Browning Reserve Group reserve studies use several terms that are unique to our reports. Our specialized systems have been developed to offer flexibility in many areas of our reporting. Please see below for definitions of abbreviations and symbols used in many of our reserve studies.
COMPONENT SPECIFIC TERMS
The following terms are used in the component descriptions to denote special treatments of the component metrics.
NR-1 (Limited Recurrence, 1 Time)
The “Limited Recurrence” treatment signifies that a particular reserve component’s replacement recurs only for a limited number of useful life cycles as opposed to indefinitely. Most often used to display a cost in a specific year only, NR-1 signifies the component’s replacement only occurs one time, and NR-2 means the component’s replacement will only occur for two useful life cycles and so on. This makes it easy to enter one-time (nonrecurring) costs that pop up from time to time or display a replacement that may be unique at only one date.
SE-2 (Spread Evenly over 2 years)
The “Spread Evenly” treatment signifies that a particular component’s replacement is split evenly over two or more consecutive years. For example, a component assigned an SE-2 treatment with an eight-year remaining life will have its replacement split evenly over two consecutive years (half in year 8 and half in year 9). An SE-3 signifies the replacement is split over three consecutive years and so on. The spread treatment repeats during each subsequent useful life cycle, and although the component’s replacements are split evenly over two or more consecutive years, each year’s expense forecast is inflated appropriately according to the study’s set inflation rate.
NSE-2 (Spread Non-Evenly over 2 years)
Unlike the Spread Evenly treatment described above, the “Spread Non-Evenly” treatment is not split equally each year. The split is a percentage of the total replacement for each year in the spread with the total spread percentages always equal to 100%. For example, a component assigned an NSE-2 treatment with 25% and 75% spreads and an eight-year remaining life will have its replacement split non-evenly over two years (quarter in year 8 and three-quarters in year 9). The spread treatment repeats during each subsequent useful life cycle, and although the component’s replacements are split non-evenly over two or more years, each year’s expense forecast is inflated appropriately according to the study’s set inflation rate.
% (Percent to Include)
This signifies that the component is being replaced at less than 100 percent of its replacement cost or quantity. Perhaps a component is replaced partially at each replacement year. Another example would be to do a small portion of the work at each replacement year. Oftentimes wood fencing is replaced over several cycles, and the study will display a percentage of the fence at each replacement cycle.
Delayed Start (Remaining Life Greater than Useful Life)
In many instances a component’s replacement cycle may not begin immediately, so the replacement cycle start is delayed. Delay is accomplished by setting the remaining life greater than the useful life
Zero Remaining Life
Zero remaining life signifies that the component is replaced in the year which the study is prepared. All replacements are reflected in their replacement year, and the year in which the study is prepared is no different than any other year.
UNITS OF MEASURE
All components pose a quantity and corresponding unit of measure (UOM). Depending on where the UOM is located, it may be displayed in either long or abbreviated form as listed here.
|Unit of Measure||Abbreviation||Comment|
|Unit of Measure||UOM|
|Lot||Lt||Planned development lot|
|Squares||Sqrs||1 square = 100 square feet (Roofing)|