Zoetis Inc., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Land	25)	26)	22)	22)	22)
Buildings	1,316)	1,197)	1,103)	1,019)	983)
Machinery, equipment and fixtures	3,372)	3,013)	2,627)	2,440)	2,119)
Construction-in-progress	1,085)	814)	742)	673)	553)
Property, plant and equipment, gross carrying amount	5,798)	5,050)	4,494)	4,154)	3,677)
Accumulated depreciation	(2,594)	(2,297)	(2,072)	(1,952)	(1,737)
Property, plant and equipment, less accumulated depreciation	3,204)	2,753)	2,422)	2,202)	1,940)

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Item	Description	The company
Property, plant and equipment, gross carrying amount	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.	Zoetis Inc. property, plant and equipment, gross carrying amount increased from 2021 to 2022 and from 2022 to 2023.
Property, plant and equipment, less accumulated depreciation	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.	Zoetis Inc. property, plant and equipment, less accumulated depreciation increased from 2021 to 2022 and from 2022 to 2023.

Zoetis Inc., asset age ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Average age ratio	44.93%	45.72%	46.33%	47.24%	47.52%
Estimated total useful life (years)	19	18	18	20	21
Estimated age, time elapsed since purchase (years)	8	8	8	9	10
Estimated remaining life (years)	10	10	10	10	11

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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.	Zoetis Inc. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.
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.	Zoetis Inc. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Zoetis Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Estimated remaining life		Zoetis Inc. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation	2,594)	2,297)	2,072)	1,952)	1,737)
Property, plant and equipment, gross carrying amount	5,798)	5,050)	4,494)	4,154)	3,677)
Land	25)	26)	22)	22)	22)
Asset Age Ratio
Average age¹	44.93%	45.72%	46.33%	47.24%	47.52%

2023 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross carrying amount – Land)
= 100 × 2,594 ÷ (5,798 – 25) = 44.93%

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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.	Zoetis Inc. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross carrying amount	5,798)	5,050)	4,494)	4,154)	3,677)
Land	25)	26)	22)	22)	22)
Depreciation expense	306)	272)	244)	211)	175)
Asset Age Ratio (Years)
Estimated total useful life¹	19	18	18	20	21

2023 Calculations

¹ Estimated total useful life = (Property, plant and equipment, gross carrying amount – Land) ÷ Depreciation expense
= (5,798 – 25) ÷ 306 = 19

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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.	Zoetis Inc. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation	2,594)	2,297)	2,072)	1,952)	1,737)
Depreciation expense	306)	272)	244)	211)	175)
Asset Age Ratio (Years)
Time elapsed since purchase¹	8	8	8	9	10

2023 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 2,594 ÷ 306 = 8

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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.	Zoetis Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Property, plant and equipment, less accumulated depreciation	3,204)	2,753)	2,422)	2,202)	1,940)
Land	25)	26)	22)	22)	22)
Depreciation expense	306)	272)	244)	211)	175)
Asset Age Ratio (Years)
Estimated remaining life¹	10	10	10	10	11

2023 Calculations

¹ Estimated remaining life = (Property, plant and equipment, less accumulated depreciation – Land) ÷ Depreciation expense
= (3,204 – 25) ÷ 306 = 10

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Asset age ratio	Description	The company
Estimated remaining life		Zoetis Inc. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Zoetis Inc. (NYSE:ZTS)

Analysis of Property, Plant and Equipment