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These excerpts taken from the GIS 10-K filed Jul 11, 2008. Land, Buildings, Equipment,
and Depreciation Land is recorded at
historical cost. Buildings and equipment, including capitalized
interest and internal engineering costs, are recorded at cost
and depreciated over estimated useful lives, primarily using the
straight-line method. Ordinary maintenance and repairs are
charged to cost of sales. Buildings are usually depreciated over
40 to 50 years, and equipment, furniture, and software are
usually depreciated over 3 to 15 years. Fully depreciated
assets are retained in buildings and equipment until disposal.
When an item is sold or retired, the accounts are relieved of
its cost and related accumulated depreciation; the resulting
gains and losses, if any, are recognized in earnings. As of
May 25, 2008, assets held for sale were insignificant.
Long-lived assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount of an
asset (or asset group) may not be recoverable. An impairment
loss would be recognized when estimated undiscounted future cash
flows from the operation and disposition of the asset group are
less than the carrying amount of the asset group. Asset groups
have identifiable cash flows and are largely independent of
other asset groups. Measurement of an impairment loss would be
based on the excess of the carrying amount of the asset group
over its fair value. Fair value is measured using a discounted
cash flow model or independent appraisals, as appropriate.
Land, Buildings, Equipment, and Depreciation Land is recorded at historical cost. Buildings and equipment, including capitalized interest and internal engineering costs, are recorded at cost and depreciated over estimated useful lives, primarily using the straight-line method. Ordinary maintenance and repairs are charged to cost of sales. Buildings are usually depreciated over 40 to 50 years, and equipment, furniture, and software are usually depreciated over 3 to 15 years. Fully depreciated assets are retained in buildings and equipment until disposal. When an item is sold or retired, the accounts are relieved of its cost and related accumulated depreciation; the resulting gains and losses, if any, are recognized in earnings. As of May 25, 2008, assets held for sale were insignificant. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows from the operation and disposition of the asset group are less than the carrying amount of the asset group. Asset groups have identifiable cash flows and are largely independent of other asset groups. Measurement of an impairment loss would be based on the excess of the carrying amount of the asset group over its fair value. Fair value is measured using a discounted cash flow model or independent appraisals, as appropriate. | EXCERPTS ON THIS PAGE:
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