There are generally a series of notes that provide additional information on various accounts reported in the financial statements. The information presented in these notes can be valuable for analysis purposes.
Inventories
Here, inventories, net of allowances, valued as indicated under Significant Accounting Policies, are broken down into finished products, work in progress, by-products, raw materials, supplies, and merchandise in transit. Inventories may be reported by location, by type of product or according to other applicable criteria.
Property, Plant and Equipment
This note provides a detailed breakdown of the principal assets included in the general classification, including land, buildings and infrastructure, remodeling, machinery and equipment, vehicles, furniture and fixtures, and any other applicable category. The accumulated depreciation associated with each class of assets would also be reported. If there are leased assets, they would normally be reported at the present value of future payments, including the purchase option, discounted at the interest rate defined in the corresponding contract.
Accrued Expenses
Here, a breakdown would be shown of accrued utilities, taxes, bonuses, commissions, profit-sharing, other employee benefits, employee vacations, severance pay, and others.
Long-term Debt
This note would include a breakdown by type of debt (first mortgages, convertible subordinated debentures, unsecured notes payable, borrowings under financing agreements), showing interest rates, amortization or sinking fund requirements, maturity dates, debt collateralized and assets pledged, and any financial restrictive covenants such as restrictions on working capital, acquisition of treasury stock, and payment of cash dividends.