Fortinet (FTNT), a cybersecurity firm, says the completion of a second building on its campus headquarters prompted it to reevaluate the useful life estimates of the company’s property and equipment. In its latest 10-Q, Fortinet revealed it is extending the useful life estimates for two types of assets:

1) Buildings and improvements now have useful life estimates of two to 40 years,up from 30 years
2) Furniture and fixtures now have useful life estimates of 3-8 years, up from 3-5 years

We estimate the change will add $5.31 million to Fortinet’s annual operating income, or 0.99% of the company’s 2020 operating income.