b'Capital Region Airport Commission NOTES TO FINANCIAL STATEMENTS June 30, 2025 and 2024 Note 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Debt Issuance Costs and Original Issuance Premiums Debt issuance costs are expensed when they are incurred. Original issuance premiums are amortized using the effective interest method and included on the Statements of Net Position as a reduction or addition to long-term debt. Deferred Outflows of Resources In addition to assets, the Statement of Net Position includes a separate section for deferred outflows of resources.Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense) until then. The Commission has multiple items that qualify for reporting in this category. The accounting loss on debt refunding resulted from the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt as a component of interest expense. The other items are comprised of certain items related to pension and other postemployment benefits (OPEB). For more detailed information on these items, reference the related notes.Deferred Inflows of Resources In addition to liabilities, the Statement of Net Position includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s)andsowillnotberecognizedasaninflowofresources(revenue)untilthattime.The Commission has multiple items that qualify for reporting in this category. Certain items related to pension, OPEB, and leases are reported as deferred inflows of resources. For more detailed information on these items, reference the related notes. Capital Assets Capital assets acquired by the Commission, including assets purchased with designated contributions, are recorded at cost (except for intangible right-to-use subscription assets, the measurement of which is discussed in more detail below). Contributed capital assets are recorded at acquisition value at the date of contribution. Depreciation is determined using the straight-line method applied over the following estimated useful lives:Category YearsLand improvements 5-20Buildings 40Paved facilities 20Furniture and fixtures 5-20Machinery and equipment 3-15Subscription assets 1-5The cost of maintenance and repairs is charged to expense as incurred. Expenses, that significantly increase property lives, are capitalized.Capital assets having a cost in excess of $7,500 and a useful life greater than one year are capitalized. 24'