Analysis of Property, Plant and Equipment
Property, Plant and Equipment Disclosure
YUM! Brands Inc., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
| 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. | YUM! Brands Inc. property, plant and equipment, gross increased from 2013 to 2014 but then decreased significantly from 2014 to 2015. |
| 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. | YUM! Brands Inc. property, plant and equipment, net increased from 2013 to 2014 but then decreased significantly from 2014 to 2015. |
Asset Age Ratios (Summary)
YUM! Brands Inc., asset age ratios
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
| 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. | YUM! Brands Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015. |
| 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. | YUM! Brands Inc. estimated total useful life of depreciable property, plant and equipment increased from 2013 to 2014 but then decreased significantly from 2014 to 2015. |
| Estimated time elapsed since purchase | The approximate age in years of a company fixed assets. Useful for comparison purposes. | YUM! Brands Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Estimated remaining life | YUM! Brands Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2013 to 2014 and from 2014 to 2015. |
Average Age
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
2015 Calculations
1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, gross – Land)
= 100 × 3,643 ÷ (7,832 – 480) = 49.55%
| 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. | YUM! Brands Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015. |
Estimated Total Useful Life
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
2015 Calculations
1 Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation and amortization expense related to property, plant and equipment
= (7,832 – 480) ÷ 712 = 10
| 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. | YUM! Brands Inc. estimated total useful life of depreciable property, plant and equipment increased from 2013 to 2014 but then decreased significantly from 2014 to 2015. |
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
2015 Calculations
1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation and amortization expense related to property, plant and equipment
= 3,643 ÷ 712 = 5
| 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. | YUM! Brands Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015. |
Estimated Remaining Life
Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).
2015 Calculations
1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation and amortization expense related to property, plant and equipment
= (4,189 – 480) ÷ 712 = 5
| Asset age ratio | Description | The company |
|---|---|---|
| Estimated remaining life | YUM! Brands Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2013 to 2014 and from 2014 to 2015. |