to 12 years for machinery and equipment and 20 to 40 years for buildings. Leasehold building improvements are depreciated over the shorter of the lease term or estimated useful life. It is the Company’s policy to periodically review fixed asset lives.  Depreciation expense is included in both costs of sales and selling, general and administrative expense in the Consolidated Statements of Income based on the specific categorization and use of the underlying asset being depreciated. In accordance with the Property, Plant and Equipment topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), the Company assesses the impairment of property and equipment subject to depreciation, whenever events or changes in circumstances indicate the carrying value may not be recoverable. Factors the Company considers important, which could trigger an impairment review, include significant changes in the manner of our use of the asset, significant changes in historical trends in operating performance, significant changes in projected operating performance, and significant negative economic trends. There have been no significant impairments recorded as a result of such reviews during any of the periods presented.

 

*
(18) ANADARKO PETROLEUM CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:1311 (CRUDE PETROLEUM & NATURAL GAS)
Network: http://www.anadarko.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]: us-gaap:StatementTable

Properties and Equipment   Properties and equipment are stated at cost less accumulated depreciation, depletion and amortization expense (DD&A). Costs of improvements that appreciably improve the efficiency or productive capacity of existing properties or extend their lives are capitalized. Maintenance and repairs are expensed as incurred. Upon retirement or sale, the cost of properties and equipment, net of the related accumulated DD&A, is removed and, if appropriate, gain or loss is recognized in gains (losses) on divestitures and other, net.

 

Oil and Gas Properties   The Company applies the successful efforts method of accounting for oil and gas properties. Exploration costs such as exploratory geological and geophysical costs, delay rentals and exploration overhead are charged against earnings as incurred. Acquisition costs and costs of drilling exploratory wells are capitalized pending determination of whether proved reserves can be attributed to the area as a result of drilling the well. If management determines that commercial quantities of hydrocarbons have not been discovered, capitalized costs associated with exploratory wells are charged to exploration expense. Acquisition costs of unproved properties are assessed for impairment during the holding period and transferred to proved oil and gas properties to the extent the costs are associated with successful exploration activities. Significant undeveloped leases are assessed individually for impairment, based on the Company's current exploration plans, and a valuation allowance is provided if impairment is indicated. Unproved oil and gas properties with individually insignificant lease acquisition costs are amortized on a group basis (thereby establishing a valuation allowance) over the average terms of the leases, at rates that provide for full amortization of unsuccessful leases upon lease expiration or abandonment. Costs of expired or abandoned leases are charged against the valuation allowance, while costs of productive leases are transferred to proved oil and gas properties. Costs of maintaining and retaining unproved properties, as well as amortization of individually insignificant leases and impairment of unsuccessful leases, are included in exploration expense.

 

Capitalized Interest   Interest is capitalized as part of the historical cost of developing and constructing assets for significant projects. Significant oil and gas investments in unproved properties, significant exploration and development projects for which DD&A is not currently recognized, and exploration or development activities that are in progress qualify for interest capitalization. Interest is capitalized until the asset is ready for service. Capitalized interest is determined by multiplying the Company's weighted-average borrowing cost on debt by the average amount of qualifying costs incurred. Once an asset subject to interest capitalization is completed and placed in service, the associated capitalized interest is expensed through depreciation or impairment, along with other capitalized costs related to that asset.

Asset Retirement Obligations   Asset retirement obligations (AROs) associated with the retirement of tangible long-lived assets are recognized as liabilities with an increase to the carrying amounts of the related long-lived assets in the period incurred. The cost of the tangible asset, including the asset retirement cost, is depreciated over the useful life of the asset. AROs are recorded at estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligations discounted at the Company's credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value. If estimated future costs of AROs change, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated AROs can result from changes in retirement cost estimates, revisions to estimated inflation rates and changes in the estimated timing of abandonment.

 

Impairments   Properties and equipment, net of salvage value, are reviewed for impairment at the lowest level for which identifiable cash flows are independent of cash flows from other assets, and when facts and circumstances indicate that net book values may not be recoverable. In performing this review, an undiscounted cash flow test is performed on the impairment unit. If the sum of the undiscounted estimated future net cash flows is less than the net book value of the property, an impairment loss is recognized for the excess, if any, of the property's net book value over its estimated fair value.

 

Depreciation, Depletion and Amortization   Costs of drilling and equipping successful wells, costs to construct or acquire facilities other than offshore platforms and associated asset retirement costs are depreciated using the unit-of-production (UOP) method based on total estimated proved developed oil and gas reserves. Costs of acquiring proved properties, including leasehold acquisition costs transferred from unproved properties and costs to construct or acquire offshore platforms and associated asset retirement costs, are depleted using the UOP method based on total estimated proved developed and undeveloped reserves. Mineral properties are also depleted using the UOP method. All other properties are stated at historical acquisition cost, net of impairments, and depreciated using the straight-line method over the useful lives of the assets, which range from 3 to 15 years for furniture and equipment, up to 40 years for buildings, and up to 47 years for gathering facilities.

*
(19) AVON PRODUCTS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:2844 (PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS)
Network: http://www.avon.com/taxonomy/role/DisclosureDescriptionOfBusinessAndSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable

Property, Plant and Equipment

Property, plant and equipment are stated at cost and are depreciated using a straight-line method over the estimated useful lives of the assets. The estimated useful lives generally are as follows: buildings, 45 years; land improvements, 20 years; machinery and equipment, 15 years; and office equipment, five to ten years. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the asset. Upon disposal of property, plant and equipment, the cost of the assets and the related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in earnings. Costs associated with repair and maintenance activities are expensed as incurred. We evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset.

 

We capitalize interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the related asset and depreciated over the useful lives of the assets. We capitalized interest of $4.7 for 2010, $4.9 for 2009, and $4.9 for 2008.

*
(20) BAKER HUGHES INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:3533 (OIL & GAS FIELD MACHINERY & EQUIPMENT)
Network: http://bakerhughes.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property, Plant and Equipment and Accumulated Depreciation
     Property, plant and equipment (“PP&E”) is stated at cost less accumulated depreciation, which is generally provided by using the straight-line method over the estimated useful lives of the individual assets. Significant improvements and betterments are capitalized if they extend the useful life of the asset. We manufacture a substantial portion of our rental tools and equipment and the cost of these items, which includes direct and indirect manufacturing costs, are capitalized and carried in inventory until the tool is completed. Once the tool has been completed, the cost of the tool is reflected in capital expenditures and the tool is classified as rental tools and equipment in PP&E. Maintenance and repairs are charged to expense as incurred. The capitalized costs of computer software developed or purchased for internal use are classified in machinery and equipment in PP&E.
*
(21) Bank of New York Mellon CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6022 (STATE COMMERCIAL BANKS)
Network: http://www.bnymellon.com/taxonomy/role/NotesToFinancialStatementsSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable

Premises and equipment

Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful life of the owned asset and, for leasehold improvements, over the lesser of the remaining term of the leased facility or the estimated economic life of the improvement. For owned and capitalized assets, estimated useful lives range from 2 to 40 years. Maintenance and repairs are charged to expense as incurred, while major improvements are capitalized and amortized to operating expense over their identified useful lives.

*
(22) BARD C R INC /NJ/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:3841 (SURGICAL & MEDICAL INSTRUMENTS & APPARATUS)
Network: http://www.crbard.com/taxonomy/role/DisclosureSignificantAccountingPoliciesPolicy
[Table]:

Depreciation - Depreciation is provided over the estimated useful lives of depreciable assets using the straight-line method. The estimated useful lives primarily range from three to 40 years for buildings and improvements and three to 20 years for machinery and equipment. Depreciation expense was $51.8 million in 2010, $51.0 million in 2009 and $51.3 million in 2008.

*
(23) BAXTER INTERNATIONAL INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:3841 (SURGICAL & MEDICAL INSTRUMENTS & APPARATUS)
Network: http://baxter.com/role/SummaryOfSignificantAccountingPoliciesDetails
[Table]:
 
Property, Plant and Equipment, Net
 
                 
as of December 31 (in millions)   2010     2009  
   
 
Land
  $ 183     $ 163  
Buildings and leasehold improvements
    2,063       1,921  
Machinery and equipment
    6,330       5,962  
Equipment with customers
    1,105       1,039  
Construction in progress
    910       975  
 
 
Total property, plant and equipment, at cost
    10,591       10,060  
Accumulated depreciation and amortization
    (5,331 )     (4,901 )
 
 
Property, plant and equipment (PP&E), net
  $ 5,260     $ 5,159  
 
 
 
Depreciation and amortization expense is calculated using the straight-line method over the estimated useful lives of the related assets, which range from 20 to 50 years for buildings and improvements and from three to 15 years for machinery and equipment. Leasehold improvements are amortized over the life of the related facility lease (including any renewal periods, if appropriate) or the asset, whichever is shorter. Baxter capitalizes in machinery and equipment certain computer software and software development costs incurred in connection with developing or obtaining software for internal use. Capitalized software costs are amortized on a straight-line basis over the estimated useful lives of the software. Straight-line and accelerated methods of depreciation are used for income tax purposes. Depreciation and amortization expense was $592 million in 2010, $557 million in 2009 and $553 million in 2008. Repairs and maintenance expense was $254 million in 2010, $251 million in 2009 and $242 million in 2008.
 
*
(24) BB&T CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:6021 (NATIONAL COMMERCIAL BANKS)
Network: http://www.bbt.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(25) BERKSHIRE HATHAWAY INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6331 (FIRE, MARINE & CASUALTY INSURANCE)
Network: http://www.berkshirehathaway.com/2010-12-31/role/SignificantAccountingPoliciesPolicies
[Table]: brka:SignificantAccountingPoliciesTable
 
(i)
Property, plant and equipment
 
Additions to property, plant and equipment are recorded at cost. The cost of major additions and betterments are capitalized, while the cost of replacements, maintenance and repairs, that do not improve or extend the useful lives of the related assets are expensed as incurred. Interest over the construction period is capitalized as a component of cost of constructed assets. The cost of constructed assets of certain of our regulated utility and energy subsidiaries that are subject to ASC 980 Regulated Operations also includes an equity allowance for funds used during construction. Also see Note 1(p).
 
Depreciation is provided principally on the straight-line method over estimated useful lives. Depreciation of assets of regulated utility and energy subsidiaries is provided over recovery periods based on composite asset class lives. Railroad properties are depreciated using the group method in which a single depreciation rate is applied to the gross investment in a particular class of property, despite differences in the service life or salvage value of individual property units within the same class.
 
We evaluate property, plant and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable or the assets are being held for sale. Upon the occurrence of a triggering event, we review the asset to assess whether the estimated undiscounted cash flows expected from the use of the asset plus residual value from the ultimate disposal exceeds the carrying value of the asset. If the carrying value exceeds the estimated recoverable amounts, we write down the asset to the estimated fair value. Impairment losses are reflected in the Consolidated Statements of Earnings, except with respect to impairments of assets of certain domestic regulated utility and energy subsidiaries where impairment losses are offset by the establishment of a regulatory asset to the extent recovery in future rates is probable.
 
Our railroad business is very capital intensive and its large base of homogenous, network-type assets turns over on a continuous basis. Each year, a capital program is developed for the replacement of assets and for the acquisition or construction of assets to enhance the efficiency of operations, gain strategic benefit or provide new service offerings to customers. Assets purchased or constructed throughout the year are capitalized if they meet applicable minimum units of property criteria. Normal repairs and maintenance are charged to operating expense as incurred, while costs incurred that extend the useful life of an asset, improve the safety of our operations, or improve operating efficiency are capitalized. Rail grinding costs are expensed as incurred.
*
(26) BIOGEN IDEC INC. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/4/2011; SIC code:2836 (BIOLOGICAL PRODUCTS, (NO DISGNOSTIC SUBSTANCES))
Network: http://biogenidec.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
 
Property, plant and equipment are carried at cost, subject to review for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The cost of normal, recurring, or periodic repairs and maintenance activities related to property, plant and equipment are expensed as incurred. The cost for planned major maintenance activities, include the related acquisition or construction of assets, is capitalized if the repair will result in future economic benefits.
 
Interest costs incurred during the construction of major capital projects are capitalized until the underlying asset is ready for its intended use, at which point the interest costs are amortized as depreciation expense over the life of the underlying asset. We also capitalize certain direct and incremental costs associated with the validation effort required for licensing by regulatory agencies of manufacturing equipment for the production of a commercially approved drug. These costs include primarily direct labor and material and are incurred in preparing the equipment for its intended use. The validation costs are amortized over the life of the related equipment.
 
We also capitalize certain internal use computer software development costs. If the software is an integral part of production assets, these costs are included in machinery and equipment and are amortized on a straight-line basis over the estimated useful lives of the related software, which generally range from three to five years.
 
We generally depreciate or amortize the cost of our property, plant and equipment using the straight-line method over the estimated useful lives of the respective assets, which are summarized as follows:
 
     
Asset Category   Useful Lives
 
Land
  Not depreciated
Buildings
  15 to 40 years
Leasehold Improvements
  Lesser of the useful life or the term of the respective lease
Furniture and Fixtures
  7 years
Machinery and Equipment
  6 to 15 years
Computer Software and Hardware
  3 to 5 years
 
When we dispose of property, plant and equipment, we remove the associated cost and accumulated depreciation from the related accounts on our consolidated balance sheet and include any resulting gain or loss in our consolidated statement of income.
*
(27) BlackRock Inc. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6211 (SECURITY BROKERS, DEALERS & FLOTATION COMPANIES)
Network: http://www.blackrock.com/role/DisclosureSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(28) BOEING CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/9/2011; SIC code:3721 (AIRCRAFT)
Network: http://www.boeing.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(29) BORGWARNER INC. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/10/2011; SIC code:3714 (MOTOR VEHICLE PARTS & ACCESSORIES)
Network: http://borgwarner.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
 
Property, plant and equipment and depreciation Property, plant and equipment are valued at cost less accumulated depreciation. Expenditures for maintenance, repairs and renewals of relatively minor items are generally charged to expense as incurred. Renewals of significant items are capitalized. Depreciation is computed generally on a straight-line basis over the estimated useful lives of the assets. Useful lives for buildings range from 15 to 40 years and useful lives for machinery and equipment range from 3 to 12 years. For income tax purposes, accelerated methods of depreciation are generally used. The Company’s property, plant and equipment are all held for use at December 31, 2010 and 2009.
 
See Note 5 to the Consolidated Financial Statements for more information on property, plant and equipment and depreciation.
*
(30) BRISTOL MYERS SQUIBB CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/18/2011; SIC code:2834 (PHARMACEUTICAL PREPARATIONS)
Network: http://www.bms.com/taxonomy/role/DisclosureAccountingPoliciesPolicy
[Table]:

Property, Plant and Equipment and Depreciation

Expenditures for additions, renewals and improvements are capitalized at cost. Depreciation is generally computed on a straight-line method based on the estimated useful lives of the related assets. The estimated useful lives of the major classes of depreciable assets are as follows:

 

Buildings

     20 – 50 years   

Machinery, equipment and fixtures

     3 – 20 years   
*
(31) BROADCOM CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/2/2011; SIC code:3674 (SEMICONDUCTORS & RELATED DEVICES)
Network: http://broadcom.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
 
Property and Equipment
 
Property and equipment are carried at cost. Depreciation and amortization are provided using the straight-line method over the assets’ estimated remaining useful lives, ranging from one to ten years. Depreciation and amortization of leasehold improvements are computed using the shorter of the remaining lease term or ten years.
*
(32) CAMERON INTERNATIONAL CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:3533 (OIL & GAS FIELD MACHINERY & EQUIPMENT)
Network: http://c-a-m.com/role/SummaryOfMajorAccountingPoliciesPolicies
[Table]:
Plant and Equipment — Property, plant and equipment, both owned and under capital lease, are carried at cost. Maintenance and repair costs are expensed as incurred. The cost of renewals, replacements and betterments is capitalized. The Company capitalizes software developed or obtained for internal use. Accordingly, the cost of third-party software, as well as the cost of third-party and internal personnel that are directly involved in application development activities, are capitalized during the application development phase of new software systems projects. Costs during the preliminary project stage and post-implementation stage of new software systems projects, including data conversion and training costs, are expensed as incurred. Depreciation and amortization is provided over the estimated useful lives of the related assets, or in the case of assets under capital leases, over the related lease term, if less, using the straight-line method.
*
(33) CARNIVAL CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 1/31/2011; SIC code:4400 (WATER TRANSPORTATION)
Network: http://www.carnival.com/taxonomy/role/NotesToFinancialStatementsSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable

Property and Equipment

Property and equipment are stated at cost. Depreciation and amortization were computed using the straight-line method over our estimates of average useful lives and residual values, as a percentage of original cost, as follows:

 

     Years   

Residual

Values

Ships

   30    15%

Ship improvements

   3-28    0% or 15%

Buildings and improvements

   5-35    0-10%

Computer hardware and software

   3-7    0-10%

Transportation equipment and other

   2-20    0-10%

Leasehold improvements, including port facilities

   Shorter of lease term
or related asset life
   -

Ship improvement costs that we believe add value to our ships, such as those incurred for major refurbishments, are capitalized to the ships and depreciated over their or the ships’ estimated remaining useful life, whichever is shorter, while costs of repairs and maintenance, including minor improvement costs, are charged to expense as incurred. We capitalize interest as part of acquiring ships and other capital projects during their construction period. The specifically identified or estimated cost and accumulated depreciation of previously capitalized ship components are written-off upon retirement, which may result in a loss on disposal that is classified within other ship operating expenses in the accompanying Consolidated Statements of Income.

Dry-dock costs primarily represent planned major maintenance activities that are incurred when a ship is taken out of service for scheduled maintenance. These costs are expensed as incurred and included within other ship operating expenses in the accompanying Consolidated Statements of Income.

We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of our asset based on our estimate of its undiscounted future cash flows. If these estimated undiscounted future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the excess, if any, of the asset’s carrying value over its estimated fair value.

*
(34) CBS Corporation (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:4833 (TELEVISION BROADCASTING STATIONS)
Network: http://www.cbscorporation.com/role/DisclosureBasisOfPresentationAndSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property and Equipment—Property and equipment is stated at cost. Depreciation is computed by the straight-line method over estimated useful lives as follows:

 Buildings (including capital leases) 20 to 40 years
 Leasehold Improvements 4 to 15 years
 Advertising Structures 5 to 20 years
 Equipment and other (including capital leases) 3 to 20 years
*
(35) CHUBB CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:6331 (FIRE, MARINE & CASUALTY INSURANCE)
Network: http://chubb.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
(g)  Property and Equipment
 
Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.
*
(36) CIGNA Corporation (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6324 (HOSPITAL & MEDICAL SERVICE PLANS)
Network: http://www.ci.com/role/DocumentAccountingPoliciesPolicies
[Table]:

  • Property and Equipment

 

Property and equipment is carried at cost less accumulated depreciation. When applicable, cost includes interest, real estate taxes and other costs incurred during construction. Also included in this category is internal-use software that is acquired, developed or modified solely to meet the Company's internal needs, with no plan to market externally. Costs directly related to acquiring, developing or modifying internal-use software are capitalized.

 

The Company calculates depreciation and amortization principally using the straight-line method generally based on the estimated useful life of each asset as follows: buildings and improvements, 10 to 40 years; purchased software, one to five years; internally developed software; three to seven years and furniture and equipment (including computer equipment); three to 10 years. Improvements to leased facilities are depreciated over the remaining lease term or the estimated life of the improvement. If the Company determines the carrying value of a long-lived asset is not recoverable, an impairment charge is recorded. See Note 9 for additional information.

 

*
(37) CITRIX SYSTEMS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:7372 (SERVICES-PREPACKAGED SOFTWARE)
Network: http://www.citrix.com/taxonomy/role/DisclosureSignificantAccountingPoliciesPolicy
[Table]:

Property and Equipment

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is generally three years for computer equipment, software, office equipment and furniture, the lesser of the lease term or five years for leasehold improvements, which is the estimated useful life, seven years for the Company's enterprise resource planning system and 40 years for buildings.

 

During 2010 and 2009, the Company retired $8.9 million and $42.4 million, respectively, in property and equipment that were no longer in use. At the time of retirement, the remaining net book value of these assets was immaterial and no material asset retirement obligations were associated with them.

Property and equipment consist of the following:

 

     December 31,  
     2010     2009  
     (In thousands)  

Buildings

   $ 72,100      $ 72,100   

Computer equipment

     158,947        147,074   

Software

     187,842        155,350   

Equipment and furniture

     39,722        30,208   

Leasehold improvements

     104,312        90,625   
                
     562,923        495,357   

Less accumulated depreciation and amortization

     (328,325     (263,538

Land

     15,884        15,884   
                
   $ 250,482      $ 247,703   
              
*
(38) CLIFFS NATURAL RESOURCES INC. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/17/2011; SIC code:1000 (METAL MINING)
Network: http://cliffsnaturalresources.com/taxonomy/role/DisclosureBusinessSummaryAndSignificantAccountingPoliciesPolicy
[Table]:

Property, Plant and Equipment

North American Iron Ore

North American Iron Ore properties are stated at cost. Depreciation of plant and equipment is computed principally by the straight-line method based on estimated useful lives, not to exceed the estimated economic iron ore reserves. Northshore, United Taconite and our mines in Michigan use the double declining balance method of depreciation for certain mining equipment. Depreciation is provided over the following estimated useful lives:

 

         

Asset Class

  

Basis

  

Life

Buildings

   Straight line    45 Years

Mining equipment

   Straight line    10 to 20 Years

Processing equipment

   Straight line    15 to 45 Years

Information technology

   Straight line    2 to 7 Years

Depreciation is not curtailed when operations are temporarily idled.

North American Coal

North American Coal properties are stated at cost. Depreciation is provided over the estimated useful lives, not to exceed the mine lives and is calculated by the straight-line method. Depreciation is provided over the following estimated useful lives:

 

         

Asset Class

  

Basis

  

Life

Buildings

   Straight line    30 Years

Mining equipment

   Straight line    2 to 22 Years

Processing equipment

   Straight line    2 to 30 Years

Information technology

   Straight line    2 to 3 Years

Asia Pacific Iron Ore

Our Asia Pacific Iron Ore properties are stated at cost. Depreciation is calculated by the straight-line method or production output basis provided over the following estimated useful lives:

 

         

Asset Class

  

Basis

  

Life

Plant and equipment

   Straight line    5 -10 Years

Plant and equipment and mine assets

   Production output    10 Years

Motor vehicles, furniture & equipment

   Straight line    3 5 Years

 

The following table indicates the value of each of the major classes of our consolidated depreciable assets as of December 31, 2010 and 2009:

 

                 
     (In Millions)  
     December 31,  
     2010     2009  

Land rights and mineral rights

   $ 3,019.9      $ 1,877.3   

Office and information technology

     60.4        53.7   

Buildings

     107.6        77.3   

Mining equipment

     628.5        381.0   

Processing equipment

     658.8        499.5   

Railroad equipment

     122.9        92.2   

Electric power facilities

     54.4        60.0   

Port facilities

     64.0        52.5   

Interest capitalized during construction

     19.4        18.9   

Land improvements

     25.0        22.4   

Other

     36.0        41.6   

Construction in progress

     140.0        81.7   
                  
       4,936.9        3,258.1   

Allowance for depreciation and depletion

     (957.7     (665.5
                  
     $ 3,979.2      $ 2,592.6   
                  

We recorded depreciation expense of $165.4 million, $120.6 million, and $113.5 million on the Statements of Consolidated Operations for the years ended December 31, 2010, 2009, and 2008, respectively.

The costs capitalized and classified as Land rights and mineral rights represent lands where we own the surface and/or mineral rights. The value of the land rights is split between surface only, surface and minerals, and minerals only.

Our North American Coal operation leases coal mining rights from third parties through lease agreements. The lease agreements are for varying terms and extend through the earlier of their lease termination date or until all merchantable and mineable coal has been extracted. Our interest in coal reserves and resources was valued using a discounted cash flow method. The fair value was estimated based upon the present value of the expected future cash flows from coal operations over the life of the reserves.

Our Asia Pacific Iron Ore, Wabush, and United Taconite operation's interest in iron ore reserves and resources was valued using a discounted cash flow method. The fair value was estimated based upon the present value of the expected future cash flows from iron ore operations over the economic lives of the mines.

The net book value of the land rights and mineral rights as of December 31, 2010 and 2009 is as follows:

 

                 
     (In Millions)  
     December 31,  
     2010      2009  

Land rights

   $ 36.8       $ 29.0   
                   

Mineral rights:

                 

Cost

   $ 2,983.1       $ 1,848.3   

Less depletion

     376.4         243.8   
                   

Net mineral rights

   $ 2,606.7       $ 1,604.5   
                   

 

Accumulated depletion relating to mineral rights, which was recorded using the unit-of-production method, is included in Allowances for depreciation and depletion. We recorded depletion expense of $95.5 million, $68.1 million and $66.6 million on the Statements of Consolidated Operations for the years ended December 31, 2010, 2009 and 2008, respectively.

We review iron ore and coal reserves based on current expectations of revenues and costs, which are subject to change. Iron ore and coal reserves include only proven and probable quantities which can be economically and legally mined and processed utilizing existing technology.

*
(39) CME GROUP INC. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6200 (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES)
Network: http://www.cmegroup.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(40) COCA COLA CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:2080 (BEVERAGES)
Network: http://www.coca-cola.com/role/DisclosureBusinessAndSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property, Plant and Equipment

Property, plant and equipment are stated at cost. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation is recorded principally by the straight-line method over the estimated useful lives of our assets, which generally have the following ranges: buildings and improvements: 40 years or less; machinery, equipment and vehicle fleet: 20 years or less; cold-drink equipment: 13 years or less; and containers: 12 years or less. Land is not depreciated, and construction in progress is not depreciated until ready for service. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, including renewals that are deemed to be reasonably assured, or the estimated useful life of the improvement. Depreciation expense, including the depreciation expense of assets under capital lease, totaled $1,188 million, $1,005 million and $993 million in 2010, 2009 and 2008, respectively. Amortization expense for leasehold improvements totaled $16 million, $18 million and $19 million in 2010, 2009 and 2008, respectively.

Certain events or changes in circumstances may indicate that the recoverability of the carrying amount of property, plant and equipment should be assessed, including, among others, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses. When such events or changes in circumstances are present, we estimate the future cash flows expected to result from the use of the asset (or asset group) and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. We use a variety of methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models, which are consistent with the assumptions we believe hypothetical marketplace participants would use. Refer to Note 7.

*
(41) COCA-COLA ENTERPRISES, INC. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/14/2011; SIC code:2086 (BOTTLED & CANNED SOFT DRINKS & CARBONATED WATERS)
Network: http://www.cokecce.com/taxonomy/role/DisclosureBusinessAndSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property, Plant, and Equipment

 

Property, plant, and equipment are recorded at cost. Major property additions, replacements, and betterments are capitalized, while maintenance and repairs that do not extend the useful life of an asset or add new functionality are expensed as incurred. Depreciation is recorded using the straight-line method over the respective estimated useful lives of our assets. Our cold drink equipment and containers, such as reusable crates, shells, and bottles, are depreciated using the straight-line method over the estimated useful life of each group of equipment, as determined using the group-life method. Under this method, we do not recognize gains or losses on the disposal of individual units of equipment when the disposal occurs in the normal course of business. We capitalize the costs of refurbishing our cold drink equipment and depreciate those costs over the estimated period until the next scheduled refurbishment or until the equipment is retired. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful life of the improvement. The following table summarizes the classification of depreciation and amortization expense in our Consolidated Statements of Operations for the periods presented:

 

                         

Statements of Operations Location


   2010

     2009

     2008

 

Selling, delivery, and administrative expenses

   $ 169       $ 177       $ 192   

Cost of sales

     95         103         102   
    


  


  


Total depreciation and amortization

   $ 264       $ 280       $ 294   
    


  


  


 

Our interests in assets acquired under capital leases are included in property, plant, and equipment and primarily relate to buildings and fleet assets. Amortization of capital lease assets is included in depreciation expense. Our interests in assets acquired under capital leases totaled $62 million as of December 31, 2010, net of accumulated amortization of $100 million. The net present value of amounts due under capital leases, including residual value guarantees, are recorded as liabilities and are included in total debt. Refer to Note 6.

 

We assess the recoverability of the carrying amount of our property, plant, and equipment when events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If we determine that the carrying amount of an asset or asset group is not recoverable based upon the expected undiscounted future cash flows of the asset or asset group, we record an impairment loss equal to the excess of the carrying amount over the estimated fair value of the asset or asset group.

 

We capitalize certain development costs associated with internal use software, including external direct costs of materials and services and payroll costs for employees devoting time to a software project. Costs incurred during the preliminary project stage, as well as costs for maintenance and training, are expensed as incurred.

 

The following table summarizes our property, plant, and equipment as of December 31, 2010 and 2009 (in millions):

 

                         
     2010

     2009

     Useful Life

 

Land

   $ 157       $ 125         n/a   

Building and improvements

     887         773         20 to 40 years   

Machinery, equipment, and containers

     1,455         1,328         3 to 20 years   

Cold drink equipment

     1,369         1,403         5 to 13 years   

Vehicle fleet

     109         100         5 to 20 years   

Furniture, office equipment, and software

     291         243         3 to 10 years   
    


  


        

Property, plant, and equipment

     4,268         3,972            

Less: Accumulated depreciation and amortization

     2,172         2,188            
    


  


        
       2,096         1,784            

Construction in process

     124         99            
    


  


        

Property, plant, and equipment, net

   $ 2,220       $ 1,883            
    


  


        

 

*
(42) COGNIZANT TECHNOLOGY SOLUTIONS CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:7371 (SERVICES-COMPUTER PROGRAMMING SERVICES)
Network: http://www.cognizant.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property and Equipment. Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on the straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. Maintenance and repairs are expensed as incurred, while renewals and betterments are capitalized. Deposits paid towards acquisition of long-lived assets and the cost of assets not put in use before the balance sheet date are disclosed under the caption "capital work-in-progress" in Note 4.

*
(43) COLGATE PALMOLIVE CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:2844 (PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS)
Network: http://colgate.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property, Plant and Equipment

Land, buildings and machinery and equipment are stated at cost. Depreciation is provided, primarily using the straight-line method, over estimated useful lives ranging from 3 to 15 years for machinery and equipment and up to 40 years for buildings.
*
(44) COMCAST CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:4841 (CABLE & OTHER PAY TELEVISION SERVICES)
Network: http://www.comcast.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property and Equipment

Property and equipment are stated at cost. We capitalize improvements that extend asset lives and expense repairs and maintenance costs as incurred. For assets that are sold or retired, we remove the applicable cost and accumulated depreciation and, unless the gain or loss on disposition is presented separately, we recognize it as a component of depreciation expense.

We capitalize the costs associated with the construction of and improvements to our cable transmission and distribution facilities and new service installations. Costs include all direct labor and materials, as well as various indirect costs. We capitalize initial customer installation costs that are directly attributable to installation of the drop, including material, labor and overhead costs, in accordance with accounting guidance related to cable television companies. All costs incurred in connection with subsequent service disconnects and reconnects are expensed as they are incurred. We record depreciation using the straight-line method over the asset's estimated useful life. See Note 7 for our significant components of property and equipment.

We evaluate the recoverability of our property and equipment whenever events or substantive changes in circumstances indicate that the carrying amount may not be recoverable or the useful life has changed. The evaluation is based on the cash flows generated by the underlying assets and profitability information, including estimated future operating results, trends or other determinants of fair value. If the total of the expected future undiscounted cash flows were less than the carrying amount of the asset, we would recognize an impairment charge for the difference between the estimated fair value and the carrying value of the asset.

*
(45) COMERICA INC /NEW/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6021 (NATIONAL COMMERCIAL BANKS)
Network: http://www.comerica.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable

Premises and Equipment

Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation, computed on the straight-line method, is charged to operations over the estimated useful lives of the assets. Estimated useful lives are generally three years to 33 years for premises that the Corporation owns and three years to eight years for furniture and equipment. Leasehold improvements are amortized over the terms of their respective leases or 10 years, whichever is shorter.

*
(46) CONSOL Energy Inc (SEC Filing, XBRL), Form: 10-K; Filing date: 2/10/2011; SIC code:1221 (BITUMINOUS COAL & LIGNITE SURFACE MINING)
Network: http://www.consolenergy.com/taxonomy/role/NotesToFinancialStatementsSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable

Property, Plant and Equipment:

Property, plant and equipment is recorded at fair value upon acquisition. Expenditures which extend the useful lives of existing plant and equipment are capitalized. Interest costs applicable to major asset additions are capitalized during the construction period. Costs of additional mine facilities required to maintain production after a mine reaches the production stage, generally referred to as “receding face costs,” are expensed as incurred; however, the costs of additional airshafts and new portals are capitalized. Planned major maintenance costs which do not extend the useful lives of existing plant and equipment are expensed as incurred.

Coal exploration costs are expensed as incurred. Coal exploration costs include those incurred to ascertain existence, location, extent or quality of ore or minerals before beginning the development stage of the mine.

Costs of developing new underground mines and certain underground expansion projects are capitalized. Underground development costs, which are costs incurred to make the mineral physically accessible, include costs to prepare property for shafts, driving main entries for ventilation, haulage, personnel, construction of airshafts, roof protection and other facilities. Costs of developing the first pit within a permitted area of a surface mine are capitalized. A surface mine is defined as the permitted mining area which includes various adjacent pits that share common infrastructure, processing equipment and a common ore body. Surface mine development costs include construction costs for entry roads, drilling, blasting and removal of overburden in developing the first cut for mountain stripping or box cuts for surface stripping. Stripping costs incurred during the production phase of a mine are expensed as incurred.

Airshafts and capitalized mine development associated with a coal reserve are amortized on a units-of-production basis as the coal is produced so that each ton of coal is assigned a portion of the unamortized costs. We employ this method to match costs with the related revenues realized in a particular period. Rates are updated when revisions to coal reserve estimates are made. Coal reserve estimates are reviewed when information becomes available that indicates a reserve change is needed, or at a minimum once a year. Any material effect from changes in estimates is disclosed in the period the change occurs. Amortization of development cost begins when the development phase is complete and the production phase begins. At an underground mine, the end of the development phase and the beginning of the production phase takes place when construction of the mine for economic extraction is substantially complete. Coal extracted during the development phase is incidental to the mine’s production capacity and is not considered to shift the mine into the production phase.

Advance mining royalties are advance payments made to lessors under terms of mineral lease agreements that are recoupable against future production using the units-of-production method. Depletion of leased coal interests is computed using the units-of-production method over proven and probable coal reserves. Advance mining royalties and leased coal interests are evaluated periodically, or at a minimum once a year, for impairment issues or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

When properties are retired or otherwise disposed, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is recognized in other income.

Gas well activity is accounted for under the successful efforts method of accounting. Costs of property acquisitions, successful exploratory or development wells, development wells and related support equipment and facilities are capitalized. Costs of unsuccessful exploratory or development wells are expensed when such wells are determined to be non-productive, or if the determination cannot be made after finding sufficient quantities of reserves to continue evaluating the viability of the project. The costs of producing properties and mineral interests are amortized using the units-of-production method. Wells and related equipment and intangible drilling costs are amortized on a units-of-production method. Units-of-production amortization rates are revised when events and circumstances indicate an adjustment is necessary, or at a minimum once a year; those revisions are accounted for prospectively as changes in accounting estimates.

 

Depreciation of plant and equipment is calculated on the straight-line method over their estimated useful lives or lease terms generally as follows:

 

     Years

Building and improvements

   10 to 45

Machinery and equipment

   3 to 25

Leasehold improvements

   Life of Lease

Costs to obtain coal lands are capitalized based on the fair value at acquisition and are amortized using the units-of-production method over all estimated proven and probable reserve tons assigned and accessible to the mine. Proven and probable coal reserves exclude non-recoverable coal reserves and anticipated processing losses. Rates are updated when revisions to coal reserve estimates are made. Coal reserve estimates are reviewed when events and circumstances indicate a reserve change is needed, or at a minimum once a year. Amortization of coal interests begins when the coal reserve is produced. At an underground mine, a ton is considered produced once it reaches the surface area of the mine. Any material effect from changes in estimates is disclosed in the period the change occurs.

Costs for purchased and internally developed software are expensed until it has been determined that the software will result in probable future economic benefits and management has committed to funding the project. Thereafter, all direct costs of materials and services incurred in developing or obtaining software, including certain payroll and benefit costs of employees associated with the project, are capitalized and amortized using the straight-line method over the estimated useful life which does not exceed seven years.

*
(47) CONSOLIDATED EDISON INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/22/2011; SIC code:4931 (ELECTRIC & OTHER SERVICES COMBINED)
Network: http://www.coned.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(48) Cooper Industries plc (SEC Filing, XBRL), Form: 10-K; Filing date: 2/22/2011; SIC code:3640 (ELECTRIC LIGHTING & WIRING EQUIPMENT)
Network: http://cooperindustries.com/role/AccountingPoliciesPolicies
[Table]:
Property, Plant and Equipment: Property, plant and equipment are stated at cost. Depreciation is provided using primarily the straight-line method over the estimated useful lives of the related assets, which in general have the following lives: buildings — 10 to 40 years; machinery and equipment — 3 to 18 years; computer hardware and software — 1 to 12 years; and tooling, dies, patterns and other — 3 to 10 years.
*
(49) CORNING INC /NY (SEC Filing, XBRL), Form: 10-K; Filing date: 2/10/2011; SIC code:3357 (DRAWING & INSULATING OF NONFERROUS WIRE)
Network: http://www.corning.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property, Net of Accumulated Depreciation

 

Land, buildings, and equipment, including precious metals, are recorded at cost.  Depreciation is based on estimated useful lives of properties using the straight-line method.  Except as described in Note 2 (Restructuring, Impairment and Other Charges and (Credits)) related to accelerated depreciation arising from restructuring programs and Note 9 (Property, Net of Accumulated Depreciation) related to the depletion of precious metals, the estimated useful lives range from 10 to 40 years for buildings and 2 to 20 years for equipment.

 

Included in the subcategory of equipment are the following types of assets (excluding precious metals):

Asset type

Range of useful life

 

 

Computer hardware and software

3 to 7 years

Manufacturing equipment

2 to 15 years

Furniture and fixtures

5 to 10 years

Transportation equipment

5 to 20 years

 

Manufacturing equipment includes certain components of production equipment that are constructed of precious metals.  These assets are not depreciated because they have very low physical losses and are repeatedly reclaimed and reused in our manufacturing process over a very long useful life.  We treat the physical loss of precious metals in the manufacturing and reclamation process as depletion and account for these losses as a period expense based on actual units lost.  Precious metals are integral to many of our glass production processes.  They are only acquired to support our operations and are not held for trading or other purposes.

*
(50) CROWN CASTLE INTERNATIONAL CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/17/2011; SIC code:4899 (COMMUNICATIONS SERVICES, NEC)
Network: http://investor.crowncastle.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(51) CUMMINS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:3510 (ENGINES & TURBINES)
Network: http://www.cummins.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property, Plant and Equipment

        We record property, plant and equipment, inclusive of assets under capital leases, at cost. We depreciate the cost of the majority of engine production equipment using a modified units-of-production method, which is based upon units produced subject to a minimum level. We depreciate the cost of all other equipment using the straight-line method with depreciable lives ranging from 20 to 40 years for buildings and three to 20 years for machinery, equipment and fixtures. Capital lease amortization is recorded in depreciation expense. We expense normal maintenance and repair costs as incurred. Depreciation expense totaled $248 million, $269 million and $262 million for the years ended December 31, 2010, 2009 and 2008, respectively.

*
(52) CVS CAREMARK CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/18/2011; SIC code:5912 (RETAIL-DRUG STORES AND PROPRIETARY STORES)
Network: http://www.info.cvscaremark.com/taxonomy/role/DisclosureSignificantAccountingPoliciesPolicies
[Table]:
*
(53) DANAHER CORP /DE/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:3823 (INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL)
Network: http://www.danaher.com/taxonomy/role/DisclosureBusinessAndSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property, Plant and Equipment—Property, plant and equipment are carried at cost. The provision for depreciation has been computed principally by the straight-line method based on the estimated useful lives (3 to 35 years) of the depreciable assets.

*
(54) DAVITA INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:8090 (SERVICES-MISC HEALTH & ALLIED SERVICES, NEC)
Network: http://www.davita.com/taxonomy/role/NotesToFinancialStatementsOrganizationConsolidationPresentationOfFinancialStatementsAndSignificantAccountingPoliciesDisclosureTextBlockPolicies
[Table]: us-gaap:StatementTable

Property and equipment

Property and equipment is stated at cost less accumulated depreciation and amortization and is further reduced by any impairments. Maintenance and repairs are charged to expense as incurred. Depreciation and amortization expenses are computed using the straight-line method over the useful lives of the assets estimated as follows: buildings, 20 to 40 years; leasehold improvements, the shorter of their economic useful life or the expected lease term; and equipment and information systems, principally 3 to 8 years. Disposition gains and losses are included in current operating expenses.

*
(55) DEVON ENERGY CORP/DE (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:1311 (CRUDE PETROLEUM & NATURAL GAS)
Network: http://www.dvn.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(56) DIODES INC /DEL/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:3674 (SEMICONDUCTORS & RELATED DEVICES)
Network: http://www.diodes.com/role/DisclosureSummaryOfOperationsAndSignificantAccountingPolicies
[Table]:

Property, plant and equipment Purchased property, plant and equipment is recorded at historical cost and acquired property, plant and equipment is recorded at fair value on the date of acquisition. Property, plant and equipment is depreciated using straight-line methods over the estimated useful lives, which range from 20 to 55 years for buildings and 3 to 10 years for machinery and equipment. The estimated lives of leasehold improvements range from 3 to 5 years, and are amortized over the shorter of the remaining lease term or their estimated useful lives.

*
(57) DIRECTV (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:4899 (COMMUNICATIONS SERVICES, NEC)
Network: http://www.directv.com/role/DisclosureBasisOfPresentationAndSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(58) DIRECTV HOLDINGS LLC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:4841 (CABLE & OTHER PAY TELEVISION SERVICES)
Network: http://www.directv.com/role/DisclosureBasisOfPresentationAndSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable

Property and Equipment, Satellites and Depreciation

We carry property and equipment, and satellites at cost, net of accumulated depreciation. The amounts we capitalize for satellites currently being constructed and those that have been successfully launched include the costs of construction, launch, launch insurance, incentive obligations and capitalized interest. We generally compute depreciation using the straight-line method over the estimated useful lives of the assets. We amortize leasehold improvements over the lesser of the life of the asset or term of the lease.

*
(59) Discover Financial Services (SEC Filing, XBRL), Form: 10-K; Filing date: 1/26/2011; SIC code:6141 (PERSONAL CREDIT INSTITUTIONS)
Network: http://www.discoverfinancial.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(60) Discovery Communications, Inc. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/18/2011; SIC code:4841 (CABLE & OTHER PAY TELEVISION SERVICES)
Network: http://corporate.discovery.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(61) DOMINION RESOURCES INC /VA/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:4911 (ELECTRIC SERVICES)
Network: http://www.dom.com/taxonomy/role/DisclosureSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable

 

Property, Plant and Equipment

Property, plant and equipment, including additions and replacements is recorded at original cost, consisting of labor and materials and other direct and indirect costs such as asset retirement costs, capitalized interest and, for certain operations subject to cost-of-service rate regulation, AFUDC and overhead costs. The cost of repairs and maintenance, including minor additions and replacements, is charged to expense as it is incurred.

In 2010, 2009 and 2008, Dominion capitalized interest costs and AFUDC to property, plant and equipment of $102 million, $76 million and $88 million, respectively. In 2010, 2009 and 2008, Virginia Power capitalized interest costs and AFUDC to property, plant and equipment of $61 million, $47 million and $21 million, respectively. Under current Virginia legislation, certain Virginia jurisdictional projects qualify for current recovery of AFUDC through rate adjustment clauses. AFUDC on these projects is calculated and recorded as a regulatory asset and is not capitalized to property, plant and equipment. In 2010, 2009 and 2008, Virginia Power recorded $13 million, $34 million and $18 million of AFUDC related to these projects, respectively.

For Virginia Power property subject to cost-of-service rate regulation, including electric distribution, electric transmission, and generation property and for certain Dominion natural gas property, the undepreciated cost of such property, less salvage value, is charged generally to accumulated depreciation at retirement, with gains and losses recorded on the sales of property. Cost of removal collections from utility customers not representing AROs are recorded as regulatory liabilities.

For Dominion and Virginia Power property that is not subject to cost-of-service rate regulation, including nonutility property, cost of removal not associated with AROs is charged to expense as incurred. The Companies also record gains and losses upon retirement based upon the difference between the proceeds received, if any, and the property's net book value at the retirement date.

Depreciation of property, plant and equipment is computed on the straight-line method based on projected service lives. Dominion's and Virginia Power's depreciation rates on utility property, plant and equipment are as follows:

 

                         
Year Ended December 31,    2010      2009      2008  
(percent)                     

Dominion

                          

Generation

     2.59         2.62         2.60   

Transmission

     2.24         2.27         2.22   

Distribution

     3.20         3.21         3.22   

Storage

     2.75         2.83         2.87   

Gas gathering and processing

     2.39         2.18         2.13   

General and other

     4.60         4.33         4.35   
       

Virginia Power

                          

Generation

     2.59         2.62         2.60   

Transmission

     1.94         1.92         2.03   

Distribution

     3.33         3.33         3.37   

General and other

     4.28         3.95         3.97   

Dominion's nonutility property, plant and equipment, excluding E&P properties, is depreciated using the straight-line method over the following estimated useful lives:

 

         
Asset    Estimated Useful Lives  

Merchant generation—nuclear

     2944 years   

Merchant generation—other

     840 years   

General and other

     325 years   

Nuclear fuel used in electric generation is amortized over its estimated service life on a units-of-production basis. Dominion and Virginia Power report the amortization of nuclear fuel in electric fuel and other energy-related purchases expense in their Consolidated Statements of Income and in depreciation and amortization in their Consolidated Statements of Cash Flows.

Dominion follows the full cost method of accounting for its gas and oil E&P activities, which subjects capitalized costs to a quarterly ceiling test using hedge-adjusted prices. Due to the April 2010 sale of substantially all of its Appalachian E&P operations, as of December 31, 2010, Dominion no longer has any significant gas and oil properties subject to the ceiling test calculation.

At March 31, 2010, Dominion recorded a ceiling test impairment charge of $21 million ($13 million after-tax) in other operations and maintenance expense in its Consolidated Statement of Income primarily due to a decline in hedge-adjusted prices reflecting the discontinuance of hedge accounting for certain cash flow hedges, as discussed in Note 4.

In 2009, Dominion recorded a ceiling test impairment charge of $455 million ($281 million after-tax) in other operations and maintenance expense in its Consolidated Statement of Income. Excluding the effects of hedge-adjusted prices in calculating the ceiling limitation, the impairment would have been $631 million ($387 million after-tax).

 

In 2010, Dominion recognized a gain from the sale of substantially all of its Appalachian E&P operations as discussed in Note 4.
*
(62) DOVER CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/11/2011; SIC code:3530 (CONSTRUCTION, MINING & MATERIALS HANDLING MACHINERY & EQUIP)
Network: http://dovercorporation.com/role/DescriptionOfBusinessAndSummaryOfSignificantAccountingPoliciesPolicies
[Table]:
 
Property, Plant and Equipment — Property, plant and equipment includes the historic cost of land, buildings, equipment and significant improvements to existing plant and equipment or, in the case of acquisitions, a fair market value appraisal of such assets completed at the time of acquisition. Property, plant and equipment also includes the cost of purchased software. Expenditures for maintenance, repairs and minor renewals are expensed as incurred. When property or equipment is sold or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts and the gain or loss realized on disposition is reflected in earnings. Depreciation expense was $163,915 in 2010, $159,595 in 2009 and $159,282 in 2008 and was calculated on a straight-line basis for all periods presented. The Company depreciates its assets over their estimated useful lives as follows: buildings and improvements 5 to 31.5 years; machinery and equipment 3 to 7 years; furniture and fixtures 3 to 7 years; vehicles 3 years; and software 3 to 5 years.
*
(63) DOW CHEMICAL CO /DE/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/18/2011; SIC code:2821 (PLASTIC MATERIALS, SYNTH RESINS & NONVULCAN ELASTOMERS)
Network: http://dow.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(64) Dr Pepper Snapple Group, Inc. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/22/2011; SIC code:2080 (BEVERAGES)
Network: http://www.drpepper.com/role/SignificantAccountingPoliciesPolicies
[Table]:
Property, Plant and Equipment
Property, plant and equipment is stated at cost plus capitalized interest on borrowings during the actual construction period of major capital projects, net of accumulated depreciation. Significant improvements which substantially extend the useful lives of assets are capitalized. The costs of major rebuilds and replacements of plant and equipment are capitalized and expenditures for repairs and maintenance which do not improve or extend the life of the assets are expensed as incurred. When property, plant and equipment is sold or retired, the costs and the related accumulated depreciation are removed from the accounts, and any net gain or loss is recorded in other operating expense (income), net in the Consolidated Statements of Operations. Refer to Note 5 for further information.
For financial reporting purposes, depreciation is computed on the straight-line method over the estimated useful asset lives as follows: 
Type of Asset
Useful Life
Buildings
40 years
Building improvements
10 to 25 years
Machinery and equipment
3 to 20 years
Vehicles
5 to 10 years
Cold drink equipment
4 to 7 years
Computer software
3 to 5 years
 
Leasehold improvements are depreciated over the shorter of the estimated useful life of the assets or the lease term. Estimated useful lives are periodically reviewed and, when warranted, are updated.
The Company periodically reviews long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In order to assess recoverability, DPS compares the estimated undiscounted future pre-tax cash flows from the use of the asset or group of assets, as defined, to the carrying amount of such assets. Measurement of an impairment loss is based on the excess of the carrying amount of the asset or group of assets over the long-lived asset`s fair value. As of December 31, 2010 and 2009, no analysis was warranted. 
*
(65) DTE ENERGY CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/18/2011; SIC code:4911 (ELECTRIC SERVICES)
Network: http://dteenergy.com/role/SignificantAccountingPoliciesPolicies
[Table]:
 
Property, Retirement and Maintenance, and Depreciation, Depletion and Amortization
 
Property is stated at cost and includes construction-related labor, materials, overheads and, for utility property, an allowance for funds used during construction (AFUDC). The cost of utility properties retired, less salvage value, is charged to accumulated depreciation. Expenditures for maintenance and repairs are charged to expense when incurred, except for Fermi 2.
 
The Company bases depreciation provisions for utility property at Detroit Edison and MichCon on straight-line and units-of-production rates approved by the MPSC.
 
Non-utility property is depreciated over its estimated useful life using straight-line, declining-balance or units-of-production methods.
 
The Company credits depreciation, depletion and amortization expense when it establishes regulatory assets for plant-related costs such as depreciation or plant-related financing costs. The Company charges depreciation, depletion and amortization expense when it amortizes these regulatory assets. The Company credits interest expense to reflect the accretion income on certain regulatory assets.
 
Approximately $3 million and $13 million of expenses related to Fermi 2 refueling outages were accrued at December 31, 2010 and December 31, 2009, respectively. Amounts are accrued on a pro-rata basis over an 18-month period that coincides with scheduled refueling outages at Fermi 2. This accrual of outage costs matches the regulatory recovery of these costs in rates set by the MPSC.
*
(66) Duke Energy CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:4931 (ELECTRIC & OTHER SERVICES COMBINED)
Network: http://www.duke-energy.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(67) DUPONT E I DE NEMOURS & CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/8/2011; SIC code:2820 (PLASTIC MATERIAL, SYNTH RESIN/RUBBER, CELLULOS (NO GLASS))
Network: http://www.dupont.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property, Plant and Equipment

Property, plant and equipment is carried at cost and is depreciated using the straight-line method. Property, plant and equipment placed in service prior to 1995 is depreciated under the sum-of-the-years' digits method or other substantially similar methods. Substantially all equipment and buildings are depreciated over useful lives ranging from 15 to 25 years. Capitalizable costs associated with computer software for internal use are amortized on a straight-line basis over 5 to 7 years. When assets are surrendered, retired, sold or otherwise disposed of, their gross carrying values and related accumulated depreciation are removed from the accounts and included in determining gain or loss on such disposals.

Maintenance and repairs are charged to operations; replacements and improvements are capitalized.

*
(68) EATON CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:3590 (MISC INDUSTRIAL & COMMERCIAL MACHINERY & EQUIPMENT)
Network: http://eaton.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Long-Lived Assets
     Depreciation and amortization for property, plant and equipment, and intangible assets subject to amortization, are generally computed by the straight-line method and included in Cost of products sold, Selling and administrative expense, and Research and development expense, as appropriate. Cost of buildings are depreciated generally over 40 years and machinery and equipment over 3 to 10 years. At December 31, 2010, the weighted-average amortization period for intangible assets subject to amortization was 18 years for patents and technology and 17 years for customer relationships, primarily as a result of the long life of aircraft platforms. Software is generally amortized over a period up to 7 years.
     Long-lived assets, except goodwill and indefinite life intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Upon indications of impairment, assets and liabilities are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The asset group would be considered impaired when the estimated future net undiscounted cash flows generated by the asset group are less than its carrying value. Determining asset groups and underlying cash flows requires the use of significant judgment.
*
(69) EBAY INC (SEC Filing, XBRL), Form: 10-K; Filing date: 1/28/2011; SIC code:7389 (SERVICES-BUSINESS SERVICES, NEC)
Network: http://www.ebay.com/role/Note1CompanyAndSummaryOfSignificantAccountingPoliciesLevel2Policies
[Table]:
Property and equipment
Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally, one to three years for computer equipment and software, up to 30 years for buildings and building improvements, ten years for aviation equipment, the shorter of five years or the term of the lease for leasehold improvements, three years for furniture and fixtures and vehicles.
*
(70) ECOLAB INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:2840 (SOAP, DETERGENTS, CLEANG PREPARATIONS, PERFUMES, COSMETICS)
Network: http://www.ecolab.com/role/DisclosureSignificantAccountingPoliciesPolicies
[Table]:

Property, Plant and Equipment

Property, plant and equipment are stated at cost. Merchandising equipment consists principally of various systems that dispense the company’s cleaning and sanitizing products and dishwashing machines. The dispensing systems are accounted for on a mass asset basis, whereby equipment is capitalized and depreciated as a group and written off when fully depreciated. The company capitalizes both internal and external costs of development or purchase of computer software for internal use. Costs incurred for data conversion, training and maintenance associated with capitalized software are expensed as incurred.

 

Depreciation is charged to operations using the straight-line method over the assets’ estimated useful lives ranging from 5 to 40 years for buildings and leasehold improvements, 3 to 11 years for machinery and equipment and 3 to 7 years for merchandising equipment and capital software. Total depreciation expense was $306 million, $290 million and $286 million for 2010, 2009 and 2008, respectively. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and improvements, which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated.

 

Upon retirement or disposition of plant and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in income.

*
(71) EDISON INTERNATIONAL (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:4911 (ELECTRIC SERVICES)
Network: http://www.edison.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property, Plant and Equipment

Utility Property, Plant and Equipment

Utility plant additions, including replacements and betterments, are capitalized. Such costs include direct material and labor, construction overhead, a portion of administrative and general costs capitalized at a rate authorized by the CPUC, and AFUDC.

In May 2003, the Palo Verde units returned to traditional cost-of-service ratemaking while San Onofre Units 2 and 3 returned to traditional cost-of-service ratemaking in January 2004. SCE's nuclear plant investments made prior to the return to cost-of-service ratemaking are recorded as regulatory assets. Since the return to cost-of-service ratemaking, capital additions are recorded in utility plant. These classifications do not affect the ratemaking treatment for these assets.

Estimated useful lives (authorized by the CPUC) and weighted-average useful lives of SCE's property, plant and equipment, are as follows:

 
  Estimated Useful Lives
  Weighted-Average
Useful Lives

 
   

Generation plant

    25 years to 70 years     40 years  

Distribution plant

    30 years to 60 years     40 years  

Transmission plant

    35 years to 65 years     46 years  

Other plant

      5 years to 60 years     22 years  
   

Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. Depreciation expense stated as a percent of average original cost of depreciable utility plant was, on a composite basis, 4.1%, 4.2% and 4.3% for 2010, 2009 and 2008, respectively. Replaced or retired property costs are charged to the accumulated provision for depreciation. Cash payments for removal costs less salvage reduce the liability for AROs.

Nuclear fuel is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Nuclear fuel is amortized using the units of production method.

AFUDC represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. AFUDC – equity represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. AFUDC – equity was $100 million, $116 million and $54 million in 2010, 2009 and 2008, respectively, and AFUDC – debt was $41 million, $32 million and $27 million in 2010, 2009 and 2008, respectively.

The FERC issued an order granting ROE incentive adders, recovery of the ROE and incentive adders during the construction phase (referred to as CWIP) and recovery of abandoned plant costs for several of SCE's transmission projects. In addition, the FERC granted an incentive for CAISO participation. The order permits SCE to include 100% of prudently-incurred capital expenditures in rate base during construction of the three projects and earn a return on equity, rather than capitalizing AFUDC.


Competitive Power Generation and Other Property

Property, plant and equipment, including leasehold improvements and construction in progress, are capitalized at cost and are principally comprised of EMG's majority-owned subsidiaries' plants and related facilities and, prior to January 1, 2010, the plant and related facilities of VIEs consolidated by SCE. Depreciation and amortization are computed using the straight-line method over the estimated useful life of the property, plant and equipment and over the shorter of the lease term or estimated useful life for leasehold improvements. Gains and losses from sale of assets are recognized at the time of the transaction.

As part of the acquisition of the Midwest Generation plants and the Homer City plant, EMG acquired emission allowances under the United States Environmental Protection Agency's (US EPA's) Acid Rain Program. EMG uses these emission allowances in the normal course of its business to generate electricity and has classified them as part of property, plant and equipment. Acquired emission allowances will be amortized on a straight-line basis.

Estimated useful lives for property, plant and equipment are as follows:

 
Power plant facilities   3 to 35 years
Leasehold improvements   Shorter of life of lease or estimated useful life
Emission allowances   25 to 33.75 years
Equipment, furniture and fixtures   3 to 10 years
Capitalized leased equipment   5 years
 

Interest incurred on funds borrowed by EMG is capitalized during the construction period. Such capitalized interest is included in property, plant and equipment. Capitalized interest is amortized over the depreciation period of the major plant and facilities for the respective project. Capitalized interest was $54 million, $19 million and $32 million in 2010, 2009 and 2008, respectively.


Major Maintenance

Certain of Edison International's power plant facilities and equipment require periodic major maintenance. These costs are expensed as incurred.


Asset Retirement Obligation

The fair value of a liability for an asset retirement obligation ("AROs") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, the entity capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is increased for accretion expense each period and the capitalized cost is depreciated over the useful life of the related asset. Settlement of an ARO liability for an amount other than its recorded amount results in an increase or decrease in expense. AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies. Those site-specific studies are updated with each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP"). The initial establishment of a nuclear-related ARO is at fair value. Subsequent layers of an ARO are established for updated site-specific decommissioning cost estimates stemming from the approved NDCTP. For further discussion, see "Nuclear Decommissioning" below and see Notes 4 and 15. A reconciliation of the changes in the ARO liability is as follows:

(in millions)
  2010
  2009
 
   

Beginning balance

  $ 3,241   $ 3,042  

Accretion expense

    198     188  

Revisions1

    (867 )   6  

Liabilities added

    9     6  

Liabilities settled

    (1 )   (1 )

Transfers in or out2

    (19 )    
       

Ending balance

  $ 2,561   $ 3,241  
   
1
Revisions represent the most recent site-specific studies approved by the CPUC in 2010.
2
Transfers in or out consist of the deconsolidation of the Big 4 projects and two wind projects, and consolidation of one coal project effective January 1, 2010. For further details, see Note 3.

The ARO liability as of December 31, 2010 includes $2.4 billion related to nuclear decommissioning.

*
(72) Edwards Lifesciences Corp (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:3842 (ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES)
Network: http://www.edwards.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property, Plant and Equipment

        Property, plant and equipment are recorded at cost. Depreciation is principally calculated for financial reporting purposes on the straight-line method over the estimated useful lives of the related assets, which range from 10 to 40 years for buildings and improvements, from 3 to 15 years for machinery and equipment, and from 3 to 10 years for software. Leasehold improvements are amortized over the life of the related facility leases or the asset, whichever is shorter. Straight-line and accelerated methods of depreciation are used for income tax purposes.

        Depreciation expense for property, plant and equipment was $40.0 million, $38.0 million and $36.8 million for the years ended December 31, 2010, 2009 and 2008, respectively. Repairs and maintenance expense was $16.1 million, $15.4 million and $14.6 million for the years ended December 31, 2010, 2009 and 2008, respectively.

*
(73) EMC CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:3572 (COMPUTER STORAGE DEVICES)
Network: http://www.EMC.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]: us-gaap:StatementTable

Property, Plant and Equipment

 

Property, plant and equipment are recorded at cost. Buildings under development are included in building construction in progress. Depreciation commences upon placing the asset in service and is recognized on a straight-line basis over the estimated useful lives of the assets, as follows:

 

 Furniture and fixtures5-7 years
 Equipment and software2-5 years
 Improvements5-15 years
 Buildings10-51 years

Upon retirement or disposition, the asset cost and related accumulated depreciation are removed with any gain or loss recognized in the income statement. Repair and maintenance costs, including planned maintenance, are expensed as incurred.

 

*
(74) Energy Transfer Partners, L.P. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:4922 (NATURAL GAS TRANSMISSION)
Network: http://www.energytransfer.com/role/DisclosureEstimatesSignificantAccountingPoliciesAndBalanceSheetDetailPolicy
[Table]:

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful or Federal Energy Regulatory Commission ("FERC") mandated lives of the assets. Expenditures for maintenance and repairs that do not add capacity or extend the useful life are expensed as incurred. Expenditures to refurbish assets that either extend the useful lives of the asset or prevent environmental contamination are capitalized and depreciated over the remaining useful life of the asset. Additionally, we capitalize certain costs directly related to the installation of company-owned propane tanks and construction of assets including internal labor costs, interest and engineering costs. Upon disposition or retirement of pipeline components or natural gas plant components, any gain or loss is recorded to accumulated depreciation. When entire pipeline systems, gas plants or other property and equipment are retired or sold, any gain or loss is included in our consolidated statements of operations.

We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If such a review should indicate that the carrying amount of long-lived assets is not recoverable, we reduce the carrying amount of such assets to fair value. No impairment of long-lived assets was required during the periods presented.

Capitalized interest is included for pipeline construction projects, except for interstate projects for which an allowance for funds used during construction ("AFUDC") is accrued. Interest is capitalized based on the current borrowing rate of our revolving credit facility when the related costs are incurred. AFUDC is calculated under guidelines prescribed by the FERC and capitalized as part of the cost of utility plant for interstate projects. It represents the cost of servicing the capital invested in construction work-in-process. AFUDC is segregated into two component parts – borrowed funds and equity funds.

 

Components and useful lives of property, plant and equipment were as follows:

 

     December 31,  
     2010     2009  

Land and improvements

   $ 102,353      $ 87,224   

Buildings and improvements (10 to 40 years)

     189,210        156,676   

Pipelines and equipment (10 to 83 years)

     7,897,828        6,933,189   

Natural gas storage (40 years)

     100,909        100,746   

Bulk storage, equipment and facilities (3 to 83 years)

     736,520        591,908   

Tanks and other equipment (10 to 30 years)

     623,126        602,915   

Vehicles (3 to 20 years)

     197,323        176,946   

Right of way (20 to 83 years)

     612,374        509,173   

Furniture and fixtures (3 to 10 years)

     40,447        32,810   

Linepack

     54,156        53,404   

Pad gas

     57,907        47,363   

Other (5 to 10 years)

     136,775        117,896   
                
     10,748,928        9,410,250   

Less – Accumulated depreciation

     (1,286,099     (979,158
                
     9,462,829        8,431,092   

Plus – Construction work-in-process

     338,540        239,155   
                

Property, plant and equipment, net

   $ 9,801,369      $ 8,670,247   
                

We recognized the following amounts of depreciation expense for the periods presented:

 

     Years Ended December 31,  
     2010      2009      2008  

Depreciation expense

   $     322,406       $     291,908       $     244,689   
                          

Capitalized interest, excluding AFUDC

   $ 2,646       $ 11,791       $ 21,595   
                          
*
(75) Ensco plc (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:1381 (DRILLING OIL & GAS WELLS)
Network: http://www.enscointernational.com/role/DisclosureDescriptionOfBusinessAndSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(76) ENTERGY CORP /DE/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:4911 (ELECTRIC SERVICES)
Network: http://entergy.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property, Plant, and Equipment
     Property, plant, and equipment is stated at original cost. Depreciation is computed on the straight-line basis at rates based on the applicable estimated service lives of the various classes of property. For the Registrant Subsidiaries, the original cost of plant retired or removed, less salvage, is charged to accumulated depreciation. Normal maintenance, repairs, and minor replacement costs are charged to operating expenses. Substantially all of the Registrant Subsidiaries’ plant is subject to mortgage liens.
     Electric plant includes the portions of Grand Gulf and Waterford 3 that have been sold and leased back. For financial reporting purposes, these sale and leaseback arrangements are reflected as financing transactions.
     Net property, plant, and equipment for Entergy (including property under capital lease and associated accumulated amortization) by business segment and functional category, as of December 31, 2010 and 2009, is shown below:
                                 
                    Entergy        
                    Wholesale     Parent &  
2010   Entergy     Utility     Commodities     Other  
    (In Millions)  
Production
                               
Nuclear
  $ 8,393     $ 5,378     $ 3,015     $  
Other
    1,842       1,797       45        
Transmission
    2,986       2,956       30        
Distribution
    5,926       5,926              
Other
    1,661       1,411       248       2  
Construction work in progress
    1,662       1,300       361       1  
Nuclear fuel
    1,378       760       618        
 
                       
Property, plant, and equipment — net
  $ 23,848     $ 19,528     $ 4,317     $ 3  
 
                       
                                 
                    Entergy        
                    Wholesale     Parent &  
2009   Entergy     Utility     Commodities     Other  
    (In Millions)  
Production
                               
Nuclear
  $ 8,105     $ 5,414     $ 2,691     $  
Other
    1,936       1,724       212        
Transmission
    2,922       2,889       33        
Distribution
    5,948       5,948              
Other
    1,664       1,398       263       3  
Construction work in progress
    1,547       1,134       414       (1 )
Nuclear fuel (leased and owned)
    1,267       747       520        
 
                       
Property, plant, and equipment — net
  $ 23,389     $ 19,254     $ 4,133     $ 2  
 
                       
     Depreciation rates on average depreciable property for Entergy approximated 2.6% in 2010, 2.7% in 2009, and 2.7% in 2008. Included in these rates are the depreciation rates on average depreciable utility property of 2.5% in 2010, 2.7% in 2009, and 2.7% 2008, and the depreciation rates on average depreciable non-utility property of 3.7% in 2010, 3.8% in 2009, and 3.7% in 2008.
     Entergy amortizes nuclear fuel using a units-of-production method. Nuclear fuel amortization is included in fuel expense in the income statements.
     “Non-utility property — at cost (less accumulated depreciation)” for Entergy is reported net of accumulated depreciation of $207.6 million and $197.8 million as of December 31, 2010 and 2009, respectively.
     Construction expenditures included in accounts payable at December 31, 2010 is $171 million.
*
(77) EOG RESOURCES INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:1311 (CRUDE PETROLEUM & NATURAL GAS)
Network: http://eogresources.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Other Property, Plant and Equipment.  Other property, plant and equipment consist of gathering and processing assets, compressors, crude oil loading and unloading assets, vehicles, buildings and leasehold improvements, furniture and fixtures, and computer hardware and software.  Other property, plant and equipment is depreciated on a straight-line basis over the estimated useful lives of the property, plant and equipment, which range from 3 years to 40 years.
*
(78) EQT Corp (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:4923 (NATURAL GAS TRANSMISISON & DISTRIBUTION)
Network: http://www.eqt.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property, Plant and Equipment: The Company’s property, plant and equipment consists of the following:

 

 

 

December 31,

 

 

2010

 

2009

 

 

(Thousands)

Oil and gas producing properties, successful efforts method

 

$

4,655,217

 

$

3,423,068

 

Accumulated depletion

 

967,473

 

797,303

 

Net oil and gas producing properties

 

3,687,744

 

2,625,765

 

Midstream plant

 

1,934,288

 

1,991,779

 

Accumulated depreciation and amortization

 

413,105

 

390,939

 

Net midstream plant

 

1,521,183

 

1,600,840

 

Distribution plant

 

976,394

 

944,842

 

Accumulated depreciation and amortization

 

328,781

 

310,026

 

Net distribution plant

 

647,613

 

634,816

 

Other properties, at cost less accumulated depreciation

 

53,551

 

53,310

 

Net property, plant and equipment

 

$

5,910,091

 

$

4,914,731

 

 

Oil and gas producing properties use the successful efforts method of accounting for production activities.  Under this method, the cost of productive wells, including mineral interests, wells and related equipment, development dry holes, as well as productive acreage, are capitalized and depleted on the unit-of-production method.  These capitalized costs include salaries, benefits and other internal costs directly attributable to these activities.  The Company capitalized internal costs of $56.8 million, $46.5 million and $35.6 million in 2010, 2009 and 2008, respectively.  The Company capitalized $7.6 million of interest relative to Marcellus Shale well development in 2010. Depletion expense is calculated based on the actual production multiplied by the applicable depletion rate per unit.  The depletion rates are derived by dividing the total costs capitalized by the number of units expected to be produced over the life of the reserves.  Costs of exploratory dry holes, geological and geophysical activities, delay rentals and other property carrying costs are charged to expense.  The majority of the Company’s oil and natural gas producing properties consist of gas producing properties which were depleted at a composite rate of $1.26/Mcfe, $1.06/Mcfe and $0.81/Mcfe produced for the years ended December 31, 2010, 2009 and 2008, respectively.

 

The carrying values of the Company’s proved oil and gas properties are reviewed for indications of impairment when events or circumstances indicate that the remaining carrying value may not be recoverable.  In order to determine whether impairment has occurred, the Company estimates the expected future cash flows (on an undiscounted basis) from its proved oil and gas properties and compares these estimates to the carrying values of the properties.  The estimated future cash flows used to test those properties for recoverability are based on proved reserves, utilizing assumptions about the use of the asset, market prices for oil and gas and future operating costs.  Proved oil and gas properties that have carrying amounts in excess of estimated future cash flows would be deemed to be unrecoverable.  Those properties would be written down to fair value, which would be estimated by discounting the estimated future cash flows using discount rate assumptions that marketplace participants would use in their estimates of fair value.  For the years ended December 31, 2010, 2009 and 2008, the Company did not recognize impairment charges on proved oil and gas properties.

 

Capitalized costs of unproved properties are evaluated at least annually for recoverability on an aggregated prospect basis.  Indicators of potential impairment include changes brought about by economic factors, potential shifts in business strategy employed by management and historical experience.  If it is determined that the properties will not yield proved reserves, the related costs are expensed in the period in which that determination is made.  Unproved properties had a net book value of $445.9 million and $105.9 million at December 31, 2010 and December 31, 2009, respectively.

 

The Company had capitalized exploratory well costs pending the determination of proved reserves of $6.9 million on an exploratory Utica well at December 31, 2008.  During 2009, the Company incurred $1.0 million on this well. During 2009, the Company made the decision to plug back the well and convert it to a horizontal Marcellus Shale well in 2010. As a result, the Company wrote-off $2.9 million of incremental costs related to drilling to the Utica formation. At December 31, 2010 and 2009, the Company had no capitalized exploratory well costs. For additional information on oil and gas properties see Note 22 (unaudited).

 

Midstream property, plant and equipment is carried at cost.  Depreciation is calculated using the straight-line method based on estimated service lives.  Midstream property consists largely of gathering and transmission systems (25-60 year estimated service life), buildings (35 year estimated service life), office equipment (3-7 year estimated service life), vehicles (5 year estimated service life), and computer and telecommunications equipment and systems (3-7 year estimated service life).

 

Distribution property, plant and equipment, principally regulated property, is carried at cost.  Depreciation is recorded using composite rates on a straight-line basis. The overall rate of depreciation for both the years ended December 31, 2010 and December 31, 2009 was approximately 4% of net properties in both years.

 

Major maintenance projects that do not increase the overall life of the related assets are expensed.  When the major maintenance materially increases the life or value of the underlying asset, the cost is capitalized.

*
(79) EXELON CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/10/2011; SIC code:4911 (ELECTRIC SERVICES)
Network: http://exeloncorp.com/role/DisclosureSignificantAccountingPoliciesPolicies
[Table]:

Property, Plant and Equipment (Exelon, Generation, ComEd and PECO)

 

Property, plant and equipment is recorded at original cost. Original cost includes labor and materials, construction overhead, when appropriate, capitalized interest for Generation and AFUDC for regulated property at ComEd and PECO. The cost of repairs and maintenance, including planned major maintenance activities and minor replacements of property, is charged to maintenance expense as incurred.

 

Third parties reimburse ComEd and PECO for all or a portion of expenditures for certain capital projects. Such contributions in aid of construction costs (CIAC) are netted against the project costs. DOE SGIG funds reimbursed to PECO by the DOE are accounted for as CIAC.

For Generation, upon retirement, the cost of property is charged to accumulated depreciation in accordance with the composite method of depreciation. Upon replacement of an asset, the costs to remove the asset, net of salvage, is capitalized when incurred to gross plant as part of the cost of the newly installed asset and recorded to depreciation expense over the life of the new asset. Removal costs, net of salvage, incurred for property that will not be replaced is charged to expense as incurred.

For ComEd and PECO, upon retirement, the cost of property, net of salvage, is charged to accumulated depreciation in accordance with the composite method of depreciation. ComEd's depreciation expense includes the estimated cost of dismantling and removing plant from service upon retirement, which is consistent with ComEd's regulatory recovery method. ComEd's actual incurred removal costs are applied against the related regulatory liability. PECO's removal costs are capitalized to accumulated depreciation when incurred and recorded to depreciation expense over the life of the new asset constructed consistent with PECO's regulatory recovery method. 

See Note 5—Property, Plant and Equipment, Note 6—Jointly Owned Electric Utility Plant and Note 19—Supplemental Financial Information for additional information regarding property, plant and equipment.

 

Depreciation and Amortization (Exelon, Generation, ComEd and PECO)

Except for the amortization of nuclear fuel, depreciation is generally recorded over the estimated service lives of property, plant and equipment on a straight-line basis using the composite method. ComEd's depreciation includes a provision for estimated removal costs as authorized by the ICC. The estimated service lives for ComEd and PECO are primarily based on the average service lives from the most recent depreciation study for each respective company. The estimated service lives of the nuclear-fuel generating facilities are based on the remaining useful lives of the stations, which assume a 20-year license renewal extension of the operating licenses (to the extent that such renewal has not yet been granted) for all of Generation's operating nuclear generating stations except for Oyster Creek. See Note 18 - Commitments and Contingencies for information regarding Oyster Creek. The estimated service lives of the hydroelectric generating facilities are based on the remaining useful lives of the stations, which assume a license renewal extension of the operating licenses. The estimated service lives of the fossil fuel and other renewable generating facilities are based on the remaining useful lives of the stations, which Generation periodically evaluates based on feasibility assessments taking into account economic and capital requirement considerations. See Note 5—Property, Plant and Equipment for further information regarding depreciation.

 

*
(80) EXPEDITORS INTERNATIONAL OF WASHINGTON INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:4731 (ARRANGEMENT OF TRANSPORTATION OF FREIGHT & CARGO)
Network: http://www.expeditors.com/taxonomy/role/NotesToFinancialStatementsBusinessDescriptionAndSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable

E.  |  Long-Lived Assets, Depreciation and Amortization

Property and equipment are recorded at cost and are depreciated or amortized on the straight-line method over the shorter of the assets’ estimated useful lives or lease terms. Useful lives for major categories of property and equipment are as follows:

 

Land Improvements

     50 years   

Buildings

     28 to 40 years   

Furniture, fixtures, equipment and purchased software

     3 to 5 years   

Expenditures for maintenance, repairs, and replacements of minor items are charged to earnings as incurred. Major upgrades and improvements that extend the life of the asset are capitalized. Upon disposition, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in income for the period.

*
(81) EXPRESS SCRIPTS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/16/2011; SIC code:5912 (RETAIL-DRUG STORES AND PROPRIETARY STORES)
Network: http://express-scripts.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
          Property and equipment. Property and equipment is carried at cost and is depreciated using the straight-line method over estimated useful lives of seven years for furniture and three to five years for equipment and purchased computer software. Buildings are amortized on a straight-line basis over estimated useful lives of ten years to thirty-five years. Leasehold improvements are amortized on a straight-line basis over the remaining term of the lease or the useful life of the asset, if shorter. Expenditures for repairs, maintenance and renewals are charged to income as incurred. Expenditures that improve an asset or extend its estimated useful life are capitalized. When properties are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in income.
          Research and development expenditures relating to the development of software for internal purposes are charged to expense until technological feasibility is established. Thereafter, the remaining software production costs up to the date placed into production are capitalized and included as property and equipment. Amortization of the capitalized amounts commences on the date placed into production, and is computed on a product-by-product basis using the straight-line method over the remaining estimated economic life of the product but not more than five years. Reductions, if any, in the carrying value of capitalized software costs to net realizable value are expensed. With respect to capitalized software costs, we recorded amortization expense of $23.2 million in 2010, $20.4 million in 2009 and $19.7 million in 2008.
*
(82) EXXON MOBIL CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:2911 (PETROLEUM REFINING)
Network: http://www.exxonmobil.com/taxonomy/role/DisclosureSummaryOfAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(83) FASTENAL CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/9/2011; SIC code:5200 (RETAIL-BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY)
Network: http://www.fastenal.com/taxonomy/role/DisclosureBusinessOverviewAndSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property and Equipment

 

Property and equipment are stated at cost. Depreciation on buildings and equipment is provided for using the straight-line method over the anticipated economic useful lives of the related property. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by the asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market value, and third-party independent appraisals, as considered necessary. There were no impairments recorded during the three years reported in these consolidated financial statements.   
*
(84) Fidelity National Information Services, Inc. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:7389 (SERVICES-BUSINESS SERVICES, NEC)
Network: http://fidelityinfoservices.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
(l) Property and Equipment
     Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed primarily using the straight-line method based on the estimated useful lives of the related assets: thirty years for buildings and three to seven years for furniture, fixtures and computer equipment. Leasehold improvements are amortized using the straight-line method over the lesser of the initial term of the applicable lease or the estimated useful lives of such assets.
*
(85) FIFTH THIRD BANCORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6022 (STATE COMMERCIAL BANKS)
Network: http://www.53.com/taxonomy/role/NotesToFinancialStatementsSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable

Bank Premises and Equipment

Bank premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method based on estimated useful lives of the assets for book purposes, while accelerated depreciation is used for income tax purposes. Amortization of leasehold improvements is computed using the straight-line method over the lives of the related leases or useful lives of the related assets, whichever is shorter. The Bancorp tests its long-lived assets for impairment through both a probability-weighted and primary-asset approach whenever events or changes in circumstances dictate. Maintenance, repairs and minor improvements are charged to noninterest expense in the Consolidated Statements of Income as incurred.

*
(86) FIRST SOLAR, INC. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:3674 (SEMICONDUCTORS & RELATED DEVICES)
Network: http://www.firstsolar.com/role/Note2.SummaryOfSignificantAccountingPoliciesLevel2Policies
[Table]:
Property, Plant and Equipment. We report our property, plant and equipment at cost, less accumulated depreciation. Cost includes the price paid to acquire or construct the assets, including interest capitalized during the construction period, and any expenditure that substantially adds to the value of or substantially extends the useful life of an existing asset. We expense repair and maintenance costs at the time we incur them.
 
We compute depreciation expense using the straight-line method over the estimated useful lives of the assets, as presented in the table below. We amortize leasehold improvements over the shorter of their estimated useful lives or the remaining term of the lease.
 
 
 
 
Useful Lives
in Years
Buildings
 
40
Manufacturing machinery and equipment
 
5 – 7
Furniture, fixtures, computer hardware, and computer software
 
3 – 7
Leasehold improvements
 
up to 15
*
(87) FirstEnergy Corp. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/16/2011; SIC code:4911 (ELECTRIC SERVICES)
Network: http://firstenergycorp.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
(D) PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment reflects original cost (except for nuclear generating assets which are adjusted to fair value), including payroll and related costs such as taxes, employee benefits, administrative and general costs, and interest costs incurred to place the assets in service. The costs of normal maintenance, repairs and minor replacements are expensed as incurred. FirstEnergy recognizes liabilities for planned major maintenance projects as they are incurred. Property, plant and equipment balances as of December 31, 2010 and 2009 were as follows:
                                                 
    December 31, 2010     December 31, 2009  
Property, Plant and Equipment   Unregulated     Regulated     Total     Unregulated     Regulated     Total  
    (In millions)  
In service
  $ 11,952     $ 17,499     $ 29,451     $ 10,935     $ 16,891     $ 27,826  
Less accumulated depreciation
    (4,229 )     (6,951 )     (11,180 )     (4,699 )     (6,698 )     (11,397 )
 
                                   
Net plant in service
  $ 7,723     $ 10,548     $ 18,271     $ 6,236     $ 10,193     $ 16,429  
 
                                   
FirstEnergy provides for depreciation on a straight-line basis at various rates over the estimated lives of property included in plant in service. The respective annual composite rates for FirstEnergy’s subsidiaries’ electric plant in 2010, 2009 and 2008 are shown in the following table:
                         
    Annual Composite  
    Depreciation Rate  
    2010     2009     2008  
OE
    2.9 %     3.1 %     3.1 %
CEI
    3.2       3.3       3.5  
TE
    3.3       3.3       3.6  
Penn
    2.2       2.4       2.4  
JCP&L
    2.4       2.4       2.3  
Met-Ed
    2.5       2.5       2.3  
Penelec
    2.5       2.6       2.5  
FGCO
    4.0       4.6       4.7  
NGC
    3.1       3.0       2.8  
Asset Retirement Obligations
FirstEnergy recognizes an ARO for the future decommissioning of its nuclear power plants and future remediation of other environmental liabilities associated with all of its long-lived assets. The ARO liability represents an estimate of the fair value of FirstEnergy’s current obligation related to nuclear decommissioning and the retirement or remediation of environmental liabilities of other assets. A fair value measurement inherently involves uncertainty in the amount and timing of settlement of the liability. FirstEnergy uses an expected cash flow approach to measure the fair value of the nuclear decommissioning and environmental remediation ARO. This approach applies probability weighting to discounted future cash flow scenarios that reflect a range of possible outcomes. The scenarios consider settlement of the ARO at the expiration of the nuclear power plant’s current license, settlement based on an extended license term and expected remediation dates. The fair value of an ARO is recognized in the period in which it is incurred. The associated asset retirement costs are capitalized as part of the carrying value of the long-lived asset and are depreciated over the life of the related asset, as described further in Note 12.
*
(88) FISERV INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:7374 (SERVICES-COMPUTER PROCESSING & DATA PREPARATION)
Network: http://www.fiserv.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property and Equipment

Property and equipment are reported at cost. Depreciation of property and equipment is computed primarily using the straight-line method over the shorter of the estimated useful life of the asset or the leasehold period, if applicable. Property and equipment consisted of the following at December 31:

 

(In millions)

   Estimated
Useful Lives
     2010     2009  

Land

     —         $ 23      $ 23   

Data processing equipment

     3 to 7 years         476        456   

Buildings and leasehold improvements

     5 to 40 years         184        183   

Furniture and equipment

     3to 10 years         161        156   
                   
        844        818   

Less: accumulated depreciation

        (577     (525
                   

Total

      $ 267      $ 293   
                   

Depreciation expense for all property and equipment totaled $84 million, $91 million and $103 million in 2010, 2009 and 2008, respectively.

*
(89) FORD MOTOR CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:3711 (MOTOR VEHICLES & PASSENGER CAR BODIES)
Network: http://www.ford.com/2010-12-31/role/SummaryOfAccountingPoliciesPolicies
[Table]:
These assets are recorded at cost, net of accumulated depreciation and impairments.  We capitalize new assets when we expect to use the asset for more than one year and the acquisition cost is greater than $2,500.  Routine maintenance and repair costs are expensed when incurred.

Property and equipment are depreciated primarily using the straight-line method over the estimated useful life of the asset.  Useful lives range from 3 years to 36 years.  The estimated useful lives generally are 14.5 years for machinery and equipment, and 30 years for buildings and improvements.  Special tools generally are amortized over the expected life of a product program using a straight-line method.  If the expected production volumes for major product programs associated with the tools decline significantly, we accelerate the amortization reflecting the rate of decline.
Included in our carrying value is the estimated cost for legal obligations to retire, abandon, or dispose of the asset.  These conditional asset retirement obligations relate to the estimated cost for asbestos abatement and PCB removal.
*
(90) FORTUNE BRANDS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:3430 (HEARING EQUIP, EXCEPT ELEC & WARM AIR; & PLUMBING FIXTURES)
Network: http://www.fortunebrands.com/taxonomy/role/DisclosureSignificantAccountingPoliciesPolicy
[Table]:
*
(91) FOSTER WHEELER AG (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:1600 (HEAVY CONSTRUCTION OTHER THAN BLDG CONST - CONTRACTORS)
Network: http://fwc.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Land, Buildings and Equipment — Depreciation is computed on a straight-line basis using estimated lives ranging from 10 to 50 years for buildings and from 3 to 35 years for equipment. Depreciation expense is allocated to cost of operating revenues or selling, general and administrative expenses based on the manner in which the underlying assets are deployed. Expenditures for maintenance and repairs are charged to expense as incurred. Renewals and betterments are capitalized. Upon retirement or other disposition of fixed assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gains or losses, if any, are reflected in earnings.
*
(92) FREEPORT MCMORAN COPPER & GOLD INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:1000 (METAL MINING)
Network: http://fcx.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property, Plant, Equipment and Development Costs.  Property, plant, equipment and development costs are carried at cost. Mineral exploration costs, as well as drilling and other costs incurred for the purpose of converting mineral resources to proven and probable reserves or identifying new mineral resources at development or production stage properties, are charged to expense as incurred. Development costs are capitalized beginning after proven and probable reserves have been established. Development costs include costs incurred resulting from mine pre-production activities undertaken to gain access to proven and probable reserves including shafts, adits, drifts, ramps, permanent excavations, infrastructure and removal of overburden. Additionally, interest expense allocable to the cost of developing mining properties and to constructing new facilities is capitalized until assets are ready for their intended use.

Expenditures for replacements and improvements are capitalized. Costs related to periodic scheduled maintenance (i.e., turnarounds) are expensed as incurred. Depreciation for mining and milling life-of-mine assets, infrastructure and other common costs is determined using the unit-of-production method based on total estimated recoverable proven and probable copper reserves (for primary copper mines) and proven and probable molybdenum reserves (for the primary molybdenum mine). Development costs and acquisition costs for proven and probable reserves that relate to a specific ore body are depreciated using the unit-of-production method based on estimated recoverable proven and probable reserves for the ore body benefited. Depreciation, depletion and amortization using the unit-of-production method is recorded upon extraction of the recoverable copper or molybdenum from the ore body, at which time it is allocated to inventory cost and then included as a component of cost of goods sold. Other assets are depreciated on a straight-line basis over estimated useful lives of up to 30 years for buildings and three to 20 years for machinery and equipment, and mobile equipment.

Included in property, plant, equipment and development costs is value beyond proven and probable reserves (VBPP) primarily resulting from FCX’s acquisition of Phelps Dodge Corporation (Phelps Dodge) in 2007. The concept of VBPP has been interpreted differently by different mining companies. FCX’s VBPP is attributable to (i) mineralized material, which includes measured and indicated amounts, that FCX believes could be brought into production with the establishment or modification of required permits and should market conditions and technical assessments warrant, (ii) inferred mineral resources and (iii) exploration potential, as further defined below.

Mineralized material is a mineralized body that has been delineated by appropriately spaced drilling and/or underground sampling to support reported tonnage and average grade of minerals. Such a deposit does not qualify as proven and probable reserves until legal and economic feasibility are confirmed based upon a comprehensive evaluation of development costs, unit costs, grades, recoveries and other material factors. Inferred mineral resources are that part of a mineral resource for which the overall tonnages, grades and mineral contents can be estimated with a reasonable level of confidence based on geological evidence and apparent geological and grade continuity after applying economic parameters. An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource. Exploration potential is the estimated value of potential mineral deposits that FCX has the legal right to access. The value assigned to exploration potential was determined by interpreting the known exploration information and exploration results, including geological data and/or geological information, that were available as of the acquisition date.

Carrying amounts assigned to VBPP are not charged to expense until the VBPP becomes associated with additional proven and probable reserves and the reserves are produced or the VBPP is determined to be impaired. Additions to proven and probable reserves for properties with VBPP will carry with them the value assigned to VBPP at the date acquired, less any impairment amounts.
*
(93) GENUINE PARTS CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:5013 (WHOLESALE-MOTOR VEHICLE SUPPLIES & NEW PARTS)
Network: http://genpt.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property, Plant, and Equipment
 
Property, plant, and equipment are stated at cost. Buildings include certain leases capitalized at December 31, 2010 and 2009. Depreciation and amortization is primarily determined on a straight-line basis over the following estimated useful life of each asset: buildings and improvements, 10 to 40 years; machinery and equipment, 5 to 15 years.
*
(94) GILEAD SCIENCES INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:2836 (BIOLOGICAL PRODUCTS, (NO DISGNOSTIC SUBSTANCES))
Network: http://www.gilead.com/taxonomy/role/DisclosureOrganizationAndSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(95) GOODRICH CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/15/2011; SIC code:3760 (GUIDED MISSILES & SPACE VEHICLES & PARTS)
Network: http://goodrich.com/role/SignificantAccountingPoliciesPolicies
[Table]:
 
Property, Plant and Equipment.  Property, plant and equipment, including amounts recorded under capital leases, are recorded at cost. Depreciation is computed principally using the straight-line method over the following estimated useful lives: buildings and improvements, 15 to 40 years; machinery and equipment, 5 to 15 years; and internal use software, 2 to 10 years. In the case of capitalized lease assets, depreciation is recognized over the lease term if shorter. Repairs and maintenance costs are expensed as incurred. See Note 14, “Supplemental Balance Sheet Information”.
*
(96) Google Inc. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/11/2011; SIC code:7370 (SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.)
Network: http://www.google.com/taxonomy/role/NotesToFinancialStatementsBusinessDescriptionAndSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable

Property and Equipment

We account for property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful lives of the assets, generally two to five years. We depreciate buildings over periods up to 25 years. We amortize leasehold improvements over the shorter of the remaining lease term or the estimated useful lives of the assets. Construction in progress is related to the construction or development of property (including land) and equipment that have not yet been placed in service for their intended use. Depreciation for equipment commences once it is placed in service and depreciation for buildings and leasehold improvements commences once they are ready for their intended use. Land is not depreciated.

*
(97) GRAINGER W W INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:5000 (WHOLESALE-DURABLE GOODS)
Network: http://grainger.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
PROPERTY, BUILDINGS AND EQUIPMENT
Property, buildings and equipment are valued at cost. For financial statement purposes, depreciation and amortization are provided in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, principally on the declining-balance and sum-of-the-years-digits depreciation methods. The principal estimated useful lives for determining depreciation are as follows:
 
Buildings, structures and improvements
10 to 30 years
Furniture, fixtures, machinery and equipment
  3 to 10 years
 
Improvements to leased property are amortized over the initial terms of the respective leases or the estimated service lives of the improvements, whichever is shorter.
 
The Company capitalized interest costs of $0.5 million, $0.5 million and $1.3 million in 2010, 2009 and 2008, respectively.
*
(98) Halliburton Company (SEC Filing, XBRL), Form: 10-K; Filing date: 2/17/2011; SIC code:1389 (OIL & GAS FIELD SERVICES, NEC)
Network: http://halliburton.com/role/DescriptionOfCompanyAndSignificantAccountingPoliciesPolicies
[Table]:
Other than those assets that have been written down to their fair values due to impairment, property, plant, and equipment are reported at cost less accumulated depreciation, which is generally provided on the straight-line method over the estimated useful lives of the assets.  Accelerated depreciation methods are also used for tax purposes, wherever permitted.  Upon sale or retirement of an asset, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is recognized.  Planned major maintenance costs are generally expensed as incurred.  Expenditures for additions, modifications, and conversions are capitalized when they increase the value or extend the useful life of the asset.

*
(99) HARLEY DAVIDSON INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:3751 (MOTORCYCLES, BICYCLES & PARTS)
Network: http://www.harley-davidson.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(100) HENRY SCHEIN INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/22/2011; SIC code:5047 (WHOLESALE-MEDICAL, DENTAL & HOSPITAL EQUIPMENT & SUPPLIES)
Network: http://henryschein.com/role/SignificantAccountingPoliciesPolicies
[Table]:
Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation or amortization.  Amortization of leasehold improvements is computed using the straight-line method over the lesser of the useful life of the assets or the lease term.  Depreciation is computed primarily under the straight-line method (see Note 2, Property and Equipment, Net for estimated useful lives).

Capitalized software costs consist of costs to purchase and develop software.  Costs incurred during the application development stage for software bought and further customized by outside suppliers for our use and software developed by a supplier for our proprietary use are capitalized.  Costs incurred for our own personnel who are directly associated with software development are capitalized.
 
*
(101) Hershey Co (SEC Filing, XBRL), Form: 10-K; Filing date: 2/18/2011; SIC code:2060 (SUGAR & CONFECTIONERY PRODUCTS)
Network: http://hersheys.com/role/SummarySignificantAccountingPoliciesPolicies
[Table]:
Property, plant and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, as follows: 3 to 15 years for machinery and equipment; and 25 to 40 years for buildings and related improvements.  Maintenance and repairs are expensed as incurred.  We capitalize applicable interest charges incurred during the construction of new facilities and production lines and amortize these costs over the assets’ estimated useful lives.
 
We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.  We measure the recoverability of assets to be held and used by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated.  If these assets are considered to be impaired, we measure impairment as the amount by which the carrying amount of the assets exceeds the fair value of the assets.  We report assets held for sale or disposal at the lower of the carrying amount or fair value less cost to sell.
*
(102) HEWLETT PACKARD CO (SEC Filing, XBRL), Form: 10-K; Filing date: 12/15/2010; SIC code:3570 (COMPUTER & OFFICE EQUIPMENT)
Network: http://www.hp.com/role/DisclosureSummaryOfSignificantAccountingPoliciesByPolicy
[Table]:

Property, Plant and Equipment

        HP states property, plant and equipment at cost less accumulated depreciation. HP capitalizes additions and improvements and expenses maintenance and repairs as incurred. Depreciation is computed using straight-line or accelerated methods over the estimated useful lives of the assets. Estimated useful lives are 5 to 40 years for buildings and improvements and 3 to 15 years for machinery and equipment. HP depreciates leasehold improvements over the life of the lease or the asset, whichever is shorter. HP depreciates equipment held for lease over the initial term of the lease to the equipment's estimated residual value. The estimated useful lives of assets used solely to support a customer services contract generally do not exceed the term of the customer contract.

        HP capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. HP amortizes capitalized internal use software costs using the straight-line method over the estimated useful lives of the software, generally from three to five years.

*
(103) Honeywell International Inc (SEC Filing, XBRL), Form: 10-K; Filing date: 2/11/2011; SIC code:3714 (MOTOR VEHICLE PARTS & ACCESSORIES)
Network: http://www.honeywell.com/role/DisclosureSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESPolicies
[Table]:

Property, Plant and Equipment—Property, plant and equipment are recorded at cost, including any asset retirement obligations, less accumulated depreciation. For financial reporting, the straight-line method of depreciation is used over the estimated useful lives of 10 to 50 years for buildings and improvements and 2 to 16 years for machinery and equipment. Recognition of the fair value of obligations associated with the retirement of tangible long-lived assets is required when there is a legal obligation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the related long-lived asset and depreciated over the corresponding asset's useful life. See Note 11 and Note 17 for additional details.

 

*
(104) HOSPIRA INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/16/2011; SIC code:2834 (PHARMACEUTICAL PREPARATIONS)
Network: http://www.hospira.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property and Equipment

        Property and equipment are stated at cost and depreciation is provided on a straight-line basis over the estimated useful lives or lease term of the assets. Instruments placed with customers are drug delivery systems placed with or leased to customers under operating leases. See Note 10 for more details.

*
(105) HOST HOTELS & RESORTS, INC. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:7011 (HOTELS & MOTELS)
Network: http://www.hosthotels.com/taxonomy/role/NotesToFinancialStatementsSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable

Property and Equipment

Generally, property and equipment is recorded at cost. For newly developed properties, cost includes interest and real estate taxes incurred during development and construction. For property and equipment acquired in a business combination, we record the assets based on their fair value as of the acquisition date. Replacements and improvements and capital leases are capitalized, while repairs and maintenance are expensed as incurred. We depreciate our property and equipment using the straight-line method over the estimated useful lives of the assets, generally 40 years for buildings and three to ten years for furniture and equipment. Leasehold improvements are amortized over the shorter of the lease term or the useful lives of the related assets.

We capitalize certain inventory (such as china, glass, silver, linen) at the time of a hotel opening or acquisition, or when significant inventory is purchased (in conjunction with a major rooms renovation or when the number of rooms or meeting space at a hotel is expanded). These amounts are then amortized over the estimated useful life of three years. Subsequent replacement purchases are expensed when placed in service.

We maintain a furniture, fixtures and equipment replacement fund for renewal and replacement capital expenditures at certain hotels, which is generally funded with approximately 5% of property revenues.

We analyze our assets for impairment when events or circumstances occur that indicate the carrying value may not be recoverable. We consider a property to be impaired when the sum of the future undiscounted cash flows over our remaining estimated holding period is less than the carrying value of the asset. We test for impairment in several situations, including when a property has a current or projected loss from operations, when it becomes more likely than not that a hotel will be sold before the end of its previously estimated useful life, or when other events, trends, contingencies or changes in circumstances indicate that a triggering event has occurred and an asset’s carrying value may not be recoverable. For impaired assets, we record an impairment charge equal to the excess of the property’s carrying value over its fair value. In the evaluation of the impairment of our assets, we make many assumptions and estimates, including assumptions on the projected cash flows, both from operations and the eventual disposition, the expected useful life and holding period of the asset, the future required capital expenditures and fair values, including consideration of capitalization rates, discount rates and comparable selling prices.

We will classify a hotel as held for sale when the sale of the asset is probable, will be completed within one year and actions to complete the sale are unlikely to change or that the sale will be withdrawn. Accordingly, we typically classify assets as held for sale when Host Inc.’s Board of Directors has approved the sale, a binding agreement to purchase the property has been signed under which the buyer has committed a significant amount of nonrefundable cash and no significant financing contingencies exist which could prevent the transaction from being completed in a timely manner. If these criteria are met, we will cease recording depreciation and will record an impairment loss if the fair value less costs to sell is lower than the carrying amount of the hotel. We will classify the loss, together with the related operating results, including interest expense on debt assumed by the buyer or that is required to be repaid as a result of the sale, as discontinued operations on our consolidated statements of operations and classify the assets and related liabilities as held for sale on the balance sheet. Gains on sales of properties are recognized at the time of sale or deferred and recognized as income in subsequent periods as conditions requiring deferral are satisfied or expire without further cost to us.

We recognize the fair value of any liability for conditional asset retirement obligations, including environmental remediation liabilities, when incurred, which is generally upon acquisition, construction, or development and/or through the normal operation of the asset, if sufficient information exists with which to reasonably estimate the fair value of the obligation.

*
(106) ILLINOIS TOOL WORKS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:3560 (GENERAL INDUSTRIAL MACHINERY & EQUIPMENT)
Network: http://itw.com/role/SignificantAccountingPoliciesPolicies
[Table]:
 
Plant and Equipment are stated at cost less accumulated depreciation. Renewals and improvements that increase the useful life of plant and equipment are capitalized. Maintenance and repairs are charged to expense as incurred.
Depreciation of plant and equipment for financial reporting purposes is computed on an accelerated basis for U.S. businesses and on a straight-line basis for a majority of the international businesses.
*
(107) IMPERIAL OIL LTD (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:2911 (PETROLEUM REFINING)
Network: http://www.imperialoil.ca/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property, plant and equipment are recorded at cost. Investment tax credits and other similar grants are treated as a reduction of the capitalized cost of the asset to which they apply.

The company uses the successful-efforts method to account for its exploration and development activities. Under this method, costs are accumulated on a field-by-field basis with certain exploratory expenditures and exploratory dry holes being expensed as incurred. Costs of productive wells and development dry holes are capitalized and amortized using the unit-of-production method. The company carries as an asset exploratory well costs if (a) the well found a sufficient quantity of reserves to justify its completion as a producing well and (b) the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. Exploratory well costs not meeting these criteria are charged to expense.

 

Acquisition costs of proved properties are amortized using a unit-of-production method, computed on the basis of total proved oil and gas reserves. Unproved properties are assessed for impairment individually and valuation allowances against the capitalized costs are recorded based on the estimated economic chance of success and the length of time the company expects to hold the properties. Properties that are not individually significant are aggregated by groups and amortized based on development risk and average holding period. The valuation allowances are reviewed at least annually. Other exploratory expenditures, including geophysical costs and other dry hole costs, are expensed as incurred.

Maintenance and repair costs, including planned major maintenance, are expensed as incurred. Improvements that increase or prolong the service life or capacity of an asset are capitalized.

Production costs are expensed as incurred. Production involves lifting the oil and gas to the surface and gathering, treating, field processing and field storage of the oil and gas. The production function normally terminates at the outlet valve on the lease or field production storage tank. Production costs are those incurred to operate and maintain the company's wells and related equipment and facilities. They become part of the cost of oil and gas produced. These costs, sometimes referred to as lifting costs, include such items as labour cost to operate the wells and related equipment; repair and maintenance costs on the wells and equipment; materials, supplies and energy costs required to operate the wells and related equipment; and administrative expenses related to the production activity.

Depreciation and depletion for assets associated with producing properties begin at the time when production commences on a regular basis. Depreciation for other assets begins when the asset is in place and ready for its intended use. Assets under construction are not depreciated or depleted. Unit-of-production depreciation is applied to those wells, plant and equipment assets associated with productive depletable properties, and the unit-of-production rates are based on the amount of proved developed reserves of oil and gas. Depreciation of other plant and equipment is calculated using the straight-line method, based on the estimated service life of the asset. In general, refineries are depreciated over 25 years; other major assets, including chemical plants and service stations, are depreciated over 20 years.

Proved oil and gas properties held and used by the company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets.

The company estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. Cash flows used in impairment evaluations are developed using annually updated corporate plan investment evaluation assumptions for crude oil and natural gas commodity prices and foreign-currency exchange rates. Annual volumes are based on individual field production profiles, which are also updated annually.

In general, impairment analyses are based on reserve estimates used for internal planning and capital investment decisions. Where probable reserves exist, an appropriately risk-adjusted amount of these reserves may be included in the impairment evaluation. An asset would be impaired if the undiscounted cash flows were less than its carrying value. Impairments are measured by the amount by which the carrying value exceeds its fair value.

Based on definitions under the U.S. Securities and Exchange Commission's Rule 4-10(a) of Regulation S-X, activities involving oil and gas resources extracted by mining methods are permitted to be reported as oil and gas producing activities. Accounting policies for the company's activities involving oil and gas resources extracted by mining methods are the same as those described in this summary of significant accounting policies for the company's oil and gas producing activities. As a result, previous descriptions of accounting policies for the company's activities involving oil and gas resources extracted by mining methods become duplicative and are therefore removed from this summary.

Gains or losses on assets sold are included in "investment and other income" in the consolidated statement of income.

*
(108) Ingersoll-Rand plc (SEC Filing, XBRL), Form: 10-K; Filing date: 2/22/2011; SIC code:3822 (AUTO CONTROLS FOR REGULATING RESIDENTIAL & COMML ENVIRONMENTS)
Network: http://ingersollrand.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(109) INTERCONTINENTALEXCHANGE INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/9/2011; SIC code:6200 (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES)
Network: http://www.theice.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(110) INTERNATIONAL PAPER CO /NEW/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:2621 (PAPER MILLS)
Network: http://www.internationalpaper.com/taxonomy/role/DisclosureSummaryOfBusinessAndSignificantAccountingPoliciesPolicy
[Table]:

PLANTS, PROPERTIES AND EQUIPMENT

Plants, properties and equipment are stated at cost, less accumulated depreciation. Expenditures for betterments are capitalized, whereas normal repairs and maintenance are expensed as incurred. The units-of-production method of depreciation is used for major pulp and paper mills, and the straight-line method is used for other plants and equipment. Annual straight-line depreciation rates are, for buildings – 2 1/2% to 8 1/2%, and for machinery and equipment – 5% to 33%.

*
(111) INTUITIVE SURGICAL INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/1/2011; SIC code:3842 (ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES)
Network: http://www.intuitivesurgical.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property, Plant and Equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation. Property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives of the assets generally as follows:

    

                         Useful Lives                        

Building

   up to 30 years

Building improvements

   up to 15 years

Leasehold improvements

   Lesser of useful life or term of lease

Equipment and furniture

   5 years

Computer equipment

   3 years

Enterprise-wide software

   5 years

Purchased software

   Lesser of 3 years or life of license

Depreciation expense for years ended December 31, 2010, 2009 and 2008 was $23.7 million, $19.0 million and $14.6 million, respectively.

*
(112) Invesco Ltd. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:6282 (INVESTMENT ADVICE)
Network: http://invesco.com/role/DisclosureAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(113) ITT CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:3561 (PUMPS & PUMPING EQUIPMENT)
Network: http://itt.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
 
Plant, Property and Equipment
Plant, property and equipment, including capitalized interest applicable to major project expenditures, are recorded at cost. Depreciation is computed on a straight-line basis over the economic useful lives of the assets involved as follows: buildings and improvements – five to 40 years, machinery and equipment – two to 10 years, furniture and office equipment – three to seven years, and other – five to 40 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal.
*
(114) J P MORGAN CHASE & CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6021 (NATIONAL COMMERCIAL BANKS)
Network: http://jpmorganchase.com/role/BasisOfPresentationPolicies
[Table]:
Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. JPMorgan Chase computes depreciation using the straight-line method over the estimated useful life of an asset. For leasehold improvements, the Firm uses the straight-line method computed over the lesser of the remaining term of the leased facility or the estimated useful life of the leased asset.
JPMorgan Chase capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software’s expected useful life and reviewed for impairment on an ongoing basis.
*
(115) JOHNSON & JOHNSON (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:2834 (PHARMACEUTICAL PREPARATIONS)
Network: http://jnj.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
 
Property, plant and equipment are stated at cost. The Company utilizes the straight-line method of depreciation over the estimated useful lives of the assets:
 
         
Building and building equipment
    20 — 40 years  
Land and leasehold improvements
    10 — 20 years  
Machinery and equipment
    2 — 13 years  
 
The Company capitalizes certain computer software and development costs, included in machinery and equipment, when incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are amortized over the estimated useful lives of the software, which generally range from 3 to 8 years.
 
The Company reviews long-lived assets to assess recoverability using undiscounted cash flows. When certain events or changes in operating or economic conditions occur, an impairment assessment may be performed on the recoverability of the carrying value of these assets. If the asset is determined to be impaired, the loss is measured based on the difference between the asset’s fair value and its carrying value. If quoted market prices are not available, the Company will estimate fair value using a discounted value of estimated future cash flows.
*
(116) JOY GLOBAL INC (SEC Filing, XBRL), Form: 10-K; Filing date: 12/20/2010; SIC code:3532 (MINING MACHINERY & EQUIP (NO OIL & GAS FIELD MACH & EQUIP))
Network: http://joyglobal.com/role/SignificantAccountingPoliciesPolicies
[Table]:
Property, Plant and Equipment - Property, plant and equipment are stated at historical cost.  Expenditures for major renewals and improvements are capitalized, while maintenance and repair costs that do not significantly improve the related asset or extend its useful life are charged to expense as incurred.  For financial reporting purposes, plant and equipment are depreciated primarily by the straight-line method over the estimated useful lives of the assets which generally range from 5 to 45 years for improvements, from 10 to 45 years for buildings, from 3 to 12 years for machinery and equipment and 3 to 5 years for software.  Depreciation expense was $51.5 million, $49.3 million and $48.8 million for 2010, 2009, and 2008, respectively.  Depreciation claimed for income tax purposes is computed by accelerated methods.
*
(117) JUNIPER NETWORKS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:3576 (COMPUTER COMMUNICATIONS EQUIPMENT)
Network: http://www.juniper.net/role/Note2SummaryOfSignificantAccountingPoliciesLevel2Policies
[Table]:
Property and Equipment
 
Property and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the lesser of the estimated useful life or the lease term of the respective assets. The Company depreciates leasehold improvements over the lesser of the expected life of the lease or the assets, up to a maximum of ten years. The estimated useful life for land improvements is generally ten to fifteen years and the estimated useful life for all other depreciable assets is generally one and a half to five years.
*
(118) KELLOGG CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:2040 (GRAIN MILL PRODUCTS)
Network: http://www.kelloggcompany.com/role/DisclosureAccountingPoliciesPolicy
[Table]:
*
(119) KEYCORP /NEW/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:6021 (NATIONAL COMMERCIAL BANKS)
Network: http://key.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Premises and Equipment
 
Premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation and amortization. We determine depreciation of premises and equipment using the straight-line method over the estimated useful lives of the particular assets. Leasehold improvements are amortized using the straight-line method over the terms of the leases. Accumulated depreciation and amortization on premises and equipment totaled $1 billion at December 31, 2010, and $1.1 billion at December 31, 2009.
*
(120) KIMBERLY CLARK CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:2670 (CONVERTED PAPER & PAPERBOARD PRODS (NO CONTANERS/BOXES))
Network: http://kimberly-clark.com/role/DisclosureAccountingPoliciesPolicy
[Table]:

 

Property and Depreciation

 

For financial reporting purposes, property, plant and equipment are stated at cost and are depreciated principally on the straight-line method. Buildings are depreciated over their estimated useful lives, primarily 40 years. Machinery and equipment are depreciated over their estimated useful lives, primarily ranging from 16 to 20 years. For income tax purposes, accelerated methods of depreciation are used. Purchases of computer software are capitalized. External costs and certain internal costs (including payroll and payroll-related costs of employees) directly associated with developing significant computer software applications for internal use are capitalized. Training and data conversion costs are expensed as incurred. Computer software costs are amortized on the straight-line method over the estimated useful life of the software, which generally does not exceed five years.

 

Estimated useful lives are periodically reviewed and, when warranted, changes are made to them. Long-lived assets, including computer software, are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss would be indicated when estimated undiscounted future cash flows from the use and eventual disposition of an asset group, which are identifiable and largely independent of the cash flows of other asset groups, are less than the carrying amount of the asset group. Measurement of an impairment loss would be based on the excess of the carrying amount of the asset over its fair value. Fair value is measured using discounted cash flows or independent appraisals, as appropriate. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the Consolidated Balance Sheet and any gain or loss on the transaction is included in income.

 

The cost of major maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is charged to operations as incurred. Start-up costs for new or expanded facilities are expensed as incurred.

*
(121) Kinder Morgan Energy Partners L P (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:4922 (NATURAL GAS TRANSMISSION)
Network: http://kindermorgan.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property, Plant and Equipment
 
Capitalization, Depreciation and Depletion and Disposals
 
We report property, plant and equipment at its acquisition cost.  We expense costs for maintenance and repairs in the period incurred.  As discussed below, for assets used in our oil and gas producing activities or in our unregulated bulk and liquids terminal activities, the cost of property, plant and equipment sold or retired and the related depreciation are removed from our balance sheet in the period of sale or disposition, and we record any related gains and losses from sales or retirements to income or expense accounts.  For our pipeline system assets, we generally charge the original cost of property sold or retired to accumulated depreciation and amortization, net of salvage and cost of removal.  We do not include retirement gain or loss in income except in the case of significant retirements or sales.  Gains and losses on minor system sales, excluding land, are recorded to the appropriate accumulated depreciation reserve.  Gains and losses for operating systems sales and land sales are booked to income or expense accounts in accordance with regulatory accounting guidelines.
 
We generally compute depreciation using the straight-line method based on estimated economic lives; however, for certain depreciable assets, we employ the composite depreciation method, applying a single depreciation rate for a group of assets.  Generally, we apply composite depreciation rates to functional groups of property having similar economic characteristics.  The rates range from 1.6% to 12.5%, excluding certain short-lived assets such as vehicles.  Depreciation estimates are based on various factors, including age (in the case of acquired assets), manufacturing specifications, technological advances and historical data concerning useful lives of similar assets.  Uncertainties that impact these estimates included changes in laws and regulations relating to restoration and abandonment requirements, economic conditions, and supply and demand in the area.  When assets are put into service, we make estimates with respect to useful lives (and salvage values where appropriate) that we believe are reasonable.  However, subsequent events could cause us to change our estimates, thus impacting the future calculation of depreciation and amortization expense.  Historically, adjustments to useful lives have not had a material impact on our aggregate depreciation levels from year to year.
 
Our oil and gas producing activities are accounted for under the successful efforts method of accounting.  Under this method costs that are incurred to acquire leasehold and subsequent development costs are capitalized.  Costs that are associated with the drilling of successful exploration wells are capitalized if proved reserves are found.  Costs associated with the drilling of exploratory wells that do not find proved reserves, geological and geophysical costs, and costs of certain non-producing leasehold costs are expensed as incurred.  The capitalized costs of our producing oil and gas properties are depreciated and depleted by the units-of-production method.  Other miscellaneous property, plant and equipment are depreciated over the estimated useful lives of the asset.
 
A gain on the sale of  property, plant and equipment used in our oil and gas producing activities or in our bulk and liquids terminal activities is calculated as the difference between the cost of the asset disposed of, net of depreciation, and the sales proceeds received.  A gain on an asset disposal is recognized in income in the period that the sale is closed.  A loss on the sale of  property, plant and equipment is calculated as the difference between the cost of the asset disposed of, net of depreciation, and the sales proceeds received or the maket value if the asset is being held for sale.  A loss is recognized when the asset is sold or when the net cost of an asset held for sale is greater than the market value of the asset.
 
 
126

 
In addition, we engage in enhanced recovery techniques in which carbon dioxide is injected into certain producing oil reservoirs.  In some cases, the acquisition cost of the carbon dioxide associated with enhanced recovery is capitalized as part of our development costs when it is injected.  The acquisition cost associated with pressure maintenance operations for reservoir management is expensed when it is injected.  When carbon dioxide is recovered in conjunction with oil production, it is extracted and re-injected, and all of the associated costs are expensed as incurred.  Proved developed reserves are used in computing units of production rates for drilling and development costs, and total proved reserves are used for depletion of leasehold costs.  The units-of-production rate is determined by field.
 
As discussed in "-Inventories" above, we own and maintain natural gas in underground storage as part of our inventory. This component of our inventory represents the portion of gas stored in an underground storage facility generally known as working gas, and represents an estimate of the portion of gas in these facilities available for routine injection and withdrawal.  In addition to this working gas, underground gas storage reservoirs contain injected gas which is not routinely cycled but, instead, serves the function of maintaining the necessary pressure to allow efficient operation of the facility.  This gas, generally known as cushion gas, is divided into the categories of recoverable cushion gas and unrecoverable cushion gas, based on an engineering analysis of whether the gas can be economically removed from the storage facility at any point during its life.  The portion of the cushion gas that is determined to be unrecoverable is considered to be a permanent part of the facility itself (thus, part of our "Property, plant and equipment, net" balance in our accompanying consolidated balance sheets), and this unrecoverable portion is depreciated over the facility's estimated useful life.  The portion of the cushion gas that is determined to be recoverable is also considered a component of the facility but is not depreciated because it is expected to ultimately be recovered and sold.
 
Impairments
 
We measure long-lived assets that are to be disposed of by sale at the lower of book value or fair value less the cost to sell, and we review for the impairment of long-lived assets whenever events or changes in circumstances indicate that our carrying amount of an asset may not be recoverable.  We would recognize an impairment loss when estimated future cash flows expected to result from our use of the asset and its eventual disposition is less than its carrying amount.
 
We evaluate our oil and gas producing properties for impairment of value on a field-by-field basis or, in certain instances, by logical grouping of assets if there is significant shared infrastructure, using undiscounted future cash flows based on total proved and risk-adjusted probable and possible reserves.  For the purpose of impairment testing, we use the forward curve prices as observed at the test date; however, due to differences between the forward curve and spot prices, the forward curve cash flows may differ from the amounts presented in our supplemental information on oil and gas producing activities disclosed in Note 20.
 
Oil and gas producing properties deemed to be impaired are written down to their fair value, as determined by discounted future cash flows based on total proved and risk-adjusted probable and possible reserves or, if available, comparable market values.  Unproved oil and gas properties that are individually significant are periodically assessed for impairment of value, and a loss is recognized at the time of impairment.  Due to the decline in crude oil and natural gas prices during 2008, on December 31, 2008, we conducted an impairment test on our oil and gas producing properties in our CO2 business segment and determined that no impairment was necessary.
*
(122) L 3 COMMUNICATIONS HOLDINGS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:3663 (RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT)
Network: http://l-3com.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
 
Property, Plant and Equipment: Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed by applying principally the straight-line method to the estimated useful lives of the related assets. Useful lives range substantially from 10 to 40 years for buildings and improvements and 3 to 10 years for machinery, equipment, furniture and fixtures. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. When property or equipment is retired or otherwise disposed of, the net book value of the asset is removed from the Company’s balance sheet and the net gain or loss is included in the determination of operating income. Property, plant and equipment acquired as part of a business acquisition is valued at fair value.
*
(123) LEUCADIA NATIONAL CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:2400 (LUMBER & WOOD PRODUCTS (NO FURNITURE))
Network: http://leucadia.com/role/DisclosureSignificantAccountingPoliciesPolicies
[Table]:
*
(124) LIBERTY MEDIA CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:4841 (CABLE & OTHER PAY TELEVISION SERVICES)
Network: http://www.libertymedia.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:
*
(125) Life Technologies Corp (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:2836 (BIOLOGICAL PRODUCTS, (NO DISGNOSTIC SUBSTANCES))
Network: http://lifetechnologies.com/role/BusinessActivitySummaryOfSignificantAccountingPoliciesAndSignificantAccountsPolicies
[Table]:
 
Valuation of Long-Lived Assets and Intangibles
 
The Company reviews long-lived assets and intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We periodically evaluate the original assumptions and rationale utilized in the establishment of the carrying value and estimated lives of our long-lived assets. The criteria used for these evaluations include management’s estimate of the asset’s continuing ability to generate income from operations and positive cash flow in future periods as well as the strategic significance of any intangible asset in the Company’s business objectives. If assets are considered to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets, which is determined by applicable market prices, when available. There was no material impairment loss recognized for long-lived assets during the years ended December 31, 2010, 2009 and 2008.
 
Property and Equipment
 
We capitalize major renewals and improvements that significantly add to productive capacity or extend the life of an asset. We expense repairs, maintenance, and minor renewals and improvements as incurred. We remove the cost of assets and related depreciation from the related accounts on the balance sheet when assets are sold, or otherwise disposed of, and any related gains or losses are reflected in current earnings. Leased capital assets are included in property and equipment. Depreciation of property and equipment under capital leases is included in depreciation expense. We compute depreciation expense of owned property and equipment based on the expected useful lives of the assets primarily using the straight-line method. We amortize leasehold improvements over their estimated useful lives or the term of the applicable lease, whichever is less.
 
Capitalized internal-use software costs include only those direct costs associated with the actual development or acquisition of computer software for internal use, including costs associated with the design, coding, installation and testing of the system. Costs associated with preliminary development, such as the evaluation and selection of alternatives, as well as training, maintenance and support are expensed as incurred. At December 31, 2010 and 2009 the Company had $129.0 million and $114.6 million in unamortized capitalized software costs, respectively. For the years ended December 31, 2010, 2009 and 2008, the Company amortized into expense $25.2 million, $19.6 million and $10.0 million, respectively, related to capitalized computer software costs.
*
(126) LINCOLN NATIONAL CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:6311 (LIFE INSURANCE)
Network: http://lfg.com/role/DisclosureNatureOfOperationsBasisOfPresentationAndSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Other Long-Lived Assets

 

Property and equipment owned for company use is included in other assets on our Consolidated Balance Sheets and is carried at cost less allowances for depreciation. Provisions for depreciation of investment real estate and property and equipment owned for company use are computed principally on the straight-line method over the estimated useful lives of the assets, which include buildings, computer hardware and software and other property and equipment.

 

We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value.

 

Long-lived assets to be disposed of by abandonment or in an exchange for a similar productive long-lived asset are classified as held-for-use until they are disposed.

 

Long-lived assets to be sold are classified as held-for-sale and are no longer depreciated. Certain criteria have to be met in order for the long-lived asset to be classified as held-for-sale, including that a sale is probable and expected to occur within one year. Long-lived assets classified as held-for-sale are recorded at the lower of their carrying amount or fair value less cost to sell.

 

*
(127) LOCKHEED MARTIN CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:3760 (GUIDED MISSILES & SPACE VEHICLES & PARTS)
Network: http://www.lockheedmartin.com/taxonomy/role/DisclosureSignificantAccountingPoliciesPolicy
[Table]:
*
(128) LOEWS CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:6331 (FIRE, MARINE & CASUALTY INSURANCE)
Network: http://www.loews.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable

Property, plant and equipment – Property, plant and equipment is carried at cost less accumulated depreciation, depletion and amortization ("DD&A"). Depreciation is computed principally by the straight-line method over the estimated useful lives of the various classes of properties. Leaseholds and leasehold improvements are depreciated or amortized over the terms of the related leases (including optional renewal periods where appropriate) or the estimated lives of improvements, if less than the lease term.

The principal service lives used in computing provisions for depreciation are as follows:

 

      Years  

Pipeline equipment

     30 to 50   

Offshore drilling equipment

     15 to 30   

Other

     3 to 40   

HighMount follows the full cost method of accounting for natural gas and NGL exploration and production activities. Under the full cost method, all direct costs of property acquisition, exploration and development activities are capitalized. These capitalized costs are subject to a quarterly ceiling test. Under the ceiling test, amounts capitalized are limited to the present value of estimated future net revenues to be derived from the anticipated production of proved natural gas and NGL reserves, assuming an average price during the twelve month period adjusted for cash flow hedges in place, and limiting the classification of proved undeveloped reserves to locations scheduled to be drilled within five years. If net capitalized costs exceed the ceiling test at the end of any quarterly period, then a permanent write-down of the assets must be recognized in that period. A write-down may not be reversed in future periods, even though higher natural gas and NGL prices may subsequently increase the ceiling. Approximately 5.8% (unaudited) of HighMount's total proved reserves as of December 31, 2010 are hedged by qualifying cash flow hedges, for which hedge adjusted prices were used to calculate estimated future net revenue. Future cash flows associated with settling asset retirement obligations that have been accrued in the Consolidated Balance Sheets are excluded from HighMount's calculations of discounted cash flows under the full cost ceiling test.

Depletion of natural gas and NGL producing properties is computed using the units-of-production method. Under the full cost method, the base of costs subject to depletion also includes estimated future costs to be incurred in developing proved natural gas and NGL reserves, as well as capitalized asset retirement costs, net of projected salvage values. The costs of investments in unproved properties including associated exploration-related costs are initially excluded from the depletable base. As the unproved properties are evaluated, a ratable portion of the capitalized costs is periodically reclassified to the depletable base, determined on a property by property basis, over the terms of underlying leases. Once a property has been completely evaluated, any remaining capitalized costs are then transferred to the depletable base. In addition, proceeds from the sale or other disposition of natural gas and NGL properties are accounted for as reductions of capitalized cost, unless the sale would significantly alter the relationship between capitalized costs and proved reserves, in which case, a gain or loss is recognized.

*
(129) LUBRIZOL CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:2860 (INDUSTRIAL ORGANIC CHEMICALS)
Network: http://www.lubrizol.com/taxonomy/role/NotesToFinancialStatementsSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable
Property and Equipment – Property and equipment are carried at cost. Repair and maintenance costs are charged against income while renewals and betterments are capitalized as additions to the related assets. Costs incurred for computer software developed or obtained for internal use are capitalized for application development activities and expensed immediately for preliminary project activities or post-implementation activities. Accelerated depreciation methods are used in computing depreciation on certain machinery and equipment for approximately 1% and 3% of the depreciable assets at December 31, 2010 and 2009, respectively. The remaining assets are depreciated using the straight-line method. The estimated useful lives range from 10 to 40 years for buildings and building and land improvements, 5 to 20 years for machinery and equipment and 5 to 7 years for software.
*
(130) M&T BANK CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/22/2011; SIC code:6022 (STATE COMMERCIAL BANKS)
Network: http://mtb.com/role/SignificantAccountingPoliciesPloicies
[Table]:
 
Premises and equipment
Premises and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed principally using the straight-line method over the estimated useful lives of the assets.
*
(131) Marathon Oil Corporation (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:2911 (PETROLEUM REFINING)
Network: http://www.marathon.com/role/DisclosureSummaryOfPrincipalAccountingPoliciesPolicies
[Table]:

Depreciation, depletion and amortization – Capitalized costs to acquire oil and natural gas properties, which include our bitumen mining and upgrading facilities, are depreciated and depleted on a units-of-production basis based on estimated proved reserves. Capitalized costs of exploratory wells and development costs are depreciated and depleted on a units-of-production basis based on estimated proved developed reserves. Support equipment and other property, plant and equipment related to oil and gas producing activities are depreciated on a straight-line basis over their estimated useful lives which range from 1 to 43 years.

Property, plant and equipment unrelated to oil and gas producing activities is recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, which range from 3 to 42 years.

*
(132) MARSH & MCLENNAN COMPANIES, INC. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6411 (INSURANCE AGENTS, BROKERS & SERVICE)
Network: http://www.mmc.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(133) MASCO CORP /DE/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/18/2011; SIC code:2430 (MILLWOOD, VENEER, PLYWOOD, & STRUCTURAL WOOD MEMBERS)
Network: http://masco.com/role/AccountingPoliciesPolicies
[Table]:
 
Property and Equipment.  Property and equipment, including significant betterments to existing facilities, are recorded at cost. Upon retirement or disposal, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the consolidated statements of income. Maintenance and repair costs are charged against earnings as incurred.
 
The Company reviews its property and equipment as an event occurs or circumstances change that would more likely than not reduce the fair value of the property and equipment below the carrying amount. If the carrying amount of property and equipment is not recoverable from its undiscounted cash flows, then the Company would recognize an impairment loss for the difference between the carrying amount and the current fair value. Further, the Company evaluates the remaining useful lives of property and equipment at each reporting period to determine whether events and circumstances warrant a revision to the remaining depreciation periods.
*
(134) MASTERCARD INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:7389 (SERVICES-BUSINESS SERVICES, NEC)
Network: http://www.mastercard.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(135) MATTEL INC /DE/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:3942 (DOLLS & STUFFED TOYS)
Network: http://www.mattel.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(136) McAfee, Inc. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:7372 (SERVICES-PREPACKAGED SOFTWARE)
Network: http://mcafee.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
 
Property and Equipment
 
Property and equipment are presented at cost less accumulated depreciation and amortization (see Note 6). Depreciation and amortization of property and equipment are computed using the straight-line method over the estimated useful lives as follows:
 
  •  building — interior — seven years; exterior — twenty years;
 
  •  office furniture and equipment — three to five years;
 
  •  computer hardware, networking hardware and software — three to five years; and
 
  •  leasehold improvements — the shorter of the lease term, including assumed lease renewal periods that are reasonably assured, or the estimated useful life of the asset.
 
The costs associated with projects eligible for capitalization are accumulated on the consolidated balance sheets until the project is substantially complete and is placed into service.
 
When assets are disposed, we remove the asset and accumulated depreciation from our records and recognize the related gain or loss in earnings.
 
Repairs and maintenance expenditures, which are not considered improvements and do not extend the useful life of property and equipment, are expensed as incurred.
*
(137) MCDONALDS CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:5812 (RETAIL-EATING PLACES)
Network: http://www.mcdonalds.com/taxonomy/role/NotesToFinancialStatementsSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable

PROPERTY AND EQUIPMENT

Property and equipment are stated at cost, with depreciation and amortization provided using the straight-line method over the following estimated useful lives: buildings–up to 40 years; leasehold improvements–the lesser of useful lives of assets or lease terms, which generally include option periods; and equipment–three to 12 years.

*
(138) MEDCO HEALTH SOLUTIONS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/22/2011; SIC code:5912 (RETAIL-DRUG STORES AND PROPRIETARY STORES)
Network: http://medco.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property and Equipment, Net. Property and equipment, net, is stated at cost, less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method for assets with useful lives as follows: buildings, 45 years; machinery, equipment and office furnishings, three to 15 years; and computer software, three to five years. Leasehold improvements are amortized over the shorter of the remaining life of the lease or the useful lives of the assets. The costs of computer software developed or obtained for internal use are capitalized and amortized on a straight-line basis over three to five years. Costs for general and administrative expenses, overhead, maintenance and training, as well as the cost of software coding that does not add functionality to existing systems, are expensed as incurred.
*
(139) METLIFE INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:6311 (LIFE INSURANCE)
Network: http://metlife.com/role/BusinessBasisOfPresentationAndSummaryOfSignificantAccountingPoliciesPolicies
[Table]:
 
Property, equipment and leasehold improvements, which are included in other assets, are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the assets, as appropriate. The estimated life for company occupied real estate property is generally 40 years. Estimated lives generally range from five to ten years for leasehold improvements and three to seven years for all other property and equipment. The cost basis of the property, equipment and leasehold improvements was $2.4 billion and $1.9 billion at December 31, 2010 and 2009, respectively. Accumulated depreciation and amortization of property, equipment and leasehold improvements was $1.2 billion and $1.0 billion at December 31, 2010 and 2009, respectively. Related depreciation and amortization expense was $152 million, $152 million and $150 million for the years ended December 31, 2010, 2009 and 2008, respectively.
 
Computer software, which is included in other assets, is stated at cost, less accumulated amortization. Purchased software costs, as well as certain internal and external costs incurred to develop internal-use computer software during the application development stage, are capitalized. Such costs are amortized generally over a four-year period using the straight-line method. The cost basis of computer software was $2.0 billion and $1.7 billion at December 31, 2010 and 2009, respectively. Accumulated amortization of capitalized software was $1.4 billion and $1.2 billion at December 31, 2010 and 2009, respectively. Related amortization expense was $189 million, $171 million and $153 million for the years ended December 31, 2010, 2009 and 2008, respectively.
*
(140) MOLSON COORS BREWING CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/22/2011; SIC code:2082 (MALT BEVERAGES)
Network: http://www.molsoncoors.com/role/DisclosureBasisOfPresentationAndSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Properties

        Properties are carried at original cost less accumulated depreciation. Certain equipment held under capital lease is classified as equipment and amortized using the straight-line method or estimated useful life, whichever is shorter over the lease term. Lease amortization is included in depreciation expense. Expenditures for new facilities and improvements that substantially extend the capacity or useful life of an asset are capitalized. Start-up costs associated with manufacturing facilities, but not related to construction, are expensed as incurred. Ordinary repairs and maintenance are expensed as incurred.

        Our returnable containers (including returnable bottles, kegs and pallets) are recorded at acquisition cost and are classified within Properties. Returnable containers consist of returnable bottles, kegs and pallets that are both in our direct control within our breweries, warehouses and distributions facilities and those that we indirectly control in the market through our agreements with our customers and other brewers and for which a deposit is received. The deposits received on the Company's returnable containers in the market are recorded as deposit liabilities, included as current liabilities within Accrued Expenses and other liabilities in the Consolidated Balance Sheets. See Note 11, "Properties."

        Historically our returnable bottles and pallets were classified as current assets within Inventories, Packaging Materials. During the fourth quarter of 2010, we concluded that the classification of our returnable bottles and pallets as noncurrent assets within Properties is a preferable presentation under U.S. GAAP and is more consistent with industry practice and as such we have classified these amounts as Properties in the Consolidated Balance Sheets and adjusted our Consolidated Statements of Cash Flows accordingly, reflecting the purchases of returnable bottles and pallets as investing activities. The amounts presented in our historical financial statements have also been retrospectively adjusted to conform to the current year presentation as follows:

 
   
  As of and
for the year ended
December 26, 2009
 
 
   
  As previously
reported
  As adjusted  
 
   
  (in millions)
 

Inventories, Packaging materials

  Consolidated Balance Sheet   $ 63.2   $ 8.3  

Total current assets

  Consolidated Balance Sheet   $ 1,762.8   $ 1,707.9  

Properties

  Consolidated Balance Sheet   $ 1,292.5   $ 1,347.4  

Depreciation and amortization—Operating activities

  Consolidated Statement of Cash Flows   $ 187.4   $ 208.0  

Inventories—Operating Activities

  Consolidated Statement of Cash Flows   $ (11.7 ) $ 1.8  

Net cash provided by operating activities

  Consolidated Statement of Cash Flows   $ 824.2   $ 858.3  

Additions to properties and intangible assets—Investing activities

  Consolidated Statement of Cash Flows   $ (124.7 ) $ (158.8 )

Net cash used in investing activities

  Consolidated Statement of Cash Flows   $ (194.1 ) $ (228.2 )

 

 
   
  For the year ended December 28, 2008  
 
   
  As previously
reported
  As adjusted  
 
   
  (in millions)
 

Depreciation and amortization—Operating activities

  Consolidated Statement of Cash Flows   $ 273.4   $ 294.3  

Inventories—Operating Activities

  Consolidated Statement of Cash Flows   $ 39.3   $ 37.5  

Net cash provided by operating activities

  Consolidated Statement of Cash Flows   $ 411.5   $ 430.6  

Additions to properties and intangible assets—Investing activities

  Consolidated Statement of Cash Flows   $ (230.5 ) $ (249.6 )

Net cash used in investing activities

  Consolidated Statement of Cash Flows   $ (269.5 ) $ (288.6 )

        Note that the above changes do not impact the Consolidated Statements of Operations as the expense related to the returnable bottles and pallets has historically been recorded within Costs of goods sold and will continue to be classified as such. Additionally, the amounts presented in our historical quarterly financial statements have also been retrospectively adjusted to conform to the current year presentation as further discussed in Note 22, "Quarterly Financial Information (Unaudited)."

*
(141) MOODYS CORP /DE/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:7320 (SERVICES-CONSUMER CREDIT REPORTING, COLLECTION AGENCIES)
Network: http://www.moodys.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(142) MORGAN STANLEY (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6211 (SECURITY BROKERS, DEALERS & FLOTATION COMPANIES)
Network: http://www.morganstanley.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Premises, Equipment and Software Costs.

 

Premises and equipment consist of buildings, leasehold improvements, furniture, fixtures, computer and communications equipment, power plants, tugs, barges, terminals, pipelines and software (externally purchased and developed for internal use). Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided by the straight-line method over the estimated useful life of the asset. Estimated useful lives are generally as follows: buildings—39 years; furniture and fixtures—7 years; computer and communications equipment—3 to 8 years; power plants—15 years; tugs and barges—15 years; and terminals and pipelines—3 to 25 years. Estimated useful lives for software costs are generally 3 to 5 years.

 

Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or, where applicable, the remaining term of the lease, but generally not exceeding: 25 years for building structural improvements and 15 years for other improvements.

 

Premises, equipment and software costs are tested for impairment whenever events or changes in circumstances suggest that an asset's carrying value may not be fully recoverable in accordance with current accounting guidance.

*
(143) Motorola Solutions, Inc. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/18/2011; SIC code:3663 (RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT)
Network: http://www.motorola.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
Property, Plant and Equipment:    Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using straight-line and declining-balance methods, based on the estimated useful lives of the assets (buildings and building equipment, 5-40 years; machinery and equipment, 2-10 years) and commences once the assets are ready for their intended use.
*
(144) MURPHY OIL CORP /DE (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:2911 (PETROLEUM REFINING)
Network: http://www.murphyoilcorp.com/taxonomy/role/NotesToFinancialStatementsSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable

PROPERTY, PLANT AND EQUIPMENT – The Company uses the successful efforts method to account for exploration and development expenditures. Leasehold acquisition costs are capitalized. If proved reserves are found on an undeveloped property, leasehold cost is transferred to proved properties. Costs of undeveloped leases are generally expensed over the life of the leases. Exploratory well costs are capitalized pending determination about whether proved reserves have been found. In certain cases, a determination of whether a drilled exploratory well has found proved reserves can not be made immediately. This is generally due to the need for a major capital expenditure to produce and/or evacuate the hydrocarbon(s) found. The determination of whether to make such a capital expenditure is usually dependent on whether further exploratory wells find a sufficient quantity of additional reserves. The Company continues to capitalize exploratory well costs in Property, Plant and Equipment when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The Company reevaluates its capitalized drilling costs at least annually to ascertain whether drilling costs continue to qualify for ongoing capitalization. Other exploratory costs, including geological and geophysical costs, are charged to expense as incurred. Development costs, including unsuccessful development wells, are capitalized. Interest is capitalized on development projects that are expected to take one year or more to complete.

Oil and gas properties are evaluated by field for potential impairment. Other properties are evaluated for impairment on a specific asset basis or in groups of similar assets as applicable. An impairment is recognized when the estimated undiscounted future net cash flows of an asset are less than its carrying value. If an impairment occurs, the carrying value of the impaired asset is reduced to fair value.

The Company records a liability for asset retirement obligations (ARO) equal to the fair value of the estimated cost to retire an asset. The ARO liability is initially recorded in the period in which the obligation meets the definition of a liability, which is generally when a well is drilled or the asset is placed in service. The ARO liability is estimated by the Company’s engineers using existing regulatory requirements and anticipated future inflation rates. When the liability is initially recorded, the Company increases the carrying amount of the related long-lived asset by an amount equal to the original liability. The liability is increased over time to reflect the change in its present value, and the capitalized cost is depreciated over the useful life of the related long-lived asset. The Company reevaluates the adequacy of its recorded ARO liability at least annually. Actual costs of asset retirements such as dismantling oil and gas production facilities and site restoration are charged against the related liability. Any difference between costs incurred upon settlement of an asset retirement obligation and the recorded liability is recognized as a gain or loss in the Company’s earnings.

Depreciation and depletion of producing oil and gas properties is recorded based on units of production. Unit rates are computed for unamortized exploration drilling and development costs using proved developed reserves; unit rates for unamortized leasehold costs and asset retirement costs are amortized over proved reserves. Proved reserves are estimated by the Company’s engineers and are subject to future revisions based on availability of additional information. Refineries, certain marketing facilities and certain common natural gas processing facilities are depreciated primarily using the composite straight-line method with depreciable lives ranging from 14 to 25 years. Gasoline stations and other properties are depreciated over 3 to 20 years by individual unit on the straight-line method. Gains and losses on asset disposals or retirements are included in income as a separate component of revenues.

Turnarounds for major processing units are scheduled at four to five year intervals at the Company’s three refineries. Turnarounds for coking units at Syncrude Canada Ltd. are scheduled at intervals of two to three years. Turnaround work associated with various other less significant units at the Company’s refineries and Syncrude will vary depending on operating requirements and events. Murphy defers turnaround costs incurred and amortizes such costs through Operating Expenses over the period until the next scheduled turnaround. All other maintenance and repairs are expensed as incurred. Renewals and betterments are capitalized. Major turnarounds occurred in 2010 at both the Meraux, Louisiana, and Milford Haven, Wales, refineries.

*
(145) NATIONAL OILWELL VARCO INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:3533 (OIL & GAS FIELD MACHINERY & EQUIPMENT)
Network: http://nov.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property, plant and equipment are recorded at cost. Expenditures for major improvements that extend the lives of property and equipment are capitalized while minor replacements, maintenance and repairs are charged to operations as incurred. Disposals are removed at cost less accumulated depreciation with any resulting gain or loss reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of individual items. Depreciation expense was $262 million, $249 million and $222 million for the years ended December 31, 2010, 2009 and 2008, respectively. The estimated useful lives of the major classes of property, plant and equipment are included in Note 6 to the consolidated financial statements.
*
(146) NEWMONT MINING CORP /DE/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:1040 (GOLD AND SILVER ORES)
Network: http://newmont.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property, Plant and Mine Development

 

Facilities and equipment

 

Expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and recorded at cost. The facilities and equipment are amortized using the straight-line method at rates sufficient to amortize such costs over the estimated productive lives, which do not exceed the related estimated mine lives, of such facilities based on proven and probable reserves.

 

Mine Development

 

Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. Costs incurred before mineralization are classified as proven and probable reserves are expensed and classified as Exploration or Advanced projects, research and development expense. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves.

 

Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting non-reserve mineralization to proven and probable reserves and the benefit is expected to be realized over a period beyond one year. All other drilling and related costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of Costs applicable to sales.

 

The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of de minimis saleable materials may occur during development and are recorded as Other income, net of incremental mining and processing costs.

 

The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory. The Company's definition of a mine and the mine's production phase may differ from that of other companies in the mining industry resulting in incomparable allocations of stripping costs to deferred mine development and production costs. Other mining companies may expense pre-stripping costs associated with subsequent pits within a mining complex.

 

Mine development costs are amortized using the units-of-production (“UOP”) method based on estimated recoverable ounces or pounds in proven and probable reserves. To the extent that these costs benefit an entire ore body, they are amortized over the estimated life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block or area.

 

Mineral Interests

 

Mineral interests include acquired interests in production, development and exploration stage properties. The mineral interests are capitalized at their fair value at the acquisition date, either as an individual asset purchase or as part of a business combination.

 

The value of such assets is primarily driven by the nature and amount of mineralized material believed to be contained in such properties. Production stage mineral interests represent interests in operating properties that contain proven and probable reserves. Development stage mineral interests represent interests in properties under development that contain proven and probable reserves. Exploration stage mineral interests represent interests in properties that are believed to potentially contain mineralized material consisting of (i) mineralized material such as inferred material within pits; measured, indicated and inferred material with insufficient drill spacing to qualify as proven and probable reserves; and inferred material in close proximity to proven and probable reserves; (ii) around-mine exploration potential such as inferred material not immediately adjacent to existing reserves and mineralization, but located within the immediate mine area; (iii) other mine-related exploration potential that is not part of measured, indicated or inferred material and is comprised mainly of material outside of the immediate mine area; (iv) greenfields exploration potential that is not associated with any other production, development or exploration stage property, as described above; or (v) any acquired right to explore or extract a potential mineral deposit. The Company's mineral rights generally are enforceable regardless of whether proven and probable reserves have been established. In certain limited situations, the nature of a mineral right changes from an exploration right to a mining right upon the establishment of proven and probable reserves. The Company has the ability and intent to renew mineral interests where the existing term is not sufficient to recover all identified and valued proven and probable reserves and/or undeveloped mineralized material.

*
(147) NII HOLDINGS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:4812 (RADIOTELEPHONE COMMUNICATIONS)
Network: http://www.nii.com/role/DisclosureSummaryOfOperationsAndSignificantAccountingPoliciesPolicy
[Table]:
*
(148) Noble Corp / Switzerland (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:1381 (DRILLING OIL & GAS WELLS)
Network: http://noblecorp.com/role/OrganizationAndSignificantAccountingPoliciesPolicies
[Table]:
Property and Equipment
Property and equipment is stated at cost, reduced by provisions to recognize economic impairment in value whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. At both December 31, 2010 and 2009, there was $3.6 billion and $2.3 billion of construction-in-progress, respectively. Such amounts are included in “Drilling equipment and facilities” in the accompanying Consolidated Balance Sheets. Major replacements and improvements are capitalized. When assets are sold, retired or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and the gain or loss is recognized. Drilling equipment and facilities are depreciated using the straight-line method over their estimated useful lives as of the date placed in service or date of major refurbishment. Estimated useful lives of our drilling equipment range from three to thirty years. Other property and equipment is depreciated using the straight-line method over useful lives ranging from two to twenty-five years. Included in accounts payable was $161 million and $47 million of capital accruals as of December 31, 2010 and 2009, respectively.
Interest is capitalized on construction-in-progress at the interest rate on debt incurred for construction or at the weighted average cost of debt outstanding during the period of construction. Capitalized interest for the years ended December 31, 2010, 2009 and 2008 was $83 million, $55 million and $48 million, respectively.
Overhauls and scheduled maintenance of equipment are performed based on the number of hours operated in accordance with our preventative maintenance program. Routine repair and maintenance costs are charged to expense as incurred; however, the costs of the overhauls and scheduled major maintenance projects that benefit future periods and which typically occur every three to five years are deferred when incurred and amortized over an equivalent period. The deferred portion of these major maintenance projects is included in “Other Assets” in the Consolidated Balance Sheets. Such amounts totaled $183 million and $181 million at December 31, 2010 and 2009, respectively.
Amortization of deferred costs for major maintenance projects is reflected in “Depreciation and amortization” in the accompanying Consolidated Statements of Income. The amount of such amortization was $107 million, $102 million and $91 million for the years ended December 31, 2010, 2009 and 2008, respectively. Total repair and maintenance expense for the years ended December 31, 2010, 2009 and 2008, exclusive of amortization of deferred costs for major maintenance projects, was $186 million, $175 million and $169 million, respectively.
We evaluate the realization of property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss on our property and equipment exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Any impairment loss recognized represents the excess of the asset’s carrying value over the estimated fair value.
In May 2009, our jackup, the Noble David Tinsley, experienced a “punch-through” while the rig was being positioned on location offshore Qatar. The incident involved the sudden penetration of all three legs through the sea bottom, which resulted in severe damage to the legs and the rig. We recorded a charge of $17 million during the quarter ended June 30, 2009 related to this involuntary conversion, which includes approximately $9 million for the write-off of the damaged legs.
During the first quarter of 2009, we recognized a charge of $12 million related to the Noble Fri Rodli, a submersible that has been cold stacked since October 2007. We recorded the charge as a result of a decision to evaluate disposition alternatives for this rig.
*
(149) NORFOLK SOUTHERN CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/17/2011; SIC code:4011 (RAILROADS, LINE-HAUL OPERATING)
Network: http://www.nscorp.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Properties

"Properties" are stated principally at cost and are depreciated using the group method of depreciation whereby assets with similar characteristics, use, and expected lives are grouped together in asset classes and depreciated using a composite depreciation rate.  This methodology treats each asset class as a pool of resources, not as singular items.  NS uses more than 60 depreciable asset classes.  The primary depreciation method for NS' asset base is group life.  Units of production is the principal method of depreciation for rail in high density corridors and for depletion of natural resources (see Note 2).  Remaining properties are depreciated generally using the straight-line method over the lesser of estimated service or lease lives.  Depreciation in the Consolidated Statements of Cash Flows includes both depreciation and depletion.

NS' depreciation expense is based on management's assumptions concerning expected service lives of its properties as well as the expected net salvage that will be received upon their retirement.  In developing these assumptions, NS' management utilizes periodic depreciation studies that are performed by an independent outside firm of consulting engineers and approved by the Surface Transportation Board ("STB"), the regulatory board that has broad jurisdiction over railroad practices.  NS' depreciation studies are conducted every three years for equipment and every six years for track assets and other roadway property.  The frequency of these studies correlates with guidelines established by the STB.  Key factors which are considered in developing average service life and salvage estimates include:

  • Statistical analysis of historical retirement data and surviving asset records;
  • Review of historical salvage received and current market rates;
  • Review of NS' operations including expected changes in technology, customer demand, maintenance practices and asset management strategies;
  • Review of accounting policies and assumptions; and
  • Industry review and analysis.

The units of production depreciation rate for rail in high density corridors is derived based on consideration of annual gross ton miles as compared to the total or ultimate capacity of rail in these corridors.  NS' experience has shown that traffic density is a leading factor in determination of the expected service life of rail in high density corridors.  In developing the respective depreciation rate, consideration is also given to several rail characteristics including age, weight, condition (new or second hand) and type (curve or tangent).  As a result, a composite depreciation rate is developed which is applied to the depreciable base.

NS' recent experience with these studies has been that while they do result in changes in the rates used to depreciate its properties, these changes have not caused a significant effect to its annual depreciation expense.  Changes in rates as a result of depreciation studies are implemented prospectively.  The studies may also indicate that the recorded amount of accumulated depreciation is deficient (or in excess) of the amount indicated by the study.  Any such deficiency (or excess) is amortized as a component of depreciation expense over the remaining service lives of the affected class of property, as determined by the study.  For 2010, roadway depreciation rates ranged from 0.83% to 33.3% and equipment depreciation rates ranged from 1.32% to 37.84%.

NS capitalizes interest on major capital projects during the period of their construction.  Expenditures, including those on leased assets, that extend an assets' useful life or increase its utility, are capitalized.  Expenditures capitalized include those that are directly related to a capital project and may include materials, labor and equipment, in addition to an allocable portion of indirect costs that clearly relate to a particular project.  Due to the capital intensive nature of the railroad industry, a significant portion of annual capital spending relates to the replacement of self constructed assets.  Because removal activities occur in conjunction with replacement, removal costs are estimated based on an average percentage of time employees replacing assets spend on removal functions.  Costs related to repairs and maintenance activities that do not extend an asset's useful life or increase its utility are expensed when such repairs are performed.

When properties other than land and nonrail assets are sold or retired in the ordinary course of business, the cost of the assets, net of sale proceeds or salvage, is charged to accumulated depreciation, and no gain or loss is recognized in earnings.  Actual historical cost values are retired when available, such as with equipment assets.  The use of estimates in recording the retirement of certain roadway assets is necessary based on the impracticality of tracking individual asset costs.  When retiring rail, ties and ballast, NS uses statistical curves that indicate the relative distribution of the age of the assets retired.  The historical cost of other roadway assets is estimated using a combination of inflation indices specific to the rail industry and those published by the U.S. Bureau of Labor Statistics.  The indices are applied to the replacement value based on the age of the retired assets.  These indices are used because they closely correlate with the costs of roadway assets.  Gains and losses on disposal of land and nonrail assets are included in "Other income – net" (see Note 2) since such income is not a product of NS' railroad operations.

A retirement is considered abnormal if it does not occur in the normal course of business, if it relates to disposition of a large segment of an asset class and if the retirement varies significantly from the retirement profile identified through our depreciation studies, which inherently consider the impact of normal retirements on expected service lives and depreciation rates.  Gains or losses from abnormal retirements are recognized in earnings.

NS reviews the carrying amount of properties whenever events or changes in circumstances indicate that such carrying amount may not be recoverable based on future undiscounted cash flows.  Assets that are deemed impaired as a result of such review are recorded at the lower of carrying amount or fair value.

*
(150) NORTHERN TRUST CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:6022 (STATE COMMERCIAL BANKS)
Network: http://www.ntrs.com/taxonomy/role/NotesToFinancialStatementsBasisOfPresentationAndSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable

J. Buildings and Equipment. Buildings and equipment owned are carried at original cost less accumulated depreciation. The charge for depreciation is computed on the straight-line method based on the following range of lives: buildings – 10 to 30 years; equipment – 3 to 10 years; and leasehold improvements – the shorter of the lease term or 15 years. Leased properties meeting certain criteria are capitalized and amortized using the straight-line method over the lease period.

*
(151) NORTHROP GRUMMAN CORP /DE/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/9/2011; SIC code:3812 (SEARCH, DETECTION, NAVAGATION, GUIDANCE, AERONAUTICAL SYS)
Network: http://northropgrumman.com/role/SignificantAccountingPolicies
[Table]:
 
Depreciable Properties – Property, plant, and equipment owned by the company are depreciated over the estimated useful lives of individual assets. Most of these assets are depreciated using declining-balance methods, with the remainder using the straight-line method, with the following lives:
 
         
    Years  
Land improvements
    2-45  
Buildings and improvements
    2-45  
Machinery and other equipment
    2-25  
Capitalized software costs
    3-5  
Leasehold improvements
    Length of lease  
         
 
*
(152) NRG ENERGY, INC. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/22/2011; SIC code:4911 (ELECTRIC SERVICES)
Network: http://www.nrgenergy.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:
  •         Property, plant and equipment are stated at cost; however impairment adjustments are recorded whenever events or changes in circumstances indicate that their carrying values may not be recoverable. NRG also classifies nuclear fuel related to the Company's 44% ownership interest in STP as part of the Company's property, plant, and equipment. Significant additions or improvements extending asset lives are capitalized as incurred, while repairs and maintenance that do not improve or extend the life of the respective asset are charged to expense as incurred. Depreciation other than nuclear fuel is computed using the straight-line method, while nuclear fuel is amortized based on units of production over the estimated useful lives. Certain assets and their related accumulated depreciation amounts are adjusted for asset retirements and disposals with the resulting gain or loss included in cost of operations in the consolidated statements of operations.
*
(153) NUCOR CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:3312 (STEEL WORKS, BLAST FURNACES & ROLLING MILLS (COKE OVENS))
Network: http://www.nucor.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(154) NYSE Euronext (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6200 (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES)
Network: http://nyse.com/role/SignificantAccountingPoliciesPolicies
[Table]:
Property and Equipment
 
Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation of assets is provided using the straight-line method of depreciation over the estimated useful lives of the assets, which generally range from 3 to 20 years. Interest associated with long-term construction projects is capitalized and amortized over the same method and useful life as the underlying asset. Leasehold improvements are amortized using the straight-line method over the term of the lease or the estimated useful lives of the assets, whichever is shorter.
 
NYSE Euronext accounts for software development costs pursuant to Subtopic 10 of the Intangibles-Goodwill and Other in the Codification. NYSE Euronext expenses software development costs incurred during the preliminary project stage, while it capitalizes costs incurred during the application development stage, which includes design, coding, installation and testing activities. Costs that are related to the development of licenses marketed to external customers are capitalized after technological feasibility has been established. Amortization of capitalized software development costs is computed on a straight-line basis over the software’s estimated useful life, which is applied over periods ranging from 3 to 5 years.
 
Expenditures for repairs and maintenance are charged to operations in the period incurred.
*
(155) O REILLY AUTOMOTIVE INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:5531 (RETAIL-AUTO & HOME SUPPLY STORES)
Network: http://www.oreillyauto.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property and equipment are carried at cost.  Depreciation is calculated using the straight-line method generally over the estimated useful lives of the assets.  Leasehold improvements are amortized over the lesser of the lease term or the estimated economic life of the assets.  The lease term includes renewal options determined by management at lease inception for which failure to renew options would result in a substantial economic penalty to the Company.  Maintenance and repairs are charged to expense as incurred.  Upon retirement or sale, the cost and accumulated depreciation are eliminated and the gain or loss, if any, is included as a component of "Other income (expense)" in the Company's Consolidated Statements of Income.  The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable.

*
(156) OCCIDENTAL PETROLEUM CORP /DE/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:1311 (CRUDE PETROLEUM & NATURAL GAS)
Network: http://www.oxy.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

PROPERTY, PLANT AND EQUIPMENT

Oil and Gas

The carrying value of Occidental’s property, plant and equipment (PP&E) represents the cost incurred to acquire the PP&E, including any capitalized interest, net of accumulated depreciation, depletion and amortization (DD&A) and net of any impairment charges.  For business acquisitions, PP&E cost is based on fair values at the acquisition date.  Interest costs incurred in connection with qualifying capital expenditures are capitalized and amortized over the lives of the related assets.

 

Occidental uses the successful efforts method to account for its oil and gas properties.  Under this method, costs of acquiring properties, costs of drilling successful exploration wells and development costs are capitalized.  The costs of exploratory wells are initially capitalized pending a determination of whether proved reserves have been found.  If proved reserves have been found, the costs of exploratory wells remain capitalized.  Otherwise, the costs of the related exploratory wells are charged to expense.  In some cases, a determination of proved reserves cannot be made at the completion of drilling, requiring additional testing and evaluation of the wells.  Occidental’s practice is to expense the costs of such exploratory wells if a determination of proved reserves has not been made within a 12-month period after drilling is complete.  Annual lease rentals and geological, geophysical and seismic costs are expensed as incurred.

 

Proved oil and gas reserves (as defined in the Securities and Exchange Commission’s Regulation S-X, Rule 4-10(a)) are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation.  Occidental has no proved oil and gas reserves for which the determination of commercial viability is subject to the completion of major additional capital expenditures.  Depreciation and depletion of oil and gas producing properties is determined by the unit-of-production method.  Leasehold acquisition costs are amortized over total proved reserves, while capitalized development and successful exploration costs are amortized over proved developed reserves.

 

A portion of the carrying value of Occidental’s oil and gas properties is attributable to unproved properties.  At December 31, 2010, the net capitalized costs attributable to unproved properties were $3.7 billion.  The unproved amounts are not subject to DD&A or impairment until a determination is made as to the existence of proved reserves.  As exploration and development work progresses, if reserves on these properties are proved, capitalized costs attributable to the properties will be subject to depreciation and depletion.  If the exploration and development work were to be unsuccessful, or management’s plans changed with respect to these properties, as a result of economic, operating or contractual conditions, the capitalized costs of the related properties would be expensed in the period in which the determination was made.  The timing of any writedowns of these unproved properties, if warranted, depends upon management’s plans, the nature, timing and extent of future exploration and development activities and their results.  Occidental believes its current plans and exploration and development efforts will allow it to realize its unproved property balance.

 

Additionally, Occidental performs impairment tests with respect to its proved properties generally when prices decline other than temporarily, reserve estimates change significantly or other significant events occur that may impact its ability to realize the recorded asset amounts.  Impairment tests incorporate a number of assumptions involving expectations of future cash flows, which can change significantly over time.  These assumptions include estimates of future product prices, which Occidental bases on forward price curves and, where applicable, contractual prices, estimates of oil and gas reserves and estimates of future expected operating and development costs.  Fluctuations in commodities prices and production and development costs could cause management’s plans to change with respect to unproved properties and could cause the carrying values of proved properties to be unrealizable.  Such circumstances could result in impairments in the carrying values of proved or unproved properties or both.  Any impairment loss would be calculated as the excess of the asset’s net book value over its estimated fair value.

 

Chemical

Occidental’s chemical plants are depreciated using either the unit-of-production or straight-line method, based upon the estimated useful lives of the facilities.  The estimated useful lives of Occidental’s chemical assets, which range from three years to 50 years, are also used for impairment tests.  The estimated useful lives used for the chemical facilities are based on the assumption that Occidental will provide an appropriate level of annual expenditures to ensure productive capacity is sustained.  Without these continued expenditures, the useful lives of these plants could decrease significantly.  Other factors that could change the estimated useful lives of Occidental’s chemical plants include sustained higher or lower product prices, which are particularly affected by both domestic and foreign competition, demand, feedstock costs, energy prices, environmental regulations and technological changes.

 

Occidental performs impairment tests on its chemical assets whenever events or changes in circumstances lead to a reduction in the estimated useful lives or estimated future cash flows that would indicate that the carrying amount may not be recoverable, or when management’s plans change with respect to those assets.  Any impairment loss would be calculated as the excess of the asset’s net book value over its estimated fair value.

 

Midstream and Marketing

Occidental’s midstream and marketing PP&E is depreciated over the estimated useful lives of the assets, using either the unit-of-production or straight-line method.

 

Occidental performs impairment tests on its midstream and marketing assets whenever events or changes in circumstances lead to a reduction in the estimated useful lives or estimated future cash flows that would indicate that the carrying amount may not be recoverable, or when management’s plans change with respect to those assets.  Any impairment loss would be calculated as the excess of the asset’s net book value over its estimated fair value.

*
(157) OMNICOM GROUP INC. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:7311 (SERVICES-ADVERTISING AGENCIES)
Network: http://www.omnicomgroup.com/role/DisclosureSignificantAccountingPoliciesPolicies
[Table]:
*
(158) OWENS ILLINOIS INC /DE/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/10/2011; SIC code:3221 (GLASS CONTAINERS)
Network: http://www.o-i.com/role/DisclosureSignificantAccountingPoliciesPolicies
[Table]:
Property, Plant, and Equipment    Property, plant, and equipment ("PP&E") is carried at cost and includes expenditures for new facilities and equipment and those costs which substantially increase the useful lives or capacity of existing PP&E. In general, depreciation is computed using the straight-line method and recorded over the estimated useful life of the asset. Factory machinery and equipment is depreciated over periods ranging from 5 to 25 years with the majority of such assets (principally glass-melting furnaces and forming machines) depreciated over 7-15 years. Buildings and building equipment are depreciated over periods ranging from 10 to 50 years. Depreciation expense directly attributed to the manufacturing of the Company's products is included in manufacturing, shipping, and delivery. Depreciation expense related to non-manufacturing activities is included in selling and administrative. Depreciation expense includes the amortization of assets recorded under capital leases. Maintenance and repairs are expensed as incurred. Costs assigned to PP&E of acquired businesses are based on estimated fair values at the date of acquisition. The Company evaluates the recoverability of property, plant, and equipment based on undiscounted projected cash flows, excluding interest and taxes, when factors indicate that impairment may exist. If impairment exists, the asset is written down to fair value.
*
(159) PEABODY ENERGY CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:1221 (BITUMINOUS COAL & LIGNITE SURFACE MINING)
Network: http://peabodyenergy.com/role/SummaryOfSignificantAccountingPoliciesDiscussionPolicies
[Table]:
Property, plant, equipment and mine development are recorded at cost. Interest costs applicable to major asset additions are capitalized during the construction period. Capitalized interest in 2010, 2009 and 2008 was immaterial.
 
Expenditures which extend the useful lives of existing plant and equipment assets are capitalized. Maintenance and repairs are charged to operating costs as incurred. Costs incurred to develop coal mines or to expand the capacity of operating mines are capitalized. Costs incurred to maintain current production capacity at a mine are charged to operating costs as incurred. Costs to acquire computer hardware and the development and/or purchase of software for internal use are capitalized and depreciated over the estimated useful lives.
 
Coal reserves are recorded at cost, or at fair value in the case of nonmonetary exchanges of reserves or businesses. The net book value of coal reserves totaled $5.0 billion as of December 31, 2010 and $5.3 billion as of December 31, 2009. These coal reserves include mineral rights for leased coal interests and advance royalties that had a net book value of $3.7 billion as of December 31, 2010 and $4.0 billion as of December 31, 2009. The remaining net book value of coal reserves of $1.3 billion at December 31, 2010 and $1.3 billion at December 31, 2009 relates to coal reserves held by fee ownership. Amounts attributable to properties where the Company was not currently engaged in mining operations or leasing to third parties and, therefore, the coal reserves were not currently being depleted was $1.3 billion as of December 31, 2010 and $1.4 billion as of December 31, 2009.
 
Depletion of coal reserves and amortization of advance royalties is computed using the units-of-production method utilizing only proven and probable reserves (as adjusted for recoverability factors) in the depletion base. Mine development costs are principally amortized over the estimated lives of the mines using the straight-line method. Depreciation of plant and equipment (excluding life of mine assets) is computed using the straight-line method over the estimated useful lives. The estimated useful lives by category of assets are as follows:
 
         
    Years  
 
Building and improvements
    10 to 20  
Machinery and equipment
    3 to 33  
Leasehold improvements
    Life of Lease  
 
Included in machinery and equipment are certain assets that are depreciated using the straight-line method over the estimated life of the mine, which varies from one to 33 years.
*
(160) PETROHAWK ENERGY CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/22/2011; SIC code:1311 (CRUDE PETROLEUM & NATURAL GAS)
Network: http://www.petrohawk.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Gas Gathering Systems and Equipment and Other Operating Assets

        Gas gathering systems and equipment are recorded at cost. Depreciation is calculated using the straight-line method over a 30-year estimated useful life. Upon disposition, the cost and accumulated depreciation are removed and any gains or losses are reflected in current operations. Maintenance and repair costs are charged to operating expense as incurred. Material expenditures, which increase the life of an asset, are capitalized and depreciated over the estimated remaining useful life of the asset. The Company capitalized $3.5 million and $5.9 million of interest for the years ended December 31, 2010 and 2009, respectively, related to the construction of the Company's gas gathering systems.

        Gas gathering systems and equipment as of December 31, 2010 and 2009 consisted of the following:

 
  December 31,  
 
  2010(1)(2)   2009  
 
  (In thousands)
 

Gas gathering systems and equipment

  $ 305,096   $ 497,551  

Less—accumulated depreciation

    (13,729 )   (14,618 )
           
 

Net gas gathering systems and equipment

  $ 291,367   $ 482,933  
           


(1)
On May 21, 2010, the Company contributed its Haynesville Shale gas gathering and treating business for a 50% membership interest in a joint venture entity, KinderHawk Field Services LLC (KinderHawk), and approximately $917 million in cash. See Note 2, "Acquisitions and Divestitures" for more details.

(2)
Includes gas gathering systems and equipment of approximately $155 million and related accumulated depreciation of approximately $11 million associated with the Fayetteville Shale midstream assets, which were classified as "Assets held for sale" in the consolidated balance sheet at December 31, 2010. "Assets held for sale" were recorded at the lesser of the carrying amount or the fair value less costs to sell, which resulted in a write down of approximately $69.7 million that was recorded in the year ended December 31, 2010. "Assets held for sale" were approximately $74 million as of December 31, 2010. See "Assets Held for Sale" below for further discussion.

        Other operating property and equipment are recorded at cost. Depreciation is calculated using the straight-line method over the following estimated useful lives: automobiles, leasehold improvements, furniture and equipment, five years or lesser of lease term; rental equipment, seven years; and computers, three years. Upon disposition, the cost and accumulated depreciation are removed and any gains or losses are reflected in current operations. Maintenance and repair costs are charged to operating expense as incurred. Material expenditures, which increase the life of an asset, are capitalized and depreciated over the estimated remaining useful life of the asset.

        The Company reviews its gas gathering systems and equipment and other operating assets in accordance with ASC 360, Property, Plant, and Equipment (ASC 360). ASC 360 requires the Company to evaluate gas gathering systems and equipment and other operating assets as events occur or circumstances change that would more likely than not reduce the fair value below the carrying amount. If the carrying amount is not recoverable from its undiscounted cash flows, then the Company would recognize an impairment loss for the difference between the carrying amount and the current fair value. Further, the Company evaluates the remaining useful lives of its gas gathering systems and equipment and other operating assets at each reporting period to determine whether events and circumstances warrant a revision to the remaining depreciation periods.

*
(161) PG&E CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/17/2011; SIC code:4931 (ELECTRIC & OTHER SERVICES COMBINED)
Network: http://pgecorp.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
*
(162) Pitney Bowes Inc /DE/. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:3579 (OFFICE MACHINES, NEC)
Network: http://www.pb.com/role/DisclosureBasisOfPresentationAndSummaryOfSignificantAccountingPolicies
[Table]:

Fixed Assets and Depreciation

Property, plant and equipment and rental equipment are stated at cost and depreciated principally using the straight-line method over their estimated useful lives. The estimated useful lives of depreciable fixed assets are as follows: buildings, up to 50 years; plant and equipment, three to 15 years; and computer equipment, three to five years. Major improvements which add to productive capacity or extend the life of an asset are capitalized while repairs and maintenance are charged to expense as incurred. Leasehold improvements are amortized over the shorter of the estimated useful life or their related lease term.

 

Fully depreciated assets are retained in fixed assets and accumulated depreciation until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in earnings.

*
(163) PLAINS ALL AMERICAN PIPELINE LP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:4610 (PIPE LINES (NO NATURAL GAS))
Network: http://www.paalp.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

In accordance with our capitalization policy, costs associated with acquisitions and improvements that expand our existing capacity, including related interest costs, are capitalized. For the years ended December 31, 2010, 2009 and 2008, capitalized interest was $16 million, $15 million and $17 million, respectively. We also capitalize expenditures for the replacement of partially or fully depreciated assets in order to maintain the service capability, level of production and/or functionality of our existing assets. Repair and maintenance expenditures incurred in order to maintain the day to day operation of our existing assets are expensed as incurred.

 

We calculate our depreciation using the straight-line method, based on estimated useful lives and salvage values of our assets. During 2010, we extended the depreciable lives of several of our crude oil and other storage facilities and pipeline systems based on an ongoing review to assess the useful lives of our property and equipment and to adjust those lives, if appropriate, to reflect current expectations given actual experience and current technology. These depreciable life extensions will prospectively reduce depreciation expense. For the year ended December 31, 2010, these extensions reduced depreciation expense by approximately $23 million. Any historical adjustments to useful lives have not had a material impact on our aggregate depreciation levels from year to year. We also classify gains and losses on sales of assets and asset impairments as a component of depreciation and amortization in the consolidated statements of operations.

*
(164) PLUM CREEK TIMBER CO INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:6798 (REAL ESTATE INVESTMENT TRUSTS)
Network: http://www.plumcreek.com/taxonomy/role/DisclosureAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
Network: http://www.plumcreek.com/taxonomy/role/DisclosureAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(165) PPG INDUSTRIES INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/17/2011; SIC code:2851 (PAINTS, VARNISHES, LACQUERS, ENAMELS & ALLIED PRODS)
Network: http://www.ppg.com/taxonomy/role/NotesToFinancialStatementsSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable

Property

Property is recorded at cost. PPG computes depreciation by the straight-line method based on the estimated useful lives of depreciable assets. Additional expense is recorded when facilities or equipment are subject to abnormal economic conditions or obsolescence. Significant improvements that add to productive capacity or extend the lives of properties are capitalized. Costs for repairs and maintenance are charged to expense as incurred. When property is retired or otherwise disposed of, the original cost and related accumulated depreciation balance are removed from the accounts and any related gain or loss is included in income. Amortization of the cost of capitalized leased assets is included in depreciation expense. Property and other long-lived assets are reviewed for impairment whenever events or circumstances indicate that their carrying amounts may not be recoverable.

*
(166) PPL CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:4911 (ELECTRIC SERVICES)
Network: http://pplweb.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property, Plant and Equipment

(PPL, PPL Energy Supply and PPL Electric)

PP&E is recorded at original cost, unless impaired.  The original cost for PP&E acquired in the LKE acquisition is its fair value on November 1, 2010, which approximated net book value as of the acquisition date.  See Note 10 for additional information on the acquisition of LKE.  If impaired, the asset is written down to fair value at that time, which becomes the new cost basis of the asset.  Original cost includes material, labor, contractor costs, certain overheads and financing costs, where applicable.  The cost of repairs and minor replacements are charged to expense as incurred.  PPL records costs associated with planned major maintenance projects in the period in which the costs are incurred.  No costs are accrued in advance of the period in which the work is performed for PPL Energy Supply or PPL Electric.  PPL, through its subsidiaries LG&E and KU, accrues costs of removal net of estimated salvage value through depreciation which is included in the calculation of customer rates over the assets' depreciable lives in accordance with regulatory practices.  Cost of removal amounts accrued through depreciation rates are accumulated as a regulatory liability until the removal costs are incurred.  See Note 3 for additional information.

(PPL and PPL Electric)

AFUDC is capitalized as part of the construction costs for cost based rate regulated projects for which a return on such costs is recovered after the project is placed in service.  The debt component of AFUDC is credited to "Interest Expense" and the equity component is credited to "Other Income (Expense) - net" on the Statements of Income.

(PPL and PPL Energy Supply)

Nuclear fuel-related costs, including fuel, conversion, enrichment, fabrication and assemblies, are capitalized as PP&E.  Such costs are amortized over the period the fuel is spent using the unit-of-production method and included in "Fuel" on the Statements of Income.

PPL and PPL Energy Supply capitalize interest costs as part of construction costs for projects not subjected to cost-based rate regulation.

(PPL, PPL Energy Supply and PPL Electric)

Included in PP&E on the balance sheet are capitalized costs of software projects that were developed or obtained for internal use.  These capitalized costs are amortized ratably over the expected lives of the projects when they become operational, generally not to exceed five years.  
 
The amortization of capitalized software is included in "Depreciation" on the Statements of Income.
*
(167) PRAXAIR INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:2810 (INDUSTRIAL INORGANIC CHEMICALS)
Network: http://www.praxair.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property, Plant and Equipment – Net Property, plant and equipment are carried at cost, net of accumulated depreciation. The company capitalizes interest as part of the cost of constructing major facilities (see Note 7). Depreciation is calculated on the straight-line method based on the estimated useful lives of the assets, which range from 3 years to 40 years (see Note 8). Praxair uses accelerated depreciation methods for tax purposes where appropriate. Maintenance of property, plant and equipment is generally expensed as incurred.

 

The company performs a test for impairment whenever events or changes in circumstances indicate that the carrying amount of an individual asset or asset group may not be recoverable. Should projected undiscounted future cash flows be less than the carrying amount of the asset or asset group, an impairment charge reducing the carrying amount to fair value is required. Fair value is determined based on the most appropriate valuation technique, including discounted cash flows.

 

*
(168) PRICE T ROWE GROUP INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/8/2011; SIC code:6200 (SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES)
Network: http://www.troweprice.com/role/DisclosureSummaryOfSignificantAccountingPoliciesByPolicy
[Table]:

PROPERTY AND EQUIPMENT.

Property and equipment is stated at cost net of accumulated depreciation and amortization computed using the straight-line method.  Provisions for depreciation and amortization are based on the following weighted average estimated useful lives:  computer and communications software and equipment, 3.5 years; buildings and improvements, 32.4 years; leasehold improvements, 9.1 years; furniture and other equipment, 6.6 years; and leased land, 99 years.

*
(169) PRICELINE COM INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:7389 (SERVICES-BUSINESS SERVICES, NEC)
Network: http://www.priceline.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

Property and Equipment — Property and equipment are stated at cost less accumulated depreciation and amortization.  Depreciation and amortization of property and equipment is computed on a straight-line basis over the estimated useful lives of the assets or, when applicable, the life of the lease, whichever is shorter.

 

*
(170) PRIDE INTERNATIONAL INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/18/2011; SIC code:1381 (DRILLING OIL & GAS WELLS)
Network: http://prideinternational.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property and Equipment
Property and equipment are carried at original cost or adjusted net realizable value, as applicable. Major renewals and improvements are capitalized and depreciated over the respective asset’s remaining useful life. Maintenance and repair costs are charged to expense as incurred. When assets are sold or retired, the remaining costs and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in results of operations.
We depreciate property and equipment using the straight-line method based upon expected useful lives of each class of assets. The expected original useful lives of the assets for financial reporting purposes range from five to 35 years for rigs and rig equipment and three to 20 years for other property and equipment. We evaluate our estimates of remaining useful lives and salvage value for our rigs when changes in market or economic conditions occur that may impact our estimates of the carrying value of these assets and when certain events occur that directly impact our assessment of the remaining useful lives of the rigs and include changes in operating condition, functional capability, market and economic factors. In conducting this evaluation, the scope of work, age of the rig, general condition of the rig and design of the rig are factors that are considered in the evaluation. We also consider major capital upgrades required or rig refurbishment to perform certain contracts and the long-term impact of those upgrades on the future marketability when assessing the useful lives of individual rigs. During 2010 and 2008, we extended the useful lives of certain rigs based on the results of our review of the useful lives of the rigs upon completion of shipyard projects. In 2010, this change resulted in a reduction in depreciation expense in 2010 of $4.3 million for continuing operations and increased after-tax diluted earnings per share from continuing operations by $0.02. In 2008, this change to the useful lives reduced depreciation expense by $2.4 million and $0.5 million for continuing and discontinued operations, respectively, and increased after-tax diluted earnings per share from continuing operations by $0.01. During 2009, based on the results of our review of the useful lives of rigs that completed shipyard projects, we had no adjustments to the useful lives of the rigs.
Interest is capitalized on construction-in-progress at the weighted average cost of debt outstanding during the period of construction or at the interest rate on debt incurred for construction.
We review our property and equipment for impairment when events or changes in circumstances indicate the carrying value of such assets or asset groups may not be recoverable, such as a significant decrease in market value of the assets or a significant change in the business conditions in a particular market. Asset impairment evaluations are, by nature, highly subjective. They involve expectations about future cash flows generated by our assets, and reflect management’s assumptions and judgments regarding future industry conditions and their effect on future utilization levels, dayrates and costs. The use of different estimates and assumptions could result in materially different carrying values of our assets and could materially affect our results of operations.
During the first and second quarters of 2010, management determined that the current and forecasted operating losses of our independent leg jackup fleet represented a triggering event for the asset group. Management performed an undiscounted cash flow analysis for the group’s long-lived assets to determine if there was any impairment of the asset group and, as a result of this analysis, determined that no impairment was required.
Future changes that might occur in our Independent Leg Jackup asset group, such as the stacking of additional rigs, decreases in dayrates and declining utilization, might result in changes to our estimates and assumptions used in our undiscounted cash flow analysis. This could affect whether or not projected undiscounted cash flows continue to exceed the carrying value of the Independent Leg Jackup asset group and could result in a required impairment charge in a future period.
In connection with the spin-off of Seahawk Drilling, Inc. (“Seahawk”) in August 2009, we conducted a fair value assessment of its long-lived assets. As a result of this assessment, we determined that the carrying value of these assets exceeded the fair value, resulting in an impairment loss of $33.4 million. We recorded the loss in income from discontinued operations for 2009. In 2008, we recognized no impairment charges.
*
(171) PUBLIC SERVICE ENTERPRISE GROUP INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:4931 (ELECTRIC & OTHER SERVICES COMBINED)
Network: http://www.pseg.com/taxonomy/role/DisclosureOrganizationBasisOfPresentationAndSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable

 

Property, Plant and Equipment

Power capitalizes costs which increase the capacity or extend the life of an existing asset, represent a newly acquired or constructed asset or represent the replacement of a retired asset. The cost of maintenance, repair and replacement of minor items of property is charged to appropriate expense accounts as incurred. Environmental costs are capitalized if the costs mitigate or prevent future environmental contamination or if the costs improve existing assets' environmental safety or efficiency. All other environmental expenditures are expensed as incurred.

PSE&G's additions to and replacements of existing property, plant and equipment are capitalized at original cost. The cost of maintenance, repair and replacement of minor items of property is charged to expense as incurred. At the time units of depreciable property are retired or otherwise disposed of, the original cost, adjusted for net salvage value, is charged to accumulated depreciation.

*
(172) PUBLIX SUPER MARKETS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:5411 (RETAIL-GROCERY STORES)
Network: http://www.publix.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:
(h) Property, Plant and Equipment and Depreciation

Assets are recorded at cost and are depreciated using the straight-line method over their estimated useful lives or the terms of the related leases, if shorter, as follows:

 

Buildings and improvements

     10 – 40 years   

Furniture, fixtures and equipment

     3 – 20 years   

Leasehold improvements

     5 – 40 years   

Maintenance and repairs are charged to operating expenses as incurred. Expenditures for renewals and betterments are capitalized. The gain or loss realized on disposed assets or assets to be disposed of is recorded as operating and administrative expenses in the consolidated statements of earnings.

*
(173) QUEST DIAGNOSTICS INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/16/2011; SIC code:8071 (SERVICES-MEDICAL LABORATORIES)
Network: http://questdiagnostics.com/role/DisclosureSummaryOfSignficantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable

Property, Plant and Equipment  

Property, plant and equipment is recorded at cost. Major renewals and improvements are capitalized, while maintenance and repairs are expensed as incurred.  Costs incurred for computer software developed or obtained for internal use are capitalized for application development activities and expensed as incurred for preliminary project activities and post-implementation activities. Capitalized costs include external direct costs of materials and services consumed in developing or obtaining internal-use software, payroll and payroll-related costs for employees who are directly associated with and who devote time to the internal-use software project, and interest costs incurred, when material, while developing internal-use software.  Capitalization of such costs ceases when the project is substantially complete and ready for its intended purpose.  Certain costs, such as maintenance and training, are expensed as incurred. The Company capitalizes interest on borrowings during the active construction period of major capital projects.  Capitalized interest is added to the cost of the underlying assets and is amortized over the expected useful lives of the assets.  Depreciation and amortization are provided on the straight-line method over expected useful asset lives as follows: buildings and improvements, ranging from ten to thirty years; laboratory equipment and furniture and fixtures, ranging from three to seven years; leasehold improvements, the lesser of the useful life of the improvement or the remaining life of the building or lease, as applicable; and computer software developed or obtained for internal use, ranging from three to seven years.

*
(174) QWEST COMMUNICATIONS INTERNATIONAL INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/15/2011; SIC code:4813 (TELEPHONE COMMUNICATIONS (NO RADIOTELEPHONE))
Network: http://www.qwest.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]: us-gaap:StatementTable
*
(175) RAYTHEON CO/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:3812 (SEARCH, DETECTION, NAVAGATION, GUIDANCE, AERONAUTICAL SYS)
Network: http://www.raytheon.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:
*
(176) REPUBLIC SERVICES, INC. (SEC Filing, XBRL), Form: 10-K; Filing date: 2/18/2011; SIC code:4953 (REFUSE SYSTEMS)
Network: http://republicservices.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
 
Property and Equipment
 
Property and equipment are recorded at cost. Expenditures for major additions and improvements to facilities are capitalized, while maintenance and repairs are charged to expense as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of income.
 
We revise the estimated useful lives of property and equipment acquired through business acquisitions to conform with our policies. Depreciation is provided over the estimated useful lives of the assets involved using the straight-line method. We assume no salvage value for our depreciable property and equipment. The estimated useful lives of our property and equipment are as follows:
 
     
    Estimated
    Useful
    Lives
 
Buildings and improvements
  7 - 40 years
Vehicles
  5 - 12 years
Landfill equipment
  7 - 10 years
Other equipment
  3 - 15 years
Furniture and fixtures
  5 - 12 years
 
Landfill development costs are also included in property and equipment. Landfill development costs include direct costs incurred to obtain landfill permits and direct costs incurred to acquire, construct and develop sites as well as final capping, closure and post-closure assets. These costs are amortized or depleted based on consumed airspace. All indirect landfill development costs are expensed as incurred. (For additional information, see Note 8, Landfill and Environmental Costs.)
*
(177) REYNOLDS AMERICAN INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:2111 (CIGARETTES)
Network: http://reynoldsamerican.com/role/BusinessAndSummaryOfSignificantAccountingPoliciesPolicies
[Table]:
 
Property, Plant and Equipment
 
Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Useful lives range from 20 to 50 years for buildings and improvements, and from 3 to 30 years for machinery and equipment. The cost and related accumulated depreciation of assets sold or retired are removed from the accounts and the gain or loss on disposition is recognized in operating income.
*
(178) Roper Industries Inc (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:3823 (INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL)
Network: http://roperind.com/role/SummaryOfAccountingPoliciesPolicies
[Table]:
Property, Plant and Equipment and Depreciation and Amortization - Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided for using principally the straight-line method over the estimated useful lives of the assets as follows:
Buildings
20-30 years
Machinery
8-12 years
Other equipment
3-5 years
*
(179) RR Donnelley & Sons Co (SEC Filing, XBRL), Form: 10-K; Filing date: 2/22/2011; SIC code:2750 (COMMERCIAL PRINTING)
Network: http://www.rrdonnelley.com/taxonomy/role/DisclosureBasisOfPresentationAndSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property, plant and equipment—Property, plant and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives. Useful lives range from 15 to 40 years for buildings, the lesser of 7 years or the lease term for leasehold improvements and from 3 to 15 years for machinery and equipment. Maintenance and repair costs are charged to expense as incurred. Major overhauls that extend the useful lives of existing assets are capitalized. When properties are retired or disposed, the costs and accumulated depreciation are eliminated and the resulting profit or loss is recognized in the results of operations.

*
(180) SAFEWAY INC (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:5411 (RETAIL-GROCERY STORES)
Network: http://www.safeway.com/taxonomy/role/DisclosureCompanyAndSignificantAccountingPoliciesPolicy
[Table]:

Property and Depreciation    Property is stated at cost. Depreciation expense on buildings and equipment is computed on the straight-line method using the following lives:

 

Stores and other buildings

     7 to 40 years   

Fixtures and equipment

     3to 15 years   

Property under capital leases and leasehold improvements are amortized on a straight-line basis over the shorter of the remaining terms of the leases or the estimated useful lives of the assets.

*
(181) SANDISK CORPORATION (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:3572 (COMPUTER STORAGE DEVICES)
Network: http://sandisk.com/role/OrganizationAndSummaryOfSignificantAccountingPoliciesPolicies
[Table]:
     Property and Equipment. Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, ranging from two to twenty-five years, or the remaining lease term, whichever is shorter.
*
(182) SCHLUMBERGER LTD /NV/ (SEC Filing, XBRL), Form: 10-K; Filing date: 2/4/2011; SIC code:1389 (OIL & GAS FIELD SERVICES, NEC)
Network: http://slb.com/role/SummaryOfAccountingPoliciesPolicies
[Table]:
 
Fixed Assets and Depreciation
 
Fixed assets are stated at cost less accumulated depreciation, which is provided for by charges to income over the estimated useful lives of the assets using the straight-line method. Fixed assets include the manufacturing cost of oilfield technical equipment manufactured or assembled by subsidiaries of Schlumberger. Expenditures for replacements and improvements are capitalized. Maintenance and repairs are charged to operating expenses as incurred. Upon sale or other disposition, the applicable amounts of asset cost and accumulated depreciation are removed from the balance sheet and the net amount, less proceeds from disposal, is charged or credited to income.
*
(183) SCHWAB CHARLES CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:6211 (SECURITY BROKERS, DEALERS & FLOTATION COMPANIES)
Network: http://www.charlesschwab.com/taxonomy/role/NotesToFinancialStatementsSignificantAccountingPoliciesTextBlockPolicies
[Table]: us-gaap:StatementTable
Equipment, office facilities, and property: Equipment, office facilities, and property are recorded at cost net of accumulated depreciation and amortization, except for land, which is recorded at cost. Equipment and office facilities are depreciated on a straight-line basis over an estimated useful life of three to ten years. Buildings are depreciated on a straight-line basis over 20 to 40 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the term of the lease. Software and certain costs incurred for purchasing or developing software for internal use are amortized on a straight-line basis over an estimated useful life of three or five years. Equipment, office facilities, and property are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.
*
(184) Sempra Energy (SEC Filing, XBRL), Form: 10-K; Filing date: 2/24/2011; SIC code:4924 (NATURAL GAS DISTRIBUTION)
Network: http://www.sempra.com/role/DisclosureSIGNIFICANTACCOUNTINGPOLICIESANDOTHERFINANCIALDATAPolicies
[Table]:

Property, Plant and Equipment

Property, plant and equipment primarily represents the buildings, equipment and other facilities used by the Sempra Utilities to provide natural gas and electric utility services, and by Sempra Generation, Sempra Pipelines & Storage and Sempra LNG. It also reflects projects included in construction work in progress at these business units.

Our plant costs include

  • labor
  • materials and contract services

  • expenditures for replacement parts incurred during a major maintenance outage of a generating plant

In addition, the cost of our utility plant includes an allowance for funds used during construction (AFUDC). We discuss AFUDC below. The cost of non-utility plant includes capitalized interest.

Maintenance costs are expensed as incurred. The cost of most retired depreciable utility plant minus salvage value is charged to accumulated depreciation.

Depreciation expense is based on the straight-line method over the useful lives of the assets or, for the Sempra Utilities, a shorter period prescribed by the CPUC. Depreciation expense is computed using the straight-line method over the asset's estimated original composite useful life or the remaining term of the site leases, whichever is shorter.

 

The Sempra Utilities finance their construction projects with borrowed funds and equity funds. The CPUC and the FERC allow the recovery of the cost of these funds by the capitalization of AFUDC, calculated using rates authorized by the CPUC and the FERC, as a cost component of property, plant and equipment. The Sempra Utilities earn a return on the allowance after the utility property is placed in service and recover the AFUDC from their customers over the expected useful lives of the assets.

Sempra Global businesses capitalize interest costs incurred to finance capital projects. The Sempra Utilities also capitalize certain interest costs.

*
(185) SHERWIN WILLIAMS CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:5200 (RETAIL-BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY)
Network: http://sherwin-williams.com/role/SignificantAccountingPoliciesPolicies
[Table]:
     Property, plant and equipment. Property, plant and equipment is stated on the basis of cost. Depreciation is provided by the straight-line method. Depreciation and amortization are included in the appropriate Cost of goods sold or Selling, general and administrative expense caption on the Statements of Consolidated Income. Included in Property, plant and equipment are leasehold improvements. The major classes of assets and ranges of annual depreciation rates are:
         
Buildings
    2.5% – 20.0 %
Machinery and equipment
    5.0% – 20.0 %
Furniture and fixtures
    10.0% – 33.3 %
Automobiles and trucks
    10.0% – 33.3 %
*
(186) Shire plc (SEC Filing, XBRL), Form: 10-K; Filing date: 2/23/2011; SIC code:2834 (PHARMACEUTICAL PREPARATIONS)
Network: http://www.shire.com/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicies
[Table]:

(u)       Property, plant and equipment

 

Property, plant and equipment is shown at cost reduced for impairment losses, less accumulated depreciation. The cost of significant assets includes capitalized interest incurred during the construction period. Depreciation is provided on a straight-line basis at rates calculated to write off the cost less estimated residual value of each asset over its estimated useful life as follows:

 

Buildings                                                 15 to 50 years

Office furniture, fittings and equipment                            3 to 10 years

Warehouse, laboratory and manufacturing equipment              3 to 15 years

 

The cost of land is not depreciated. Assets under the course of construction are not depreciated until the relevant assets are available and ready for their intended use.

 

Expenditures for maintenance and repairs are charged to the consolidated statements of income as incurred. The costs of major renewals and improvements are capitalized. At the time property, plant and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts. The profit or loss on such disposition is reflected in operating income.

*
(187) SIGMA ALDRICH CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/9/2011; SIC code:5160 (WHOLESALE-CHEMICALS & ALLIED PRODUCTS)
Network: http://www.sigmaaldrich.com/taxonomy/role/DisclosureSummaryOfSignificantAccountingPoliciesPolicy
[Table]:

Property, Plant and Equipment The cost of property, plant and equipment is depreciated over the estimated useful lives of the assets using the straight-line method with lives ranging from three to twelve years for machinery and equipment and fifteen to forty years for buildings and improvements. Depreciation expense was $80, $81, and $87 for the years ended December 31, 2010, 2009 and 2008, respectively. The Company capitalizes interest as part of the cost of constructing major facilities and equipment.

*
(188) SLM CORP (SEC Filing, XBRL), Form: 10-K; Filing date: 2/28/2011; SIC code:6141 (PERSONAL CREDIT INSTITUTIONS)
Network: http://salliemae.com/role/SignificantAccountingPoliciesPolicies
[Table]:
 
Software Development Costs
 
Certain direct development costs associated with internal-use software are capitalized, including external direct costs of services and payroll costs for employees devoting time to the software projects. These costs are included in other assets and are amortized over a period not to exceed five years beginning when the asset is technologically feasible and substantially ready for use. Maintenance costs and research and development costs relating to software to be sold or leased are expensed as incurred.
 
During the years ended December 31, 2010, 2009 and 2008, we capitalized $14 million, $16 million and $23 million, respectively, in costs related to software development, and expensed $154 million, $138 million and $120 million, respectively, related to routine maintenance, betterments and amortization. At December 31, 2010 and 2009, the unamortized balance of capitalized internally developed software included in other assets was $44 million and $53 million, respectively. We amortize software development costs over three to five years.
*
(189) SOUTHERN CO (SEC Filing, XBRL), Form: 10-K; Filing date: 2/25/2011; SIC code:4911 (ELECTRIC SERVICES)
Network: http://southerncompany.com/role/SummaryOfSignificantAccountingPoliciesPolicies
[Table]:
Property, Plant, and Equipment
Property, plant, and equipment is stated at original cost less regulatory disallowances and impairments. Original cost includes: materials; labor; minor items of property; appropriate administrative and general costs; payroll-related costs such as taxes, pensions, and other benefits; and the interest capitalized and/or cost of funds used during construction.
Southern Company’s property, plant, and equipment consisted of the following at December 31:
                 
    2010     2009  
    (in millions)  
Generation
  $ 30,121     $ 28,204