What types of PP&E does Dominoshave on its balance sheet?

Dominos (DPZ) recently made the news when it launched its pizza delivery vehicle, the Dominos DXP (Delivery Expert). The DXP is a modified Chevy Spark electric automobile. At the October 2015 launch, there were 97 DXP in Dominos nationwide fleet, with more to come.

Dominos has several categories of Property, Plant and Equipment (PP&E) on its balance sheet. See the excerpts on the following pages from Dominos 2014 Form 10-K and a related note for additional details about its PP&E.

Questions

1. What categories of PP&E does Dominos have on its balance sheet? Give examples of assets that might be found in each of these PP&E categories. Where are the DXP vehicles likely to be categorized?

2. What is the largest category of PP&E on Dominos balance sheet? Does this make sense to you? Why or why not?

3. What depreciation method(s) does Dominos use for its PP&E?

4. Over how many years does Dominos 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 2014. What can you, in general, say about the age of the total portfolio of PP&E at Dominos?

December 29 M 5 14333 195.77 10:31 182) 10.17 10710 to 501201003 Page 40 of Domino's 2014 Form 10-K, Consolidated Balance Sheets DOMINOS PIZZA NC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS o show, except are and pershare aman) December ASSETS CURRENT ASSETS Cash and cashqari 30.055 Restricted cash and cashevala 120.954 118.395 3794 Notes recevable. set of reserves of $534 2014 and 5357 a 2013 1.996 Prepaid expenses 10:57 Advertising food tected 72,055 Defindet As held for sale PROPERTY, PLANT AND EQUIPMENT Landbrugs 25.50 Leasheld doet prover 99.804 Expl 178378 Cop 41 310,220 Accumulated depreciation and (195.1945 Property, plast med equipment 114.046 OTHER ASSETS Lavende sticted 4.586 Not Receivable des content portion set of Defined income of seculated Gallerina od 17.01.2018 11.20 2013 22:47 16.297 Caperlund software med i of 554.552 in 2014 and 550.267 2013 20.562 Other sets, set of accesorii of 5776 2014 and 54.737.2013 10.000 Deco 2.495 351.54 23.425 90.50 11.00 8.900 297498 97.584 3.30 194 16,595 14464 9,046 3.167 Tools 76.73 76.131 Total 5619,290 3525.255 Page 40 of Domino's 2014 Form 10-K, Consolidated Balance Sheets Zoomed view of PP&E from balance sheet December 28 2014 December 29 2013 PROPERTY, PLANT AND EQUIPMENT: Land and buildings Leasehold and other improvements Equipment Construction in progress 25.859 99.804 178,378 6.179 23.423 90.508 174,667 8.900 310.220 (196.174) 297.498 (199.914) Accumulated depreciation and amortization Property, plant and equipment, net 114.046 97,584 Page 40 of Domino's 2014 Form 10-K, Consolidated Balance Sheets Zoomed view of PP&E from balance sheet December 28 December 29. 2014 2013 PROPERTY, PLANT AND EQUIPMENT: Land and buildings 25.859 23.423 Leasehold and other improvements 99.804 90,508 Equipment 178.378 174,667 Construction in progress 6.179 8.900 310,220 297.498 Accumulated depreciation and amortization (196,174) (199.914) Property, plant and equipment, net 114.046 97,584 Page 47 of Domino's 2014 Form 10-K, Notes to Consolidated Financial Statements 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 is provided using the straight-line method over the estuated useful lives of the related assets. Estimated useful lives, other than the estimated useful life of the capital lease assets as described below are generally as follows (in years): Buildings 20 Leasehold and other improvements 7-15 Equipment 3-15 Included in land and buildings as of December 28, 2014 and December 29, 2013 are capital lease assets of approximately $1.5 million and $1.9 million, which are net of $5.9 million and $55 million of accumulated amortization, respectively, primarily related to the lease of a supply chain center building, and to a lesser extent, leases of computer equipment . The capital lease assets are being amortized using the straight-line method over the lease terms Depreciation and amortization expense of property.plant and equpment was approximately 528.4 million $20.5 million and $19.5 million in 2014, 2013 and 2012, respectively