Indianapolis Airport Authority - Indianapolis International Airport

indianapolis Airport AuthorityNotes to Financial StatementsDecember 31, 2010 and 2009Capital AssetsCapital assets are defined by the Authority as assets with an initial, individual cost of more than $2,500.Capital assets purchased by the Authority are stated at historical cost. Depreciation is computed usingthe straight line method over the estimated useful lives of such assets. The estimated lives by generalclassification are as follows:yearsBuildings, including parking garage 20 to 50Sewers 25 to 50Runways, taxiways and aprons 15 to 25Roads, ramps, parking areas, runway and apron lighting, etc. 15 to 20Heavy equipment, furniture and fixtures and fencing 5 to 20Vehicles, office equipment and other 3 to 10Interest incurred during construction periods is capitalized and included in the cost of property andequipment. Maintenance and repairs are expensed as incurred. Environmental mitigation costs incurredto establish wetlands and habitats are capitalized, while costs related to maintaining wetlands and habitatsare generally charged to expense as incurred. Gains and losses on disposition of capital assets areincluded in nonoperating revenues and expenses.Issue CostsBond issue costs are deferred and amortized over the life of the respective bond issue using the interestmethod. Commercial paper issuance costs are being amortized on a straight-line basis over the originalterm of the respective letter of credit that secures each debt issuance.Original Issue DiscountOriginal issue discounts on bonds are amortized using the interest method over the lives of the bonds towhich they relate.Employee Health BenefitsThe Authority offers health benefit plans which provide employees with a choice of coverage under aHealth Savings Account plan or a plan provided by a Preferred Provider Organization.