What types of PP&E does Domino’s have on its balance sheet? Original blog posting (November 5, 2015)

Domino’s Launched customized pizza delivery vehicle, Domino’s DXP™ (Delivery Expert) Currently 97 nationwide Modified Chevy Spark Domino’s Several categories of Property, Plant and Equipment (PP&E)

Domino’s Consolidated Balance Sheet (p Domino’s Consolidated Balance Sheet (p. 40 of Form 10-K) as of December 29, 2013 See next slide for enlarged PP&E slide

Domino’s Consolidated Balance Sheet (p Domino’s Consolidated Balance Sheet (p. 40 of Form 10-K) as of December 29, 2013

Domino’s Notes to Consolidated Financial Statements (p Domino’s Notes to Consolidated Financial Statements (p. 47 of Form 10-K) as of December 29, 2013

Question 1 What categories of PP&E does Domino’s have on its balance sheet? Give examples of assets that might be found in each of these PP&E categories. Where are the DXP™ vehicles likely to be categorized?

Question 2 What is the largest category of PP&E on Domino’s balance sheet? Does this make sense to you? Why or why not?

Question 3 What depreciation method(s) does Domino’s use for its PP&E?

Question 4 Over how many years does Domino’s depreciate its various categories of PP&E? Why would it use different lives for different categories?

Question 5 Look at the total balance of Property, Plant and Equipment and the related Accumulated Depreciation account at the end of 2014. What can you, in general, say about the age of the total portfolio of PP&E at Domino’s?

Question Recap What categories of PP&E does Domino’s have on its balance sheet? Give examples of assets that might be found in each of these PP&E categories. Where are the DXP™ vehicles likely to be categorized? What is the largest category of PP&E on Domino’s balance sheet? Does this make sense to you? Why or why not? What depreciation method(s) does Domino’s use for its PP&E? Over how many years does Domino’s depreciate its various categories of PP&E? Why would it use different lives for different categories? Look at the total balance of Property, Plant and Equipment and the related Accumulated Depreciation account at the end of 2014. What can you, in general, say about the age of the total portfolio of PP&E at Domino’s?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu