What is the range of estimated service lives for leasehold improvements used for consolidated financial reporting purposes at Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives. Leasehold improvements are primarily amortized over the shorter of the service lives of the improvements or the lease term. The straight-line method of depreciation is followed for financial reporting purposes, but accelerated methods are used for income tax purposes. The estimated service lives used for consolidated financial reporting purposes are as follows:
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company depreciates assets over their estimated service lives. Leasehold improvements are amortized over the shorter of the service life of the improvement or the lease term. The company uses the straight-line method for financial reporting, but accelerated methods are used for income tax purposes. The FDD states that the estimated service lives used for consolidated financial reporting purposes are as follows, but does not specify the estimated service lives.