Depreciation is provided over the estimated useful lives of the assets, principally using the straight-line method. For tax purposes, accelerated tax methods are used. The estimated useful lives primarily range from 10 to 50 years for Buildings, and from 3 to 15 years for Machinery, equipment and office furnishings.
Source: Merck & Co. Inc., Annual Report
You have visited 10 password protected pages for free. Others contain data covered by 
.
Sign Up Now to get full access to whole website and cut out all advertisements.
Merck & Co. Inc., Statement of Financial Position, Property, Plant and Equipment
USD $ in millions
| Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | Dec 31, 2006 | ||
|---|---|---|---|---|---|---|
 |
Land | |
|
|
|
|
|
Buildings | |
|
|
|
|
|
Machinery, equipment and office furnishings | |
|
|
|
|
|
Construction in progress | |
|
|
|
|
|
Property, plant and equipment, at cost | |
|
|
|
|
|
Accumulated depreciation | |
|
|
|
|
|
Property, plant and equipment, allowance for depreciation | |
|
|
|
|
Source: Based on data from Merck & Co. Inc. Annual Reports
| Item | Description | The company |
|---|---|---|
| Land | Carrying amount as of the balance sheet date of real estate held for productive use. This excludes land held for sale. | Merck & Co. Inc.'s land increased from 2008 to 2009 but then slightly declined from 2009 to 2010. |
| Buildings | 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. | Merck & Co. Inc.'s buildings increased from 2008 to 2009 but then slightly declined from 2009 to 2010. |
| Machinery, equipment and office furnishings | Carrying amount as of the balance sheet date of long-lived, depreciable asset used in production process to produce goods and services. | Merck & Co. Inc.'s machinery, equipment and office furnishings increased from 2008 to 2009 but then slightly declined from 2009 to 2010. |
| Construction in progress | 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. | Merck & Co. Inc.'s construction in progress increased from 2008 to 2009 and from 2009 to 2010. |
| Property, plant and equipment, at 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. | Merck & Co. Inc.'s property, plant and equipment, at cost increased from 2008 to 2009 but then slightly declined from 2009 to 2010. |
| Property, plant and equipment, allowance for depreciation | 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. | Merck & Co. Inc.'s property, plant and equipment, allowance for depreciation increased from 2008 to 2009 but then slightly declined from 2009 to 2010. |
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
Merck & Co. Inc., Property, Plant and Equipment Ratios
| Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | Dec 31, 2006 | ||
|---|---|---|---|---|---|---|
|
Average 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's fixed asset base is old or new. Newer assets are likely to be more efficient. | Merck & Co. Inc.'s average age of depreciable property, plant and equipment improved from 2008 to 2009 but then slightly deteriorated from 2009 to 2010. |
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
| Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | Dec 31, 2006 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
|
Accumulated depreciation | |
|
|
|
|
|
Property, plant and equipment, at cost | |
|
|
|
|
|
Land | |
|
|
|
|
| Ratio | ||||||
|
Average age1 | % |
% |
% |
% |
% |
2010 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, at cost – Land)
= 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. | Merck & Co. Inc.'s average age of depreciable property, plant and equipment improved from 2008 to 2009 but then slightly deteriorated from 2009 to 2010. |
February 8, 2012