Stock Analysis on Net
Stock Analysis on Net

Time Warner Inc. (NYSE:TWX)

This company has been moved to the archive! The financial data has not been updated since April 26, 2018.

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Time Warner Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Land 269 268 273 274 506
Buildings and improvements 1,757 1,641 1,619 1,549 2,918
Capitalized software costs 2,045 2,029 1,958 1,868 1,990
Construction in progress 380 183 174 223 339
Furniture, fixtures and other equipment, excludes construction in progress 2,846 2,834 2,895 2,879 3,261
Property, plant and equipment, gross 7,297 6,955 6,919 6,793 9,014
Accumulated depreciation (4,590) (4,445) (4,323) (4,138) (5,189)
Property, plant and equipment, net 2,707 2,510 2,596 2,655 3,825

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

Item Description The company
Property, plant and equipment, gross 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. Time Warner Inc. property, plant and equipment, gross increased from 2015 to 2016 and from 2016 to 2017.
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. Time Warner Inc. property, plant and equipment, net decreased from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

Asset Age Ratios (Summary)

Time Warner Inc., asset age ratios

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Average age ratio 65.31% 66.47% 65.05% 63.48% 60.99%
Estimated total useful life (years) 14 14 14 12 13
Estimated age, time elapsed since purchase (years) 9 9 9 8 8
Estimated remaining life (years) 5 5 5 4 5

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

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. Time Warner Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.
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. Time Warner Inc. estimated total useful life of depreciable property, plant and equipment increased from 2015 to 2016 and from 2016 to 2017.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Time Warner Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.
Estimated remaining life Time Warner Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

Average Age

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (US$ in millions)
Accumulated depreciation 4,590 4,445 4,323 4,138 5,189
Property, plant and equipment, gross 7,297 6,955 6,919 6,793 9,014
Land 269 268 273 274 506
Asset Age Ratio
Average age1 65.31% 66.47% 65.05% 63.48% 60.99%

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

2017 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × 4,590 ÷ (7,297 – 269) = 65.31%

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. Time Warner Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross 7,297 6,955 6,919 6,793 9,014
Land 269 268 273 274 506
Depreciation of property, plant and equipment 497 479 492 531 635
Asset Age Ratio (Years)
Estimated total useful life1 14 14 14 12 13

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

2017 Calculations

1 Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation of property, plant and equipment
= (7,297 – 269) ÷ 497 = 14

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. Time Warner Inc. estimated total useful life of depreciable property, plant and equipment increased from 2015 to 2016 and from 2016 to 2017.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (US$ in millions)
Accumulated depreciation 4,590 4,445 4,323 4,138 5,189
Depreciation of property, plant and equipment 497 479 492 531 635
Asset Age Ratio (Years)
Time elapsed since purchase1 9 9 9 8 8

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

2017 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation of property, plant and equipment
= 4,590 ÷ 497 = 9

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. Time Warner Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 2,707 2,510 2,596 2,655 3,825
Land 269 268 273 274 506
Depreciation of property, plant and equipment 497 479 492 531 635
Asset Age Ratio (Years)
Estimated remaining life1 5 5 5 4 5

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

2017 Calculations

1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation of property, plant and equipment
= (2,707 – 269) ÷ 497 = 5

Asset age ratio Description The company
Estimated remaining life Time Warner Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.