Pg45 of Domino's 2020 Form 10-K Domino's Pizza, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) What types of PP\&E does Domino's have on its balance sheet? Domino's ( DPZ) recently made the news when it rolled out 'Carside Delivery 2-Minute Guarantee' Domino's has several categories of Property, Plant and Equipment (PP\&E) on its balance sheet. See the excerpts on the following pages from Domino's 2020 Form 10-K and a related note for additional details about its PP\&E. We highly encourage you to download 10-K form from Domios' website's Investor Relation section to dig deeper. Questions : 1. What categories of PP\&E does Domino's have on its balance sheet? Give examples of assets that might be found in each of these PP\&E categories. 2. What is the largest category of PP\&E on Domino's balance sheet? Does this make sense to you? Why or why not? 3. What depreciation method(s) does Domino's use for its PP\&E? 4. Over how many years does Domino's depreciate its various categories of PP\&E? Why would it use different lives for different categories? 5. Look at the total balance of Property, Plant and Equipment and the related Accumulated Depreciation account at the end of 2020. What can you, in general, say about the age of the total portfolio of PP\&E at Domino's? Zoomed view of PP\&E from Balance Sheet Notes on PP\&E from Pg 51 Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost. Repair and maintenance costs are expensed as incurred. Depreciation and amortization expense are provided using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are generally as follows (in years): Depreciation and amortization expense on property, plant and equipment was approximately $42.0 million, \$37.1 million and \$35.0 million in 2020, 2019 and 2018, respectively. Impairments of Long-Lived Assets The Company evaluates the potential impairment of long-lived assets at least annually based on various analyses including the projection of undiscounted cash flows and whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. For Company-owned stores, the Company performs this evaluation on an operating market basis, which the Company has determined to be the lowest level for which identifiable cash flows are largely independent of other cash flows. If the carrying amount of a long-lived asset exceeds the amount of the expected future undiscounted cash flows of that asset, the Company estimates the fair value of the assets. If the carrying amount of the asset exceeds the estimated fair value of the asset, an impairment loss is recognized, and the asset is written down to its estimated fair value. The Company did not record any impairment losses on long-lived assets in 2020, 2019 and 2018. Pg45 of Domino's 2020 Form 10-K Domino's Pizza, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) What types of PP\&E does Domino's have on its balance sheet? Domino's ( DPZ) recently made the news when it rolled out 'Carside Delivery 2-Minute Guarantee' Domino's has several categories of Property, Plant and Equipment (PP\&E) on its balance sheet. See the excerpts on the following pages from Domino's 2020 Form 10-K and a related note for additional details about its PP\&E. We highly encourage you to download 10-K form from Domios' website's Investor Relation section to dig deeper. Questions : 1. What categories of PP\&E does Domino's have on its balance sheet? Give examples of assets that might be found in each of these PP\&E categories. 2. What is the largest category of PP\&E on Domino's balance sheet? Does this make sense to you? Why or why not? 3. What depreciation method(s) does Domino's use for its PP\&E? 4. Over how many years does Domino's depreciate its various categories of PP\&E? Why would it use different lives for different categories? 5. Look at the total balance of Property, Plant and Equipment and the related Accumulated Depreciation account at the end of 2020. What can you, in general, say about the age of the total portfolio of PP\&E at Domino's? Zoomed view of PP\&E from Balance Sheet Notes on PP\&E from Pg 51 Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost. Repair and maintenance costs are expensed as incurred. Depreciation and amortization expense are provided using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are generally as follows (in years): Depreciation and amortization expense on property, plant and equipment was approximately $42.0 million, \$37.1 million and \$35.0 million in 2020, 2019 and 2018, respectively. Impairments of Long-Lived Assets The Company evaluates the potential impairment of long-lived assets at least annually based on various analyses including the projection of undiscounted cash flows and whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. For Company-owned stores, the Company performs this evaluation on an operating market basis, which the Company has determined to be the lowest level for which identifiable cash flows are largely independent of other cash flows. If the carrying amount of a long-lived asset exceeds the amount of the expected future undiscounted cash flows of that asset, the Company estimates the fair value of the assets. If the carrying amount of the asset exceeds the estimated fair value of the asset, an impairment loss is recognized, and the asset is written down to its estimated fair value. The Company did not record any impairment losses on long-lived assets in 2020, 2019 and 2018