Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age
Estimated Total Useful Life
Estimated Age, Time Elapsed Since Purchase
Estimated Remaining Life

Diageo PLC, balance sheet: property, plant and equipment

US$ in millions, translated from GBP £

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Land and buildings	2,251)	2,212)	1,989)	1,698)	1,632)	1,725)
Plant and equipment	5,437)	5,620)	4,529)	3,936)	3,454)	3,525)
Fixtures and fittings	203)	207)	205)	286)	311)	327)
Returnable bottles and crates	806)	827)	664)	625)	540)	—)
Under construction	596)	625)	693)	488)	431)	338)
Property, plant and equipment, cost	9,292)	9,491)	8,079)	7,032)	6,368)	5,914)
Accumulated depreciation	(3,494)	(3,744)	(3,246)	(3,067)	(2,667)	(2,247)
Property, plant and equipment, carrying amount	5,798)	5,747)	4,833)	3,965)	3,700)	3,667)

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

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Item	Description	The company
Property, plant and equipment, cost	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.	Diageo PLC property, plant and equipment, cost increased from 2012 to 2013 but then slightly decreased from 2013 to 2014.
Property, plant and equipment, carrying amount	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.	Diageo PLC property, plant and equipment, carrying amount increased from 2012 to 2013 and from 2013 to 2014.

Diageo PLC, asset age ratios

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Average age ratio	37.60%	39.44%	40.18%	43.61%	41.89%	38.00%
Estimated total useful life (years)	17	20	18	18	16	16
Estimated age, time elapsed since purchase (years)	6	8	7	8	7	6
Estimated remaining life (years)	11	12	11	10	9	10

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

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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.	Diageo PLC average age ratio of depreciable property, plant and equipment improved from 2012 to 2013 and from 2013 to 2014.
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.	Diageo PLC estimated total useful life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Diageo PLC estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.
Estimated remaining life		Diageo PLC estimated remaining life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Selected Financial Data (US$ in millions, translated from GBP £)
Accumulated depreciation	3,494)	3,744)	3,246)	3,067)	2,667)	2,247)
Property, plant and equipment, cost	9,292)	9,491)	8,079)	7,032)	6,368)	5,914)
Asset Age Ratio
Average age¹	37.60%	39.44%	40.18%	43.61%	41.89%	38.00%

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ Property, plant and equipment, cost
= 100 × 3,494 ÷ 9,292 = 37.60%

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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.	Diageo PLC average age ratio of depreciable property, plant and equipment improved from 2012 to 2013 and from 2013 to 2014.

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Selected Financial Data (US$ in millions, translated from GBP £)
Property, plant and equipment, cost	9,292)	9,491)	8,079)	7,032)	6,368)	5,914)
Depreciation charge for the year	544)	482)	441)	398)	394)	361)
Asset Age Ratio (Years)
Estimated total useful life¹	17	20	18	18	16	16

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

¹ Estimated total useful life = Property, plant and equipment, cost ÷ Depreciation charge for the year
= 9,292 ÷ 544 = 17

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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.	Diageo PLC estimated total useful life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Selected Financial Data (US$ in millions, translated from GBP £)
Accumulated depreciation	3,494)	3,744)	3,246)	3,067)	2,667)	2,247)
Depreciation charge for the year	544)	482)	441)	398)	394)	361)
Asset Age Ratio (Years)
Time elapsed since purchase¹	6	8	7	8	7	6

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation charge for the year
= 3,494 ÷ 544 = 6

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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.	Diageo PLC estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Selected Financial Data (US$ in millions, translated from GBP £)
Property, plant and equipment, carrying amount	5,798)	5,747)	4,833)	3,965)	3,700)	3,667)
Depreciation charge for the year	544)	482)	441)	398)	394)	361)
Asset Age Ratio (Years)
Estimated remaining life¹	11	12	11	10	9	10

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

¹ Estimated remaining life = Property, plant and equipment, carrying amount ÷ Depreciation charge for the year
= 5,798 ÷ 544 = 11

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Asset age ratio	Description	The company
Estimated remaining life		Diageo PLC estimated remaining life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.

Diageo PLC (NYSE:DEO)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life