WIN » Topics » Depreciation and Amortization Expense

This excerpt taken from the WIN 10-Q filed May 8, 2009.

Depreciation and Amortization Expense

Depreciation and amortization expense primarily includes the depreciation of the Company’s plant assets and the amortization of its definite-lived intangible assets. The following table reflects the primary drivers of year-over-year changes in depreciation and amortization expense:

Depreciation and amortization expense

      Three Months Ended
March 31, 2009
 
       Increase         
(Millions)      (Decrease)      %    

Due to increases in amortization of franchise rights (a)

   $ 8.0   

Other

     2.4   

Total depreciation and amortization expense

   $ 10.4    9 %

 

(a) Effective January 1, 2009, the Company began amortizing its franchises rights on a straight-line basis over an estimated useful life of 30 years. Previously, the Company estimated its franchise rights as having an indefinite useful life, but the effects of increasing competition resulted in a prospective change in the estimated useful life of these franchise rights (see Note 4).
This excerpt taken from the WIN 10-K filed Feb 19, 2009.

Depreciation and Amortization Expense

Depreciation and amortization expense primarily includes the depreciation of the Company’s plant assets and the amortization of its definite-lived intangible assets. The following table reflects the primary drivers of year-over-year changes in depreciation and amortization expense:

 

Depreciation and amortization expense  
     Twelve months ended
December 31, 2008
    Twelve months ended
December 31, 2007
 
(Millions)    Increase
(Decrease)
        %         Increase
  (Decrease)  
        %      

Due to Valor acquisition

   $                   -       $             66.5    

Due to CTC acquisition

     22.4         11.0    

Due to depreciation rate studies and other

     (35.4 )           (18.3 )      

Total depreciation and amortization expense

   $     (13.0 )   (3 )%   $ 59.2     13 %

Depreciation expense decreased in 2008 primarily due to the completion of studies of the Company’s depreciable lives during the second and fourth quarters of 2007, which lowered its depreciation rates. Depreciable lives were revised to reflect the estimated remaining useful lives of wireline plant based on the Company’s expected future network utilization and capital expenditure levels required to provide service to its customers (see Note 2). Partially offsetting this decrease was an increase due to the acquisition of CTC, including the amortization of acquired intangible assets (see Note 4).

The increase in depreciation expense in 2007 was due primarily to the acquisitions of Valor and CTC, including the amortization of acquired intangible assets, partially offset by the studies of depreciable lives completed during the second and fourth quarters of 2007, as discussed above, as well as additional studies completed during 2006 that resulted in a reduction in depreciation expense.

This excerpt taken from the WIN 10-Q filed Nov 7, 2008.

Depreciation and Amortization Expense

Depreciation and amortization expense primarily includes the depreciation of the Company’s plant assets and the amortization of its definite-lived intangible assets. The following table reflects the primary drivers of year-over-year changes in depreciation and amortization expense:

Depreciation and amortization expense

      Three Months Ended
September 30, 2008
    Nine Months Ended
September 30, 2008
 
(Millions)    Increase
(Decrease)
    %     Increase
(Decrease)
    %  

Due to CTC acquisition

   $ 5.6       $ 22.4    

Due to depreciation rate studies and other

     (14.1 )           (37.9 )      

Total depreciation and amortization expense

   $ (8.5 )   (6 )%   $ (15.5 )   (4 )%

Decreases in depreciation expense in 2008 primarily reflect the results of studies completed during the second and fourth quarters of 2007 that lowered the Company’s depreciation rates. Depreciable lives were revised to reflect the estimated remaining useful lives of wireline plant based on the Company’s expected future network utilization and capital expenditure levels required to provide service to its customers. Partially offsetting these decreases was the increase related to the acquisition of CTC.

This excerpt taken from the WIN 10-Q filed Aug 8, 2008.

Depreciation and Amortization Expense

Depreciation and amortization expense primarily includes the depreciation of the Company’s plant assets and the amortization of its definite-lived intangible assets. The following table reflects the primary drivers of year-over-year changes in depreciation and amortization expense:

 

Depreciation and amortization expense         
      Three Months Ended
June 30, 2008
    Six Months Ended
June 30, 2008
 
(Millions)    Increase
(Decrease)
    %     Increase
(Decrease)
    %  

Due to CTC acquisition

   $ 8.5       $ 16.8    

Due to depreciation rate studies and other

     (12.5 )       (23.8 )  

Total depreciation and amortization expense

   $ (4.0 )   (3 )%   $ (7.0 )   (3 )%

Decreases in depreciation expense in 2008 primarily reflect the results of studies completed during the second and fourth quarters of 2007 that lowered the Company’s depreciation rates. Depreciable lives were revised to reflect the estimated remaining useful lives of wireline plant based on the Company’s expected future network utilization and capital expenditure levels required to provide service to its customers. Partially offsetting these decreases was the increase related to the acquisition of CTC, including the amortization of acquired intangible assets (see Note 4).

This excerpt taken from the WIN 10-Q filed May 9, 2008.

Depreciation and Amortization Expense

Depreciation and amortization expense primarily includes the depreciation of the Company’s plant assets and the amortization of its definite-lived intangible assets. The following table reflects the primary drivers of year-over-year changes in depreciation and amortization expense:

 

Depreciation and amortization expense               
     Three Months Ended
March 31, 2008
 
(Millions)   

Increase

(Decrease)

    %  

Due to CTC acquisition

   $ 8.3    

Due to depreciation rate studies and other

     (11.3 )      

Total depreciation and amortization expense

   $ (3.0 )   (2 )%

Decreases in depreciation expense in 2008 primarily reflect the results of studies completed during the second and fourth quarters of 2007 that lowered the Company’s depreciation rates. Depreciable lives were revised to reflect the estimated remaining useful lives of wireline plant based on the Company’s expected future network utilization and capital expenditure levels required to provide service to its customers. Partially offsetting these decreases in depreciation and amortization expense was the increase for the acquisition of CTC, including the amortization of acquired intangible assets (See Note 4).

These excerpts taken from the WIN 10-K filed Feb 29, 2008.

Depreciation and Amortization Expense

Depreciation and amortization expense primarily includes the depreciation of the Company’s plant assets and the amortization of its definite-lived intangible assets. The following table reflects the primary drivers of year-over-year changes in depreciation and amortization expense:

 

Depreciation and amortization expense      
     Twelve months ended
December 31, 2007
   Twelve months ended
December 31, 2006
(Millions)    Increase
(Decrease)
    %    Increase
(Decrease)
    %

Due to Valor acquisition

   $    66.5      $    56.4  

Due to CTC acquisition

         11.0                -  

Due to depreciation rate studies and other

         (18.3)              (80.6)    

Total depreciation and amortization expense

   $    59.2   13%    $    (24.2)   5%

Increases in depreciation and amortization expense in 2007 are primarily due to the acquisitions of Valor and CTC, including the amortization of acquired intangible assets (See Note 4). Partially offsetting these increases were decreases in depreciation expense reflecting the results of studies completed during the second and fourth quarters of 2007 and during 2006 that lowered the Company’s depreciation rates. Depreciable lives were revised to reflect the estimated remaining useful lives of wireline plant based on the Company’s expected future network utilization and capital expenditure levels required to provide service to its customers (See Note 2).

Depreciation and Amortization Expense

FACE="Times New Roman" SIZE="2">Depreciation and amortization expense primarily includes the depreciation of the Company’s plant assets and the amortization of its definite-lived intangible assets. The following table reflects the primary
drivers of year-over-year changes in depreciation and amortization expense:

 
















































































Depreciation and amortization expense    
   Twelve months ended
December 31, 2007
  Twelve months ended
December 31, 2006
(Millions)  Increase
(Decrease)
   %  Increase
(Decrease)
   %

Due to Valor acquisition

  $    66.5   $    56.4 

Due to CTC acquisition

        11.0             - 

Due to depreciation rate studies and other

        (18.3)          (80.6)  

Total depreciation and amortization expense

  $    59.2 13%  $    (24.2) 5%

Increases in depreciation and amortization expense in 2007 are primarily due to the acquisitions of Valor and CTC,
including the amortization of acquired intangible assets (See Note 4). Partially offsetting these increases were decreases in depreciation expense reflecting the results of studies completed during the second and fourth quarters of 2007 and during
2006 that lowered the Company’s depreciation rates. Depreciable lives were revised to reflect the estimated remaining useful lives of wireline plant based on the Company’s expected future network utilization and capital expenditure levels
required to provide service to its customers (See Note 2).

This excerpt taken from the WIN 10-Q filed Nov 8, 2007.

Depreciation and Amortization Expense

Depreciation and amortization expense primarily includes the depreciation of the Company’s plant assets and the amortization of its definitive-lived intangible assets. The following table reflects the primary drivers of year-over-year changes in depreciation and amortization expense:

Depreciation and amortization expense

      Three Months Ended
September 30, 2007
   Nine Months Ended
September 30, 2007
(Millions)    Increase
(Decrease)
   %    Increase
(Decrease)
  %

Due to Valor acquisition

   $3.7      

$ 64.6 

 

Due to CTC acquisition

     4.4      

     4.4 

 

Other

     0.4        

    (8.3)

   

Total depreciation and amortization expense

   $8.5    7%   

$ 60.7 

  19%

Increases in depreciation and amortization expense in 2007 are primarily due to the acquisitions of Valor and CTC, including the amortization of acquired intangible assets (See Note 6). Partially offsetting these increases were decreases in depreciation expense reflecting the results of studies completed during the second quarter of 2007 and during 2006 that lowered the Company’s depreciation rates. Depreciable lives were revised to reflect the estimated remaining useful lives of wireline plant based on the Company’s expected future network utilization and capital expenditure levels required to provide service to its customers (See Note 2). During the remainder of 2007, the Company expects to review the depreciation rates utilized in its remaining wireline operations that have not been reviewed over the last three years.

"Depreciation and Amortization Expense" elsewhere:

Verizon Communications (VZ)
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