Obsolescence Reserve definition

Obsolescence Reserve an amount equal to 50% of the excess of (a) total Wholesale Inventory held by the Borrower over (b) the Inventory listed in the Borrower's buyers' guide; provided that during the Peak Period such percentage shall be reduced to 25% so long as the Borrower provides the supporting documentation and additional reports described in Schedule I to Exhibit J with respect to such Wholesale Inventory.

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Obsolescence Reserve means the reserve established by Sellers for the obsolescence of inventory in the amount reflected in the calculation of the Closing Net Cash Asset Amount.

Obsolescence Reserve an amount equal to 50% of the excess of (a) total Wholesale Inventory held by the Borrower over (b) the Inventory listed in the Borrower's buyers' guide; PROVIDED that during the Peak Period such percentage shall be reduced to 25% so long as the Borrower provides the supporting documentation and additional reports described in Schedule I to Exhibit J with respect to such Wholesale Inventory.

Examples of Obsolescence Reserve in a sentence

To the Best Knowledge of Seller, the Obsolescence Reserve shown on Exhibit A is adequate to cover obsolete and unsalable Inventory.
To the extent, if any, that (A) exceeds (B), such excess, referred to as the "Obsolescence Reserve Credit," will be ignored in this calculation, but shall be taken into account in the calculation made pursuant to Section 2.03(b)(iv) of the Transition Agreement.
All amounts of Inventory reflected on the Closing Report, subject to the Obsolescence Reserve, will represent bona fide inventories of the Seller on hand at the Closing Date and will be valued thereon as set forth in the preceding sentence.
Subject to the Obsolescence Reserve reflected on the Interim Balance Sheet, all amounts of Inventory reflected on the Interim Balance Sheet represent bona fide inventories of the Seller on hand at December 31, 1997, Inventory consisting of x-ray machines are valued thereon at the specific identified cost and all other Inventory is valued thereon at the lower of average cost or market value, which is consistent with Seller's past practices as historically applied.
All Inventories, net of the Obsolescence Reserve, are in good and usable condition and are currently marketable in the ordinary course of business; and the values thereof as shown by the books of Seller do not exceed the aggregate of cost (determined on a FIFO basis) or market thereof (whichever is lower) in accordance with U.S. GAAP consistently applied with the Financial Statements.
All Inventories, net of the Obsolescence Reserve, are in good and usable condition and are currently marketable in the ordinary course of business; and the values thereof as shown by the books of Seller 14 19 do not exceed the aggregate of cost (determined on a FIFO basis) or market thereof (whichever is lower) in accordance with U.S. GAAP consistently applied with the Financial Statements.

More Definitions of Obsolescence Reserve

Obsolescence Reserve includes all inventory that has been reserved for in accordance with GAAP that the Company feels has been impaired consistent with the company accounting policies described below.

Obsolescence Reserve means, as of any date, the reserve for slow moving or obsolete inventory determined as of such date in accordance with U.S. GAAP.

Obsolescence Reserve means the amount at any time and from time to time that is or should, in accordance with GAAP, be included as a contra-account to inventory on the Company's balance sheet as the "reserve for obsolescence," "reserve for slow-moving inventory" or other similar contra-account to inventory (excluding, however, any "LIFO reserve").