For finding depreciation and amortization.

We're going to have a look at builder bear.

Builder Bear is an American company that puts together teddy bears.

We're going to have a look at their 10 K.

It's got a bit more detail in it.

Depreciation and amortization are expenses, and so you might expect to see them on the income statement.

Let's go to the financial statements via the contents page, and then after a bit of scrolling, you can see that the financial statements have their own contents page, And here we have the income statement.

Some companies do show depreciation and amortization on the face of the income statement, but builder bear is not doing that.

Depreciation and amortization might be embedded in some of these lines.

For example, if retail stores are depreciating, then you might find that cost of merchandise sold has depreciation in it, whereas back office depreciation of assets might be an sg and a, so you might find it, but it's rarely given as a line item.

One place we can find it is the cashflow statement.

If we scroll down, we'll find that the cashflow statement will be pretty close, and you can see under the adjustments that depreciation and amortization is a positive figure, and that's because, as discussed, the net income will contain costs which are depreciation and amortization, which would've deducted from this figure.

And given that they're non cash costs, we then need to add them back during the cash flow statement to make things right.

This is useful for us because it's almost always here and is a really nice place to look for depreciation and amortization.

Now, it is possible that if we're building a model or we want to look in even more detail, we may want to split out the depreciation from the amortization.

So now we'd be looking for a note.

I've scrolled back to the contents page of the financial statements, and I can see here there's a link to the notes.

I'm hoping that there's a contents page for the notes themselves, but I'm disappointed.

I've done a fair bit of scrolling while I've paused the video, and I've gone down to note six several pages further, and you can see that this is the pp and e note here. They will talk about the pp and e, where it started and where it ended.

You can see that they've also laid out the depreciation expense very specifically.

Now, if you remember very well, or maybe you rewind, you might remember that the cashflow statement depreciation and amortization was 14.8 million or thereabouts.

Now, that means that perhaps for builder bear amortization is effectively immaterial, and so if we went looking for it, we may not find it because the company may not find it worth talking about.

For other companies where amortization is a bigger deal, we would probably find it under the intangible note.