Laserfiche WebLink
Schmidt Constru~ion • <br />Notes to Divisional Balance Sheet <br />December 31, 1999 <br />Note 1 -Nature of Business and Significant Accounting Policies <br />The divisional balance sheet of Schmidt Construction (the "Division"), a division of <br />Edw. C. Levy Co. (the "Parent"), includes the accoune of the Division az of <br />December 31, 1999. The corporate staff of the Parent company provides the <br />Division with certain executive, administrative, financial, legal and general services <br />performed on a centralized basis. <br />The Division extracts and processes natural aggregates, provides trucking services, <br />manufactures asphalt produce and paves roads, parking loe and other surfaces in <br />and around Colorado Springs, Colorado. <br />Inventories -Inventories are stated at the lower of cost or market. Cost is <br />determined using the first-in, first-out (FIFO) method for substantially all inventory. <br />Property, Plant and Equipment -Property, plant and equipment are recorded at <br />cost. Depreciation in computed using the straight-line method for buildings and the <br />double-declining balance method for other azseu over the estimated useful lives of <br />the azsee. <br />Divisional Equity -Divisional equity is she accumulated earnings of the Division <br />since inception. <br />Self-insurance -The Division and affiliates of the Parent are partially self-insured <br />for workers' compensation. The Division and affiliates of the Parent have obtained <br />specific excess reinsurance coverage for claims in excess of $300,000. The Division <br />is also self-insured for employee health care coverage. The Division haz recorded an <br />accrual of approximately $40,000 at December 31, 1999 for estimated claims <br />incurred but not reported under both of these plans. <br />Use of Estimates -The preparation of a balance sheet in conformity with generally <br />accepted accounting principles requires management to make estimates and <br />assumptions that affect the reported amounts of assess and liabilities and disclosure <br />of contingent azsee and liabilities at the date of the balance sheet. Actual results <br />could differ from those estimates. <br />3 PLATTE ~ MORAN. LLP <br />