Depreciation Policies. The Borrower's depreciation policies with respect to the Equipment are as set forth on Schedule 5.22. These policies have been in effect substantially without change since January 1, 1998.
Depreciation Policies. The Borrowers' depreciation policies with respect to the Equipment are as set forth on Exhibit H. These policies have been in effect substantially without change since January 1, 1997.
Depreciation Policies. The Borrower’s depreciation policies in effect as of the Closing Date with respect to the Engines and the Equipment are as set forth on Schedule 5.21.
Depreciation Policies. AeroCentury's current depreciation policies are as set forth in Exhibit E. These policies have been in effect without change since January 1, 1997.
Depreciation Policies. The Company’s interests in aircraft and aircraft engines are recorded at cost, which includes acquisition costs. Since inception, the Company has purchased only used aircraft and aircraft engines. It is the Company’s policy to hold aircraft for approximately twelve years unless market conditions dictate otherwise. Therefore, depreciation on aircraft is initially computed using the straight-line method over the twelve-year period to an estimated residual value based on appraisal. The Company estimates the period over which it will hold aircraft engines based upon estimated usage, repair costs and other factors, and depreciates them to their appraised residual value over such period using the straight-line method. The Company periodically reviews plans for lease or sale of its aircraft and aircraft engines and changes, as appropriate, the remaining expected holding period for such assets. Estimated residual values are reviewed and adjusted periodically, based upon updated appraised residual estimates. Decreases in the market value of aircraft could affect not only the current value, discussed above, but also the estimated residual value W02-WEST:5JDA1\402456128.14 Schedule 5.22 — Page AeroCentury – Loan and Security Agreement 0A22-152811 Schedule 6.4 Insurance as of the Closing Date See Schedule 5.19 W02-WEST:5JDA1\402456128.14 Schedule 6.4 — Page AeroCentury – Loan and Security Agreement 0A22-152811 Schedule 7.13 Indebtedness and Guaranteed Indebtedness existing on the Closing Date [to be appended] W02-WEST:5JDA1\402456128.14 Schedule 7.13 — Page AeroCentury – Loan and Security Agreement 0A22-152811 Schedule 7.21 Investments Existing as of the Closing Date None. W02-WEST:5JDA1\402456128.14 AeroCentury – Loan and Security Agreement
Depreciation Policies. The Borrower’s depreciation policies with respect to the Engines are as set forth on Exhibit G. These policies have been in effect substantially without change since January 1, 1997.
Depreciation Policies. The Borrower generally depreciates engines on a straight-line basis over 15 years to a 55% residual value. Spare parts packages are generally depreciated on a straight-line basis over 15 years to a 25% residual value. Aircraft are generally depreciated on a straight-line basis over 13-20 years to a 15%-17% residual value. For equipment which is unlikely to be repaired at the end of its current expected life, and is likely to be disassembled upon lease termination, we depreciate the equipment over its estimated life to a residual value based on an estimate of the wholesale value of the parts after disassembly. Currently, 23 engines having a net book value of $44.2 million are depreciated using this policy. If useful lives or residual values are lower than those estimated by us, upon sale of the equipment, a loss may be realized. It is our policy to review estimates regularly to more accurately expense the cost of equipment over the useful life of the engines. Beginning April 1, 2008 and again on July 1, 2008, we changed the depreciation estimate related to certain older engine types in our portfolio. This change in depreciation estimate resulted in a $3.8 million increase in depreciation during 2008 and on an annual basis will result in an increase in depreciation expense of $6.8 million per year assuming no change in our portfolio. The net effect of these changes in depreciation estimates is a reduction in 2008 net income of $2.4 million or $0.28 in diluted earnings per share over what net income would have otherwise been had these changes in depreciation estimates not been made. Schedule 5.22 Non-Lender Protection Agreements as of the Closing Date None Schedule 5.23 Eligible Leases as of the Closing Date Model Serial No. Lessee *1 APU *** *** 2 RB211-535E4 *** *** 3 PW118 *** *** 4 PW121 *** *** 5 PW121 *** *** 6 PW121 *** *** 7 PW124 *** *** 8 PW121 *** *** 9 PW121 *** *** 10 PW123 *** *** 11 PW123 *** *** 12 PW124B *** *** 13 PW124 *** *** 14 PW124 *** *** 15 PW125 *** *** *16 CF34-8C5 *** *** 17 CF34-8C5 *** *** *18 CF6-50C2 *** *** 19 CFM56-5B *** *** 20 CFM56-5B4/P *** *** 21 CF6-80C2B4 *** *** 22 CF6-80C2B4 *** *** 23 CFM56-5B *** *** 24 CF6-80C2B7F *** *** 25 CF6-80C2B4F *** *** 26 CF6-80C2B7F *** *** 27 JT8D-219 *** *** 28 PW2037 *** *** *29 CFM56-3C1 *** *** 30 CFM56-3C1 *** *** 31 CFM56-3C1 *** *** *** Confidential information omitted pursuant to a request for confidential treatment filed separately with the Securities and Exchange Commission 32...
Depreciation Policies. Xxxxxxxx’s depreciation policies in effect as of the Amendment No. 4 Effective Date with respect to the Engines, the Equipment and the Specified Assets are as set forth on Schedule 5.21. 5.22
Depreciation Policies. The Company’s interests in aircraft and aircraft engines are recorded at cost, which includes acquisition costs. It is the Company’s policy to hold aircraft for approximately twelve years unless market conditions dictate otherwise. Therefore, depreciation of aircraft is initially computed using the straight-line method over the twelve-year period to an estimated residual value based on appraisal. For an aircraft engine held for lease as a spare, the Company estimates the length of time that it will hold the aircraft engine based upon estimated usage, repair costs and other factors, and depreciates it to the appraised residual value over such period using the straight-line method. The Company periodically reviews plans for lease or sale of its aircraft and aircraft engines and changes, as appropriate, the remaining expected holding period for such assets. Estimated residual values are reviewed and adjusted periodically, based upon updated estimates obtained from an independent appraiser. Decreases in the fair value of aircraft could affect not only the current value but also the estimated residual value. Schedule 6.4 Insurance as of the Closing Date See Schedule 5.19 Schedule 7.13 Indebtedness and Guaranteed Indebtedness Existing on the Closing Date
Depreciation Policies. Property and equipment are stated at cost. Maintenance and repairs that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Depreciation and amortization for financial statement purposes are provided on a straight-line basis over the estimated useful lives of the assets. When we construct assets, we capitalize costs of the project, including, but not limited to, certain preacquisition costs, permitting costs, fees paid to architects and contractors, certain costs of our design and construction subsidiary, property taxes and interest. We must make estimates and assumptions when accounting for capital expenditures. Whether an expenditure is considered an operating expense or a capital asset is a matter of judgment. When constructing or purchasing assets, we must determine whether existing assets are being replaced or otherwise impaired, which also is a matter of judgment. Our depreciation expense for financial statement purposes is highly dependent on the assumptions we make about our assets’ estimated useful lives. We determine the estimated useful lives based upon our experience with similar assets, industry, legal and regulatory factors, and our expectations of the usage of the asset. Whenever events or circumstances occur which change the estimated useful life of an asset, we account for the change prospectively. Interest costs associated with major development and construction projects are capitalized as part of the cost of the project. Interest is typically capitalized on amounts expended using the weighted-average cost of our outstanding borrowings, since we typically do not borrow funds directly related to a development or construction project. We capitalize interest on a project when development or construction activities begin and cease when such activities are substantially complete or are suspended for more than a brief period.
