Hubbell Policies

of an asset, the incremental cost should be depreciated over the remaining life of the asset. If a capital investment can be segregated from the original asset, it should be depreciated over its own life span.

Assets purchased other than new should be depreciated over the estimated remaining economic useful life not to exceed the minimum life assigned to new assets within the same classification.

ADMINISTRATION

Roles and Responsibilities. Business unit controllers have responsibility in overseeing compliance with this policy.

Monitoring, Evaluation and Review.

1) Internal Audit reviews are preformed periodically at the discretion of the local, platform, or Corporate management. 2) SOX key controls relevant to PPE are reviewed and tested bi-annually. 3) PPE general ledger accounts are reviewed and reconciled at each period-end close. 4) Business process / financial performance reviews conducted at each period-end close. Exceptions. If the required useful lives in the chart above are not reflective of the actual useful life of the asset (i.e. Asset will have LOWER useful life), business can indicate why a lower useful life should be used at time asset is capitalized. No prior approval is needed from Corporate Controller for using a lower useful life. However, if business wants to use a HIGHER useful life than those presented in the chart, a written request must be submitted to the Corporate Controller that contains a compelling business reason for the exception. Exceptions granted by the Corporate Controller must be retained by the business unit as supporting documentation.

ACCOUNTING AND DISCLOSURE

None

REPORTING

None

DEFINITIONS

Property, Plant and Equipment shall mean includes all expenditures for real and personal property directly related to the acquisition or construction of, and the preparations for its intended use.

Book purposes shall mean in accordance with United States Generally Accepted Accounting Principles (GAAP).

Salvage value shall mean estimated value assigned of an asset at the end of its useful life.

RELATED DOCUMENTS (Policies, Guidelines, Standards)

• FIN-36 Property, Plant and Equipment Policy • FIN-07 Capitalization of Property, Plant and Equipment Policy • FIN-11 Construction in Process (CIP) Policy • FIN-03 Asset impairment Policy • FIN-04 Authority for Expenditure (AFE) Policy • FIN-26 Goodwill and Intangible Asset Policy • FIN-08 Capitalized Software Policy

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