Stock Analysis on Net
Stock Analysis on Net

GlaxoSmithKline PLC (NYSE:GSK)

This company has been moved to the archive! The financial data has not been updated since February 27, 2015.

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

GlaxoSmithKline PLC, balance sheet: property, plant and equipment

US$ in millions, translated from GBP £

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Land and buildings 10,721 10,691 10,538 9,654 9,263
Plant, equipment and vehicles 16,117 15,636 16,105 15,454 15,550
Assets in construction 5,055 4,067 3,056 3,148 3,343
Property, plant and equipment, cost 31,893 30,394 29,699 28,255 28,156
Accumulated depreciation (16,605) (15,691) (15,427) (14,663) (14,234)
Property, plant and equipment, net book value 15,288 14,703 14,272 13,592 13,922

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

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. GlaxoSmithKline PLC property, plant and equipment, cost increased from 2012 to 2013 and from 2013 to 2014.
Property, plant and equipment, net book value 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. GlaxoSmithKline PLC property, plant and equipment, net book value increased from 2012 to 2013 and from 2013 to 2014.

Asset Age Ratios (Summary)

GlaxoSmithKline PLC, asset age ratios

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Average age ratio 52.07% 51.62% 51.94% 51.89% 50.55%
Estimated total useful life (years) 24 25 21 20 16
Estimated age, time elapsed since purchase (years) 13 13 11 11 8
Estimated remaining life (years) 12 12 10 10 8

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

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

Average Age

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in millions, translated from GBP £)
Accumulated depreciation 16,605 15,691 15,427 14,663 14,234
Property, plant and equipment, cost 31,893 30,394 29,699 28,255 28,156
Asset Age Ratio
Average age1 52.07% 51.62% 51.94% 51.89% 50.55%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Average age = 100 × Accumulated depreciation ÷ Property, plant and equipment, cost
= 100 × 16,605 ÷ 31,893 = 52.07%

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. GlaxoSmithKline PLC average age ratio of depreciable property, plant and equipment improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in millions, translated from GBP £)
Property, plant and equipment, cost 31,893 30,394 29,699 28,255 28,156
Depreciation of property, plant and equipment 1,317 1,213 1,416 1,388 1,764
Asset Age Ratio (Years)
Estimated total useful life1 24 25 21 20 16

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Estimated total useful life = Property, plant and equipment, cost ÷ Depreciation of property, plant and equipment
= 31,893 ÷ 1,317 = 24

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

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in millions, translated from GBP £)
Accumulated depreciation 16,605 15,691 15,427 14,663 14,234
Depreciation of property, plant and equipment 1,317 1,213 1,416 1,388 1,764
Asset Age Ratio (Years)
Time elapsed since purchase1 13 13 11 11 8

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation of property, plant and equipment
= 16,605 ÷ 1,317 = 13

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

Estimated Remaining Life

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in millions, translated from GBP £)
Property, plant and equipment, net book value 15,288 14,703 14,272 13,592 13,922
Depreciation of property, plant and equipment 1,317 1,213 1,416 1,388 1,764
Asset Age Ratio (Years)
Estimated remaining life1 12 12 10 10 8

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Estimated remaining life = Property, plant and equipment, net book value ÷ Depreciation of property, plant and equipment
= 15,288 ÷ 1,317 = 12

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