Capital expenditure
Business Concept
UPDATE 1-Dycom Q1 profit falls 67 pct, sees weak Q2...loss per share for the second quarter as revenue is expected to be down sequentially, reflecting seasonal patterns and slowing capital expenditures by a key customer. Analysts on average were expecting earnings of 5 cents a share,... In this article: Revenue, AT&T Inc, Capital expenditure, New York Stock Exchange, Comcast Corp, Verizon Communications Inc, and U.S. |
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Reuters | 9 hours ago
FACTBOX-Mexico's debt downgrade could hit major companies
...but to absorb the higher borrowing costs that will come with the downgrade as its crushing tax burden forces it to fund virtually all of its capital expenditures with debt. *TELMEX <TELMEXL.MX> <TMX.N> Mexico's incumbent fixed-line...
In this article: Mexico, Pemex, Balance sheet, Cemex, America Movil, Revenue, Walmex, Carlos Slim, Fitch Ratings, and Telmex
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India's Reliance jumps on hopes of Lyondell bargain
...has no major projects lined up to use up about $20 billion of excess cashflow between the 2011 and 2014 financial years after its committed capital expenditure. M&A RETURN Luxembough-based LyondellBasell filed for protection in January,...
In this article: Reliance Industries, LyondellBasell, Mukesh Ambani, Access Industries, Revenue, Corus, BASF, and India
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Heritage sells fields to Eni, ends Genel talks
...the companies said in statements. Heritage said it expected to complete the sale in the first quarter of 2010. The acquisition and the capital expenditure it commits Eni to will place an additional burden on the company, which is...
In this article: Eni, Saipem, Morgan Stanley, Lake Albert, Kurdistan, Revenue, Heritage Oil, and Burren Energy
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Telegraph.co.uk - Business | 2 days ago
Ofwat must hold water companies to account
...Ofwat's "final determination" on the prices the UK's water utilities can charge customers and the limits on operational expenditure and capital expenditure. Expect some grumbling from the companies themselves as they claim that the...
In this article: Valuation Office, Bad debt, Revenue, and Recession
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Volkswagen to invest 19.9 bln eur in 2010 to 2012
Volkswagen <VOWG.DE> plans automotive capital expenditure of around 19.9 billion euros ($29.55 billion) in the coming three years, half of it in Germany alone, Europe's largest carmaker said on Friday. For the period of 2010 to 2012, it...
In this article: Volkswagen, Joint venture, Europe, and Germany
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BOJ to hold rates, stick to brighter view than govt
...starting to improve, and may even upgrade its view to reflect relatively strong third-quarter GDP growth and a surprise rebound in capital expenditure in the period. [ID:nLG308196] Eager to avoid escalating tensions with the government, the...
In this article: BOJ, Recession, Deflation, Japan, Masaaki Shirakawa, Organisation for Economic Cooperation and Development, and Paris
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washingtonpost.com | 4 days ago
Marathon cuts 2010 capex by $1B, shares fall 4 pct
NEW YORK -- Marathon Oil will cut capital expenditures by about $1 billion in 2010, the company said Thursday, with a larger percentage of funds going toward exploration and production and a smaller percentage toward its hard-hit refining...
In this article: Marathon Oil Corp., Dow Jones Industrial Average, ConocoPhillips, NEW YORK, Jet fuel, Natural gas, U.S., and North America
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UPDATE 1-Marathon Oil sees smaller budget in 2010
In this article: Marathon Oil Corp, Natural gas, New York Stock Exchange, Houston, New York, and North Dakota
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Sydney Morning Herald - Business | 5 days ago
Resource projects dig us out of a hole
AUSTRALIA'S economic growth is expected to track well above long-term trends, buoyed by record capital expenditure in resources projects. The Westpac-Melbourne Institute leading index, which measures the pace of economic activity three to...
In this article: Westpac, Liquefied natural gas, Recession, Bernard Madoff, and Australia
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The Troy Messenger | 6 days ago
PCS freezes capital expenditures
In an effort to cut back on spending, Pike County Schools will freeze all capital expenditures for the current fiscal year. This comes after a 7.5 percent state-declared proration.. Superintendent Mark Bazzell said the system took a...
In this article: Fiscal year, Goshen High School, Florida State University, Motorola, and Bob Riley
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More on Capital expenditure
Description from Wikipedia:
Capital expenditures (CAPEX or capex) are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life that extends beyond the taxable year. Capex are used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings. In accounting, a capital expenditure is added to an asset account ("capitalized"), thus increasing the asset's basis (the cost or value of an asset as adjusted for tax purposes). Capex is commonly found on the Cash Flow Statement as "Investment in Plant Property and Equipment" or something similar in the Investing subsection.
For tax purposes, capital expenditures are costs that cannot be deducted in the year in which they are paid or incurred, and must be capitalized. The general rule is that if the property acquired has a useful life longer than the taxable year, the cost must be capitalized. The capital expenditure costs are then amortized or depreciated over the life of the asset in question. As stated above, capital expenditures create or add basis to the asset or property, which once adjusted, will determine tax liability in the event of sale or transfer. In the US, Internal Revenue Code ยงยง263 and 263A deal extensively with capitalization requirements and exceptions.
Included in capital expenditures are amounts spent on:
# acquiring fixed assets
# fixing problems with an asset that existed prior to acquisition
# preparing an asset to be used in business
# legal costs of establishing or maintaining one's right of ownership in a piece of property
# restoring property or adapting it to a new or different use
# starting a new business
The counterpart of capital expenditure is operational expenditure ("OpEx").
Explore everything named Capital expenditure...
