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These excerpts taken from the AAPL 10-K filed Dec 1, 2005. Accounting for Asset
Retirement Obligations. The Company reviews legal obligations
associated with the retirement of long-lived assets that result from the
acquisition, construction, development and/or normal use of the assets. If it
is determined that a legal obligation exists, the fair value of the liability
for an asset retirement obligation is recognized in the period in which it is
incurred if a reasonable estimate of fair value can be made. The fair value of
the liability is added to the carrying amount of the associated asset and this
additional carrying amount is depreciated over the life of the asset. The
difference between the gross expected future cash flow and its present value is
accreted over the life of the related lease as an operating expense. All of the
Company’s existing asset retirement obligations are associated with commitments
to return property subject to operating leases to original condition upon lease
termination.
The following table reconciles changes in the Company’s asset retirement liabilities for fiscal 2004 and 2005 (in millions):
Accounting for Asset Retirement Obligations. The Company reviews legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal use of the assets. If it is determined that a legal obligation exists, the fair value of the liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The fair value of the liability is added to the carrying amount of the associated asset and this additional carrying amount is depreciated over the life of the asset. The difference between the gross expected future cash flow and its present value is accreted over the life of the related lease as an operating expense. All of the Company’s existing asset retirement obligations are associated with commitments to return property subject to operating leases to original condition upon lease termination. The following table
These excerpts taken from the AAPL 10-K filed Dec 3, 2004. Accounting for Asset Retirement Obligations On September 29, 2002, the Company adopted SFAS No. 143, Accounting for Asset Retirement Obligations, which addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. Net of the related income tax effect of approximately $1 million, adoption of SFAS No. 143 resulted in an unfavorable cumulative-effect type adjustment to net income during 2003 of approximately $2 million. This adjustment represents cumulative depreciation and accretion that would have been recognized through the date of adoption of SFAS No. 143 had the statement been applied to the Company's existing asset retirement obligations at the time they were initially incurred. Accounting for Asset Retirement Obligations On September 29, 2002, the Company adopted SFAS No. 143, Accounting for Asset Retirement Obligations, which These excerpts taken from the AAPL 10-K filed Dec 19, 2003. Accounting for Asset Retirement Obligations On September 29, 2002, the Company adopted SFAS No. 143, Accounting for Asset Retirement Obligations, which addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. Net of the related income tax effect of approximately $1 million, adoption of SFAS No. 143 resulted in an unfavorable cumulative-effect type adjustment to net income during 2003 of approximately $2 million. This adjustment represents cumulative depreciation and accretion that would have been recognized through the date of adoption of SFAS No. 143 had the statement been applied to the Company's existing asset retirement obligations at the time they were initially incurred. Accounting for Asset Retirement Obligations On September 29, 2002, the Company adopted SFAS No. 143, Accounting for Asset Retirement Obligations, which | EXCERPTS ON THIS PAGE:
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