American Wood Fibers
General Fixed Asset Guidelines (Capitalization policy) - including long-term leases.

A CAP Ex is required for:

a: Any NEW Plant asset with a cost in excess of $2,500 and a useful life of over 5 years
b: Any NEW Office asset with a cost in excess of $1,500 and a useful life of over 5 years
c: Any NEW Long-term Lease (longer than 1 year)
d Any CHANGE IN SCOPE of a previously approved CAP EX (only if changes the budget by more than 10%)
e: Any REPAIR/REPLACEMENT as follows:

1: Must extend the original life by at least 3 years
2: Must cost more than 25% of the original value
3: Cost must exceed $2,500
4: Must not be expected to recur a second time within the useful life of the asset

CAP Ex approvals are required:

VP Operations	ALL
Ed Owens	ALL Operations, Safety and Trucking
Owen Ward	ALL
Stephen Faehner	ALL over $40,000

 

Other CAP Ex Points:

Any CAP EX over $100,000 will get a tentative approval until budgetary numbers have been confirmed.

Some CAP Ex requests will be approved but may be expensed at the discretion of the CFO.

Asset will be depreciated as follows:

Software 3 Straight-line - no salvage
Used vehicles: 3 to 5
Mobile Equipmen:t 5 to 7
Used Trailers: 7 to 10
Plant Equipment: 5 to 10
Bins: 10 to 15
Silos: 15 to 25
Land Improvements: 5 to 15
Real Estate: 20 to 30