Depreciation Adjustments Sample Clauses
The Depreciation Adjustments clause defines how the value of assets is reduced over time for accounting or settlement purposes within an agreement. Typically, this clause outlines the method and schedule for calculating depreciation, such as straight-line or accelerated methods, and specifies which assets are subject to these adjustments. By establishing clear rules for depreciation, the clause ensures that asset values are accurately reflected in financial statements or during asset transfers, thereby preventing disputes and ensuring fair allocation of costs or proceeds.
Depreciation Adjustments. Notwithstanding anything to the contrary in Section 6.2.A.(a)(iv) of this Agreement, for any Partnership Year or other applicable period, (a) allocations of Net Income to the Series A Preferred Units with respect to that portion of their Series A Preferred Priority Return consisting of 5.00% per annum on the Series A Preferred Stated Value per Series A Preferred Unit shall be exclusive of Depreciation, and (b) the Series A Preferred Units shall be allocated Depreciation on a proportionate basis with respect to the remaining portion of their Series A Preferred Priority Return consisting of the Series A Preferred Return. For purposes of Section 6.2.D.(b) above, Depreciation shall be allocated to the Series A Preferred Units based on a fraction, the numerator of which is that portion of the Series A Preferred Priority Return for a Partnership Year or other applicable period that constitutes the Series A Preferred Return, and the denominator of which is the Adjusted Section 704(b) Net Income for such Partnership Year or other applicable period.
Depreciation Adjustments. Notwithstanding anything to the contrary in Section 6.2.A.(a)(iv) of this Agreement, for any Partnership Year or other applicable period, (a) allocations of Net Income to the Series A Preferred Units with respect to that portion of their Series A Preferred Priority Return consisting of 5.00% per annum on the Series A Preferred Stated Value per Series A Preferred Unit shall be exclusive of Depreciation, and
Depreciation Adjustments. Reflects the net decrease in depreciation expense from $112.4 million to $27.0 million for the nine months ended September 30, 2017 and $185.2 million to $36.0 million for the year ended December 31, 2016 as a result of applying business combination accounting as of January 1, 2016. The expected useful lives used to arrive at pro forma depreciation were 23.2 years for pipelines, 16.4 years for other plant equipment, 4.4 years for furniture and fixtures, 5.2 years for vehicles and 23.2 years for rights of way.