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Each of its planes contains about 40% by value of equipment imported from America.
This package forces the company to make assumptions -- essentially, educated guesses -- as to the comparative value of equipment sales and maintenance contracts.
The distinction is highly significant in dollar terms because changes in technology often lead to severe decreases in the value of equipment over time.
It had a loss of $498 million after $1.2 billion in costs for writing down the value of equipment it will not use.
In its financial report for 1999, the company said that the salvage value of equipment it leases -- $737 million last year -- was rising as a percent of the money owed on the leases (in accounting jargon, the net investment).
Equipment billings, a measure of the value of equipment accepted by customers and booked as revenue, was $1.05 billion in October, up 1percentt above the September level of $1.04 billion and up 18percentt from the $896 million posted a year earlier, the report said.
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For example, if you have used equipment worth $5,000, but the depreciated value of the equipment is only $3,000, you can trade it in for $5,000 to buy new equipment, instead of selling it outright and paying capital gains tax on the $2,000 difference.
The company estimates that the equipment in its center cost $60 million and that the value of the equipment it houses for its customers is $120 million.
The provision had based the calculation of the lease prices on the "efficient replacement cost of existing technology" -- in other words the value of the equipment if it were replaced with new, more efficient and often less expensive equipment, rather than the higher prices the Bells had actually paid for the gear over the years.
The American Civil Liberties Union found that the value of military equipment used by American police departments has risen from $1m in 1990 to nearly $450m in 2013.And that equipment has been used.
Tom McGrath, president of SBC DataComm, would not disclose the value of the equipment SBC planned to buy.
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CEO of Professional Science Editing for Scientists @ prosciediting.com