capital expenditure

(redirected from Capital costs)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

Capital Expenditure

Payments made in cash or cash equivalents over a period of more than one year. Capital expenditures are used to acquire assets or improve the useful life of existing assets. An example of a capital expenditure is the funding to construct a factory. In accounting, capital expenditures must be capitalized; that is, the expenditure is recognized on a balance sheet gradually over the course of an asset's useful life. Capital expenditures are recorded as liabilities on a balance sheet. They are also called capital outlays. See also: Capital asset.

capital expenditure

Funds used to acquire a long-term asset. A capital expenditure results in depreciation deductions over the life of the acquired asset. Also called capital outlay.

capital expenditure

expenditure on the acquisition or improvement of FIXED ASSETS that is subsequently written off against profits over several ACCOUNTING PERIODS. Contrast with REVENUE EXPENDITURE. See INVESTMENT, CAPITAL BUDGETING.

capital expenditure

see INVESTMENT.

capital expenditure

Money spent on capital improvements,being those that change the nature of property, extend its useful life, or otherwise improve it beyond the natural improvement to be expected with routine repairs and maintenance.This is an important concept because capital expenditures must be added to the basis and depreciated slowly over time,while noncapital expenditures for repairs may be deducted entirely in the current year on one's taxes.

Capital Expenditure

An expenditure made for an asset with a useful life of more than one year that increases the value of or extends the useful life of the asset. Capital expenditures generally may not be deducted in the year they are paid, even if they are paid in connection with a trade or business. In other words, they are capitalized and generally may be depreciated or amortized.
References in periodicals archive ?
The top 5 percent of hospitals had capital costs greater than $1,102, which is 27 percent of the mean operating cost but only 16 percent of the 95th percentile operating cost ($6,890).
The low capital cost of the GE electrolyzer would make it competitive with other hydrogen production methods such as natural gas reforming.
Assuming that the space can be upgraded to the existing tenant's requirements at a lower cost than would be required for a new tenant's build-out, and that the tenant can forego some or all of the rent abatement period, the market rent can be adjusted to reflect the landlord's savings in these capital costs if, for example, the market rent includes a $30 per-square-foot contribution toward construction and the tenant requires only $12 per square foot in renovations, the landlord's outlay is reduced by $18 per square foot.
That "saved" energy is then sold to other customers at a rate that offsets the capital costs of the project.
This month's distribution increased from the prior month due primarily to increased gas production, and lower capital costs.
The agency directly benefits from its high water quality, which significantly limits its ongoing and capital costs related to purification systems.
0% on approximately 80% of the capital costs is not included in the current or previous capital cost estimates as it is expected to be exonerated and/or recovered pursuant to Venezuelan tax regulations.
This month's distribution decreased from the prior month due primarily to lower gas pricing, a decrease in gas production, and significantly increased capital costs.
THE AMOUNT OF THE ACCRETION TO HPT'S CASH FLOW WHICH HPT MAY REALIZE FROM THIS INVESTMENT WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE FUTURE FINANCIAL OPERATING RESULTS REALIZED AT THIS HOTEL BY IHG'S MANAGEMENT, HPT'S FUTURE CAPITAL COSTS INCURRED TO FUND THIS TRANSACTION AND OTHERS.
The governor has since proposed an alternative plan, funded by the state's gross receipts tax, which would reduce but likely not eliminate future capital costs supported by lottery bonds.
the company anticipates incurring significant capital costs to lease some of its vacant space and renew existing or expiring leases.

Full browser ?