XML 26 R15.htm IDEA: XBRL DOCUMENT v3.3.1.900
Fixed Assets
3 Months Ended
Dec. 26, 2015
Fixed Assets  
Fixed Assets

8.Fixed Assets

 

Fixed assets consisted of the following (in thousands) as of:

 

 

 

Useful Life in Years

 

December 26,
2015

 

September 26,
2015

 

Production equipment

 

1-15

 

$

894,833

 

$

856,235

 

Coffee service equipment

 

3-7

 

42,402

 

51,261

 

Computer equipment and software

 

1-6

 

257,745

 

257,075

 

Land

 

Indefinite

 

13,999

 

14,124

 

Building and building improvements

 

4-30

 

352,679

 

341,514

 

Furniture and fixtures

 

1-15

 

34,994

 

36,254

 

Vehicles

 

4-25

 

28,823

 

11,847

 

Leasehold improvements

 

1-20 or remaining life of lease, whichever is less

 

123,230

 

121,933

 

Assets acquired under capital leases

 

5-15

 

41,987

 

42,003

 

Construction-in-progress

 

 

 

232,987

 

276,743

 

 

 

 

 

 

 

 

 

Total fixed assets

 

 

 

$

2,023,679

 

$

2,008,989

 

Accumulated depreciation and amortization

 

 

 

(759,170

)

(715,426

)

 

 

 

 

 

 

 

 

 

 

 

 

$

1,264,509

 

$

1,293,563

 

 

 

 

 

 

 

 

 

 

 

 

Assets acquired under capital leases, net of accumulated amortization, were $31.3 million and $32.0 million at December 26, 2015 and September 26, 2015, respectively.

 

Total depreciation and amortization expense relating to all fixed assets was $60.6 million and $51.0 million for the thirteen weeks ended December 26, 2015 and December 27, 2014, respectively.

 

In September 2015, the Company decided to discontinue sales of the Keurig® BOLT® brewer and accordingly revised its forecasted unit sales for fiscal year 2016 and beyond and recorded an impairment loss in the fourth quarter.  At the time there were certain assets which the Company planned to repurpose, however upon further review these assets will not be utilized.  Therefore, the Company recorded an impairment loss of $8.3 million in the first quarter of fiscal 2016, which was included in Cost of sales in the accompanying unaudited Consolidated Statements of Operations.  These impairment losses were recorded in the Domestic segment.  The fair value of the Keurig® BOLT®  asset group was determined based upon the discounted cash flow method.