|
|
 | | | |
- close
- close
- close
- close
| |||||||||
These excerpts taken from the PNCL 10-K filed Mar 17, 2008. Long-Lived and Intangible
Assets
The Company evaluates whether there has
been an impairment of its long-lived and intangible assets when indicators of
impairment exist. Impairment exists when the carrying amount of a
long-lived or intangible asset is not recoverable (undiscounted cash flows are
less than the asset’s carrying value) and exceeds its fair value. If it is
determined that an impairment has occurred, the carrying value of the long-lived
asset is reduced to its fair value. The Company concluded that there
were no indicators of impairment as of December 31, 2007.
The
Company’s most significant intangible asset is its contractual rights, which
were acquired from Northwest. Among other things, the contractual
rights granted the Company the right to operate an additional ten CRJs during
the remaining term of the 2002 ASA. In consideration of these
contractual rights, the Company paid $15,115 to Northwest. The
acquired contractual rights are being amortized as an adjustment to revenue on a
straight-line basis over the remaining term of the ASA. During the
years ended December 31, 2007, 2006 and 2005, the Company recorded $1,203,
$1,203, and $680, respectively, in amortization and expects future amortization
associated with this intangible asset to be $1,203 per year through 2017. See
Note 3 for a description of Colgan’s intangible assets.
Long-Lived and Intangible Assets The Company evaluates whether there has been an impairment of its long-lived and intangible assets when indicators of impairment exist. Impairment exists when the carrying amount of a long-lived or intangible asset is not recoverable (undiscounted cash flows are less than the asset’s carrying value) and exceeds its fair value. If it is determined that an impairment has occurred, the carrying value of the long-lived asset is reduced to its fair value. The Company concluded that there were no indicators of impairment as of December 31, 2007. The Company’s most significant intangible asset is its contractual rights, which were acquired from Northwest. Among other things, the contractual rights granted the Company the right to operate an additional ten CRJs during the remaining term of the 2002 ASA. In consideration of these contractual rights, the Company paid $15,115 to Northwest. The acquired contractual rights are being amortized as an adjustment to revenue on a straight-line basis over the remaining term of the ASA. During the years ended December 31, 2007, 2006 and 2005, the Company recorded $1,203, $1,203, and $680, respectively, in amortization and expects future amortization associated with this intangible asset to be $1,203 per year through 2017. See Note 3 for a description of Colgan’s intangible assets. | EXCERPTS ON THIS PAGE:
RELATED TOPICS for PNCL: |
| |||||||
