This excerpt taken from the PATK 8-K filed Jul 5, 2007.
PropertyProperty is stated at cost, less accumulated depreciation. Additions, renewals and betterments are capitalized; maintenance and repairs, which do not extend the useful life of the asset, are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally forty years for buildings and improvements, seven years for machinery and equipment, five years for vehicles and computer equipment, three years for tooling and computer software, and five to seven years for furniture and fixtures. The cost of leasehold improvements is depreciated over the shorter of the estimated useful lives of the improvements or the terms of the related leases.
The Company assesses the potential impairment of its property by determining whether the carrying value of the property can be recovered through projected, undiscounted cash flows from future operations over the propertys remaining estimated useful life. Any impairment recognized is the amount by which the carrying value exceeds the fair value of the asset.