The cost of GE manufacturing plant and equipment is depreciated over its estimated economic life. U.S. assets are depreciated using an accelerated method based on a sum-of-the-years digits formula; non-U.S. assets are generally depreciated on a straight-line basis.
Source: General Electric Co., Annual Report
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General Electric Co., Statement of Financial Position, Property, Plant and Equipment
USD $ in millions
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | ||
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Land and improvements | |
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Buildings, structures and related equipment | |
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Machinery and equipment | |
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Leasehold costs and manufacturing plant under construction | |
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Property, plant and equipment, original cost | |
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Accumulated depreciation | |
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Property, plant and equipment, net carrying value | |
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Source: Based on data from General Electric Co. Annual Reports
| Item | Description | The company |
|---|---|---|
| Land and improvements | Real estate assets held for productive use and depreciable assets that are an addition or improvement to real estate held for productive use. | General Electric Co.'s land and improvements increased from 2009 to 2010 and from 2010 to 2011. |
| Buildings, structures and related equipment | Carrying amount as of the balance sheet date of long-lived, depreciable assets that include building structures held for productive use including any addition, improvement, or renovation to the structure, such as interior masonry, interior flooring, electrical, and plumbing. | General Electric Co.'s buildings, structures and related equipment declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level. |
| Machinery and equipment | Carrying amount as of the balance sheet date of long-lived, depreciable asset used in production process to produce goods and services. | General Electric Co.'s machinery and equipment increased from 2009 to 2010 and from 2010 to 2011. |
| Leasehold costs and manufacturing plant under construction | Carrying amount at the balance sheet date of long-lived asset under construction that include construction costs to date on capital projects that have not been completed and assets being constructed that are not ready to be placed into service. | General Electric Co.'s leasehold costs and manufacturing plant under construction increased from 2009 to 2010 and from 2010 to 2011. |
| Property, plant and equipment, original cost | Carrying amount at the balance sheet date for long-lived physical assets used in the normal conduct of business and not intended for resale. This can include land, physical structures, machinery, vehicles, furniture, computer equipment, construction in progress, and similar items. Amount does not include depreciation. | General Electric Co.'s property, plant and equipment, original cost increased from 2009 to 2010 and from 2010 to 2011. |
| Property, plant and equipment, net carrying value | Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. | General Electric Co.'s property, plant and equipment, net carrying value declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level. |
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General Electric Co., Property, Plant and Equipment Ratios
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | ||
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Average age | % |
% |
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| 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's fixed asset base is old or new. Newer assets are likely to be more efficient. | General Electric Co.'s average age of depreciable property, plant and equipment deteriorated from 2009 to 2010 but then improved from 2010 to 2011 exceeding 2009 level. |
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| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
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Accumulated depreciation | |
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Property, plant and equipment, original cost | |
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Land and improvements | |
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| Ratio | ||||||
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Average age1 | % |
% |
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2011 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, original cost – Land and improvements)
= 100 × ÷ ( – ) = %
| 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's fixed asset base is old or new. Newer assets are likely to be more efficient. | General Electric Co.'s average age of depreciable property, plant and equipment deteriorated from 2009 to 2010 but then improved from 2010 to 2011 exceeding 2009 level. |
May 23, 2012