eBay Inc., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Computer equipment and software	4,933)	4,609)	4,214)	3,894)	6,073)
Land and buildings, including building improvements	713)	620)	619)	591)	943)
Leasehold improvements	399)	370)	334)	305)	549)
Furniture and fixtures	169)	169)	157)	157)	350)
Construction in progress and other	130)	239)	160)	131)	331)
Property and equipment, gross	6,344)	6,007)	5,484)	5,078)	8,246)
Accumulated depreciation	(4,747)	(4,410)	(3,968)	(3,524)	(5,344)
Property and equipment, net	1,597)	1,597)	1,516)	1,554)	2,902)

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Item	Description	The company
Property and equipment, gross	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	eBay Inc. property and equipment, gross increased from 2016 to 2017 and from 2017 to 2018.
Property and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.

eBay Inc., asset age ratios

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Average age ratio	74.83%	73.41%	72.36%	69.40%	64.81%
Estimated total useful life (years)	10	10	9	8	7
Estimated age, time elapsed since purchase (years)	8	7	7	6	5
Estimated remaining life (years)	3	3	3	3	3

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Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	eBay Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	eBay Inc. estimated total useful life of depreciable property, plant and equipment increased from 2016 to 2017 and from 2017 to 2018.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	eBay Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.
Estimated remaining life		eBay Inc. estimated remaining life of depreciable property, plant and equipment increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in millions)
Accumulated depreciation	4,747)	4,410)	3,968)	3,524)	5,344)
Property and equipment, gross	6,344)	6,007)	5,484)	5,078)	8,246)
Asset Age Ratio
Average age¹	74.83%	73.41%	72.36%	69.40%	64.81%

2018 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ Property and equipment, gross
= 100 × 4,747 ÷ 6,344 = 74.83%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	eBay Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in millions)
Property and equipment, gross	6,344)	6,007)	5,484)	5,078)	8,246)
Depreciation expense on property and equipment	626)	612)	605)	614)	1,100)
Asset Age Ratio (Years)
Estimated total useful life¹	10	10	9	8	7

2018 Calculations

¹ Estimated total useful life = Property and equipment, gross ÷ Depreciation expense on property and equipment
= 6,344 ÷ 626 = 10

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	eBay Inc. estimated total useful life of depreciable property, plant and equipment increased from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in millions)
Accumulated depreciation	4,747)	4,410)	3,968)	3,524)	5,344)
Depreciation expense on property and equipment	626)	612)	605)	614)	1,100)
Asset Age Ratio (Years)
Time elapsed since purchase¹	8	7	7	6	5

2018 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense on property and equipment
= 4,747 ÷ 626 = 8

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	eBay Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in millions)
Property and equipment, net	1,597)	1,597)	1,516)	1,554)	2,902)
Depreciation expense on property and equipment	626)	612)	605)	614)	1,100)
Asset Age Ratio (Years)
Estimated remaining life¹	3	3	3	3	3

2018 Calculations

¹ Estimated remaining life = Property and equipment, net ÷ Depreciation expense on property and equipment
= 1,597 ÷ 626 = 3

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Asset age ratio	Description	The company
Estimated remaining life		eBay Inc. estimated remaining life of depreciable property, plant and equipment increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.

eBay Inc. (NASDAQ:EBAY)

Analysis of Property, Plant and Equipment