This excerpt taken from the VLG 10-K filed Sep 28, 2006.
Property, Plant and Equipment
Valleys property, plant and equipment are carried at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the properties, while leasehold improvements are amortized over the shorter of their useful life or the term of the lease which is consistent with the lease term used to recognize rent expense as follows:
The cost of maintenance and repairs is charged to operations as incurred. Major renewals and betterments that extend the useful life of the asset are capitalized. The costs of property, plant and equipment retired or otherwise disposed of and the related accumulated depreciation or amortization are removed from the accounts, and any resulting gain or loss is reflected in income from operations. See Note 14 for information related to property plant and equipment owned by the Variable Interest Entities.