Property, Plant and Equipment Accounting Policy
Property and equipment, net, is stated at cost, less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method for assets with useful lives as follows: buildings, 45 years; machinery, equipment and office furnishings, three to 15 years; and computer software, three to five years. Leasehold improvements are amortized over the shorter of the remaining life of the lease or the useful lives of the assets. The costs of computer software developed or obtained for internal use are capitalized and amortized on a straight-line basis over three to five years. Costs for general and administrative expenses, overhead, maintenance and training, as well as the cost of software coding that does not add functionality to existing systems, are expensed as incurred.
Source: Medco Health Solutions Inc., Annual Report
Property, Plant and Equipment Disclosure
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Medco Health Solutions Inc., Statement of Financial Position, Property, Plant and Equipment
Source: Based on data from Medco Health Solutions Inc. Annual Reports
| Item |
Description |
The company |
| Machinery, equipment and office furnishings |
Carrying amount as of the balance sheet date of long-lived, depreciable asset used in production process to produce goods and services. |
Medco Health Solutions Inc.'s machinery, equipment and office furnishings increased from 2009 to 2010 and from 2010 to 2011.
|
| Leasehold improvements |
Carrying amount at the balance sheet date of long-lived, depreciable asset that is an addition or improvement to assets held under lease arrangement. |
Medco Health Solutions Inc.'s leasehold improvements declined from 2009 to 2010 but then slightly increased from 2010 to 2011.
|
| Construction in progress |
Carrying amount at the balance sheet date of long-lived asset under construction that include construction costs to date on capital projects that have not been completed and assets being constructed that are not ready to be placed into service. |
Medco Health Solutions Inc.'s construction in progress declined from 2009 to 2010 but then increased from 2010 to 2011 not reaching 2009 level.
|
| Property and equipment, at cost |
Carrying amount at the balance sheet date for long-lived physical assets used in the normal conduct of business and not intended for resale. This can include land, physical structures, machinery, vehicles, furniture, computer equipment, construction in progress, and similar items. Amount does not include depreciation. |
Medco Health Solutions Inc.'s property and equipment, at cost increased from 2009 to 2010 and from 2010 to 2011.
|
| Property and equipment, net |
Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. |
Medco Health Solutions Inc.'s property and equipment, net increased from 2009 to 2010 and from 2010 to 2011.
|
Property, Plant and Equipment Ratios (Summary)
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Medco Health Solutions Inc., Property, Plant and Equipment Ratios
| Ratio |
Description |
The company |
| Average age |
As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company's fixed asset base is old or new. Newer assets are likely to be more efficient. |
Medco Health Solutions Inc.'s average age of depreciable property, plant and equipment improved from 2009 to 2010 and from 2010 to 2011.
|
| Estimated total useful life |
Over longer time periods, this ratio is a useful measure of company's depreciation policy and can be used for comparisons with competitors. |
Medco Health Solutions Inc.'s estimated total useful life of depreciable property, plant and equipment increased from 2009 to 2010 but then declined significantly from 2010 to 2011.
|
| Estimated time elapsed since purchase |
The approximate age in years of a company's fixed assets. Useful for comparison purposes. |
Medco Health Solutions Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2009 to 2010 and from 2010 to 2011.
|
| Estimated remaining life |
|
Medco Health Solutions Inc.'s estimated remaining life of depreciable property, plant and equipment increased from 2009 to 2010 but then slightly declined from 2010 to 2011.
|
Average Age
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2011 Calculations
| Ratio |
Description |
The company |
| Average age |
As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company's fixed asset base is old or new. Newer assets are likely to be more efficient. |
Medco Health Solutions Inc.'s average age of depreciable property, plant and equipment improved from 2009 to 2010 and from 2010 to 2011.
|
Estimated Total Useful Life
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2011 Calculations
| Ratio |
Description |
The company |
| Estimated total useful life |
Over longer time periods, this ratio is a useful measure of company's depreciation policy and can be used for comparisons with competitors. |
Medco Health Solutions Inc.'s estimated total useful life of depreciable property, plant and equipment increased from 2009 to 2010 but then declined significantly from 2010 to 2011.
|
Estimated Age, Time Elapsed Since Purchase
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2011 Calculations
| Ratio |
Description |
The company |
| Estimated time elapsed since purchase |
The approximate age in years of a company's fixed assets. Useful for comparison purposes. |
Medco Health Solutions Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2009 to 2010 and from 2010 to 2011.
|
Estimated Remaining Life
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2011 Calculations
| Ratio |
Description |
The company |
| Estimated remaining life |
|
Medco Health Solutions Inc.'s estimated remaining life of depreciable property, plant and equipment increased from 2009 to 2010 but then slightly declined from 2010 to 2011.
|
This company is transferred to the archive: financial data is no longer updated!