LVLT » Topics » Property, Plant and Equipment

This excerpt taken from the LVLT 8-K filed Jun 18, 2009.

Property, Plant and Equipment

 

Property, plant and equipment are recorded at cost. Depreciation and amortization for the Company’s property, plant and equipment are computed on straight-line and accelerated (for certain coal assets) methods based on the following useful lives:

 

Facility and Leasehold Improvements

 

10 - 40 years

 

Network Infrastructure (including fiber and conduit)

 

12 - 25 years

 

Operating Equipment

 

4 - 7 years

 

Furniture, Fixtures, Office Equipment and Other

 

2 - 7 years

 

 

The Company capitalizes costs directly associated with expansions and improvements of the Company’s communications network, customer installations, including employee related costs, and generally capitalizes costs associated with network construction and provisioning of services. The Company amortizes such costs over an estimated useful life of three to seven years.

 

In addition, the Company continues to develop business support systems required for its business. The external direct costs of software, materials and services, and payroll and payroll related expenses for employees directly associated with business support systems projects are also capitalized. Upon the completion of a project, the total cost of the business support system is amortized over an estimated useful life of three years.

 



 

Capitalized labor and related costs associated with employees and contract labor working on capital projects were approximately $83 million, $102 million and $72 million for the years ended December 31, 2008, 2007 and 2006, respectively.

 

Leasehold improvements are depreciated over the shorter of their estimated useful lives or lease terms that are reasonably assured.

 

The Company performs periodic internal reviews to determine depreciable lives of its property, plant and equipment based on input from global network services personnel, actual usage and the physical condition of the Company’s property, plant and equipment.

 

These excerpts taken from the LVLT 10-K filed Feb 27, 2009.

Property, Plant and Equipment

        Property, plant and equipment are recorded at cost. Depreciation and amortization for the Company's property, plant and equipment are computed on straight-line and accelerated (for certain coal assets) methods based on the following useful lives:

Facility and Leasehold Improvements

    10 - 40 years  

Network Infrastructure (including fiber and conduit)

    12 - 25 years  

Operating Equipment

    4 - 7 years  

Furniture, Fixtures, Office Equipment and Other

    2 - 7 years  

        The Company capitalizes costs directly associated with expansions and improvements of the Company's communications network, customer installations, including employee related costs, and generally capitalizes costs associated with network construction and provisioning of services. The Company amortizes such costs over an estimated useful life of three to seven years.

        In addition, the Company continues to develop business support systems required for its business. The external direct costs of software, materials and services, and payroll and payroll related expenses for employees directly associated with business support systems projects are also capitalized. Upon the completion of a project, the total cost of the business support system is amortized over an estimated useful life of three years.

        Capitalized labor and related costs associated with employees and contract labor working on capital projects were approximately $83 million, $102 million and $72 million for the years ended December 31, 2008, 2007 and 2006, respectively.

        Leasehold improvements are depreciated over the shorter of their estimated useful lives or lease terms that are reasonably assured.

        The Company performs periodic internal reviews to determine depreciable lives of its property, plant and equipment based on input from global network services personnel, actual usage and the physical condition of the Company's property, plant and equipment.

Property, Plant and Equipment



        Property, plant and equipment are recorded at cost. Depreciation and amortization for the Company's property, plant and equipment are
computed on straight-line and accelerated (for certain coal assets) methods based on the following useful lives:









































Facility and Leasehold Improvements

  10 - 40 years 

Network Infrastructure (including fiber and conduit)

  12 - 25 years 

Operating Equipment

  4 - 7 years 

Furniture, Fixtures, Office Equipment and Other

  2 - 7 years 




        The
Company capitalizes costs directly associated with expansions and improvements of the Company's communications network, customer installations, including employee related costs, and
generally capitalizes costs associated with network construction and provisioning of services. The Company amortizes such costs over an estimated useful life of three to seven years.



        In
addition, the Company continues to develop business support systems required for its business. The external direct costs of software, materials and services, and payroll and payroll
related expenses for employees directly associated with business support systems projects are also capitalized. Upon the completion of a project, the total cost of the business support system is
amortized over an estimated useful life of three years.



        Capitalized
labor and related costs associated with employees and contract labor working on capital projects were approximately $83 million, $102 million and
$72 million for the years ended December 31, 2008, 2007 and 2006, respectively.



        Leasehold
improvements are depreciated over the shorter of their estimated useful lives or lease terms that are reasonably assured.




        The
Company performs periodic internal reviews to determine depreciable lives of its property, plant and equipment based on input from global network services personnel, actual usage and
the physical condition of the Company's property, plant and equipment.



This excerpt taken from the LVLT 10-Q filed Nov 9, 2005.

7.  Property, Plant and Equipment

 

Costs associated directly with expansions and improvements to the network and customer installations, including employee related costs, have been capitalized. The Company generally capitalizes costs associated with network construction, installation services and software development.  Capitalized labor and related costs associated with employees and contract labor working on capital projects were approximately $14 million and $37 million for the three and nine months ended September 30, 2005, respectively.  Included in capitalized labor and related costs was less than $1 million and $2 million of capitalized non-cash compensation costs related to options and warrants for the three and nine month periods ended September 30, 2005, respectively. Capitalized labor and related costs associated with employees and contract labor working on capital projects were approximately $17 million and $51 million for the three and nine months ended September 30, 2004, respectively.  Included in capitalized labor and

 

14



 

related costs was less than $1 million and $2 million of capitalized non-cash compensation costs related to options and warrants for the three and nine months ended September 30, 2004, respectively.

 

The Company continues to develop business support systems required for its business. The external direct costs of software, materials and services, and payroll and payroll related expenses for employees directly associated with the project incurred when developing the business support systems are capitalized and included in the capitalized costs above. Upon completion of a project, the total cost of the business support system is amortized over a useful life of three years.

 

The Company reviews its capitalized projects at least annually or when events and circumstances indicate that the assets may be impaired.  When previously capitalized software development costs are considered to be impaired, the Company calculates and recognizes an impairment loss in accordance with the provisions of SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.”

 

Depreciation expense was $146 million and $448 million for the three and nine months ended September 30, 2005, respectively.  Depreciation expense was $155 million and $478 million for the three and nine months ended September 30, 2004, respectively.

 

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