Protection One (PONE)

(c)   Property and Equipment

        Property and equipment are stated at cost and are depreciated using the straight-line method over estimated useful lives. Gains or losses from retirements and dispositions of property and equipment are recognized in operations in the period realized. Repair and maintenance costs are expensed as incurred. The Company is required to perform impairment tests for long-lived assets when the Company determines that indicators of impairment are present.

        Estimated useful lives of property and equipment are as follows:

3. Property and Equipment:

        The following reflects the Company's carrying value in property and equipment as of the following periods (dollar amounts in thousands):

        Depreciation expense was $12.6 million, $11.0 million and $9.1 million for the years ended December 31, 2008, 2007 and 2006, respectively.

        The amount of fixed asset additions included in accounts payable as of December 31, 2008 and 2007 was $0.7 million and $0.4 million, respectively.

Fixed Assets under Operating Leases

        Rental equipment is comprised of commercial security equipment that does not require monitoring services by the Company and is leased to customers, typically over a 5-year initial lease term. Accumulated depreciation of approximately $2.6 million and $1.1 million was recorded on these assets as of December 31, 2008 and 2007, respectively. The following is a schedule by year of minimum future rental receipts on non-cancelable operating leases as of December 31, 2008 and does not include payments received at the inception of the lease (dollar amounts in thousands):

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(c)   Property and Equipment

        Property and equipment are stated at cost and are depreciated using the straight-line method over estimated useful lives. Gains or losses from
retirements and dispositions of property and equipment are recognized in operations in the period realized. Repair and maintenance costs are expensed as incurred. The Company is required to perform
impairment tests for long-lived assets when the Company determines that indicators of impairment are present.

        Estimated
useful lives of property and equipment are as follows:

3. Property and Equipment:

        The following reflects the Company's carrying value in property and equipment as of the following periods (dollar amounts in
thousands):

        Depreciation
expense was $12.6 million, $11.0 million and $9.1 million for the years ended December 31, 2008, 2007 and 2006, respectively.

        The
amount of fixed asset additions included in accounts payable as of December 31, 2008 and 2007 was $0.7 million and $0.4 million, respectively.

Fixed Assets under Operating Leases

        Rental equipment is comprised of commercial security equipment that does not require monitoring services by the Company and is leased
to customers, typically over a 5-year initial lease term. Accumulated depreciation of approximately $2.6 million and $1.1 million was recorded on these assets as of
December 31, 2008 and 2007, respectively. The following is a schedule by year of minimum future rental receipts on non-cancelable operating leases as of December 31, 2008 and
does not include payments received at the inception of the lease (dollar amounts in thousands):

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2.             Property and Equipment:

The following reflects the Company’s carrying value in property and equipment as of the following periods (dollars in thousands):

Depreciation expense was $3.3 million and $2.1 million for the three months ended March 31, 2008 and 2007, respectively.  The amount of fixed asset additions included in accounts payable as of March 31 was $0.1 million for each of 2008 and 2007.

4. Property and Equipment:

        The following reflects the Company's carrying value in property and equipment as of the following periods (dollar amounts in thousands):

        Depreciation expense was $11.0 million and $9.1 million for the years ended December 31, 2007 and 2006, respectively. Depreciation expense was $11.1 million for the period February 9, 2005 through December 31, 2005 and $1.0 million for the period January 1, 2005 through February 8, 2005.

        The amount of fixed asset additions included in accounts payable as of December 31, 2007, 2006 and 2005 was $0.4 million, $0.6 million and $0.3 million, respectively.

Fixed Assets under Operating Leases

        Rental equipment is comprised of commercial security equipment that does not require monitoring services by the Company and is leased to customers, typically over a 5-year initial lease term. Accumulated depreciation of approximately $1.1 million and $0.3 million was recorded on these assets as of December 31, 2007 and 2006, respectively. The following is a schedule by year of minimum future rental receipts on non-cancelable operating leases as of December 31, 2007 and does not include payments received at the inception of the lease (dollar amounts in thousands):

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4. Property and Equipment:

        The following reflects the Company's carrying value in property and equipment as of the following periods (dollar amounts in thousands):

        Depreciation
expense was $11.0 million and $9.1 million for the years ended December 31, 2007 and 2006, respectively. Depreciation expense was $11.1 million
for the period February 9, 2005 through December 31, 2005 and $1.0 million for the period January 1, 2005 through February 8, 2005.

        The
amount of fixed asset additions included in accounts payable as of December 31, 2007, 2006 and 2005 was $0.4 million, $0.6 million and $0.3 million,
respectively.

Fixed Assets under Operating Leases

        Rental equipment is comprised of commercial security equipment that does not require monitoring services by the Company and is leased to customers, typically over
a 5-year initial lease term. Accumulated depreciation of approximately $1.1 million and $0.3 million was recorded on these assets as of December 31, 2007 and 2006,
respectively. The following is a schedule by year of minimum future rental receipts on non-cancelable operating leases as of December 31, 2007 and does not include payments received
at the inception of the lease (dollar amounts in thousands):

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5. Property and Equipment:

The following reflects the Company’s carrying value in property and equipment as of the following periods (in thousands):

Depreciation expense was $7.8 million and $7.1 million for the nine months ended September 30, 2007 and 2006, respectively, and was $2.9 million and $1.9 million for the three months ended September 30, 2007 and 2006, respectively.