USA Depreciation expense not included in income statement?

[Ricardo]

Hey, all,

I created an account to these forums so that I could ask this question. I'm doing a comparables analysis for a client, and a few of the comparables I'm looking at are IBM, Northop Grumman (NOC), and Lockheed Martin (LMT). What really confounds me is that these three companies do not include a line item for D&A in the income statements in their annual reports (it's shown only on the balance sheets). However, I found that that the reporting over at the WSJ shows D&A in the income statements reported there for these three companies.

I immediately worry that the net income reported on these three companies is overstated, but their books are all audited and this behavior has been present for at least the past 5 years. There are some slight discrepancies between the WSJ and annual report numbers; what would you all do?

Thanks,
-Ricardo-

 

[Noor Hamed]

i think it may be included under administrative expenses or selling expenses make sure to check information disclosed in these statements regarding details of expenses as if it appears on the balance sheet it must be included in the income statement as a depreciation expense .

 

[kirby]

Have no fear. It is combined with other accounts. You would see that if you used their sec 10ks. I suggest you do so