![]() ![]() ![]() Neither the Company nor any Subsidiary has acquired or committed to acquire or manufacture Inventory for sale which is not of a quality and quantity usable in the ordinary course of business within a reasonable period of time and consistent with past practice, nor has the Company or any Subsidiary changed the price of any Inventory except for (i) price reductions to reflect any reduction in the cost thereof to the Company or such Subsidiary, (ii) reductions and increases responsive to normal competitive conditions and consistent with the Company's or such Subsidiary's past sales practices, (iii) increases to reflect any increase in the cost thereof to the Company or such Subsidiary and (iv) increases and reductions made with the written consent of the Purchaser. No clearance or extraordinary sale of the Inventories has been conducted since the Reference Balance Sheet Date. Neither the Company nor any Subsidiary is under any obligation or liability with respect to accepting returns of items of Inventory or merchandise in the possession of their customers other than in the ordinary course of business consistent with past practice. The Inventories do not consist of any items held on consignment to the Company. WRITEDOWN OF EQUIPMENT FREEThe Company or a Subsidiary, as the case may be, has good and marketable title to the Inventories free and clear of all Encumbrances. Inventories (a) Subject to amounts reserved therefor on the Reference Balance Sheet, the values at which all Inventories are carried on the Reference Balance Sheet reflect the historical inventory valuation policy of the Company and the Subsidiaries of stating such Inventories at the lower of cost (determined on the first-in, first-out method) or market value. ![]() The following schedule details the capitalization thresholds: Capitalization Policy Estimated Useful Life Land$ 00Buildings50,00040 yearsBuilding improvements25,00020 yearsImprovements other than buildings25,00020 yearsMobile equipment5,0005-10 yearsFurniture and equipment5,0003-7 yearsLeased property under capital leases** (*) The threshold amount will correspond with the amounts for the asset classifications, as listed. Depreciation is calculated on the straight-line basis for all assets, except land. Capital acquisition and construction are reflected as expenditures in the Governmental Fund statements and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost in excess of the thresholds in the table below. The costs of normal maintenance and repair that do not add to the value of the asset or materially extend asset lives are not capitalized. Donated capital assets are recorded at estimated fair market value at the date of donation. Capital assets are recorded at historical cost or estimated historical cost based on appraisals or deflated current replacement cost. Capital assets are reported in the applicable governmental or business type activities columns in the government-wide Statement of Net Position. Investments Make any Investments, except:Ĭapital Assets Capital assets include land, improvements to land, easements, water rights, timber rights, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. Schedule 4.8 sets forth all patents, patent applications, trademarks, trade names and trade styles used by Borrower or any of its Subsidiaries at any time within the five (5) year period ending on the Closing Date. Intangible assets Borrower and its Subsidiaries own, or possess the right to use to the extent necessary in their respective businesses, all material trademarks, trade names, copyrights, patents, patent rights, computer software, licenses and other Intangible Assets that are used in the conduct of their businesses as now operated, and no such Intangible Asset, to the best knowledge of Borrower, conflicts with the valid trademark, trade name, copyright, patent, patent right or Intangible Asset of any other Person to the extent that such conflict could reasonably be expected to have a Material Adverse Effect. Related to WRITEDOWN OF RECEIVABLES INCLUDED IN CURRENT ASSETS AND WRITEDOWN OF CASH AND CASH EQUIVALENTSĬash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. ![]()
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