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

Emerson Electric Co., balance sheet: property, plant and equipment

US$ in millions

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Land	336)	316)	295)	210)	251)	275)
Buildings	2,219)	2,145)	2,043)	1,867)	2,254)	2,355)
Machinery and equipment	5,645)	5,470)	5,175)	4,932)	6,011)	6,353)
Construction in progress	471)	439)	360)	318)	415)	428)
Property, plant and equipment, at cost	8,671)	8,370)	7,873)	7,327)	8,931)	9,411)
Accumulated depreciation	(5,029)	(4,808)	(4,552)	(4,396)	(5,346)	(5,609)
Property, plant and equipment, net	3,642)	3,562)	3,321)	2,931)	3,585)	3,802)

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

Download chart

Item	Description	The company
Property, plant and equipment, at 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.	Emerson Electric Co. property, plant and equipment, at cost increased from 2017 to 2018 and from 2018 to 2019.
Property, plant 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.	Emerson Electric Co. property, plant and equipment, net increased from 2017 to 2018 and from 2018 to 2019.

Emerson Electric Co., asset age ratios

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Average age ratio	60.34%	59.70%	60.07%	61.77%	61.59%	61.39%
Estimated total useful life (years)	18	18	18	18	17	18
Estimated age, time elapsed since purchase (years)	11	11	11	11	11	11
Estimated remaining life (years)	7	7	7	7	7	7

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

Download chart

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.	Emerson Electric Co. average age ratio of depreciable property, plant and equipment improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
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.	Emerson Electric Co. estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Emerson Electric Co. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Estimated remaining life		Emerson Electric Co. estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Selected Financial Data (US$ in millions)
Accumulated depreciation	5,029)	4,808)	4,552)	4,396)	5,346)	5,609)
Property, plant and equipment, at cost	8,671)	8,370)	7,873)	7,327)	8,931)	9,411)
Land	336)	316)	295)	210)	251)	275)
Asset Age Ratio
Average age¹	60.34%	59.70%	60.07%	61.77%	61.59%	61.39%

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

2019 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, at cost – Land)
= 100 × 5,029 ÷ (8,671 – 336) = 60.34%

Download chart

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.	Emerson Electric Co. average age ratio of depreciable property, plant and equipment improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Selected Financial Data (US$ in millions)
Property, plant and equipment, at cost	8,671)	8,370)	7,873)	7,327)	8,931)	9,411)
Land	336)	316)	295)	210)	251)	275)
Depreciation expense	463)	444)	414)	391)	507)	518)
Asset Age Ratio (Years)
Estimated total useful life¹	18	18	18	18	17	18

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

2019 Calculations

¹ Estimated total useful life = (Property, plant and equipment, at cost – Land) ÷ Depreciation expense
= (8,671 – 336) ÷ 463 = 18

Download chart

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.	Emerson Electric Co. estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Selected Financial Data (US$ in millions)
Accumulated depreciation	5,029)	4,808)	4,552)	4,396)	5,346)	5,609)
Depreciation expense	463)	444)	414)	391)	507)	518)
Asset Age Ratio (Years)
Time elapsed since purchase¹	11	11	11	11	11	11

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

2019 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 5,029 ÷ 463 = 11

Download chart

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.	Emerson Electric Co. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Selected Financial Data (US$ in millions)
Property, plant and equipment, net	3,642)	3,562)	3,321)	2,931)	3,585)	3,802)
Land	336)	316)	295)	210)	251)	275)
Depreciation expense	463)	444)	414)	391)	507)	518)
Asset Age Ratio (Years)
Estimated remaining life¹	7	7	7	7	7	7

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

2019 Calculations

¹ Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= (3,642 – 336) ÷ 463 = 7

Download chart

Asset age ratio	Description	The company
Estimated remaining life		Emerson Electric Co. estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Emerson Electric Co. (NYSE:EMR)

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