Altria Group Inc. (MO) | Analysis of Property, Plant and Equipment

Property, Plant and Equipment Accounting Policy

Property, plant and equipment are stated at historical costs and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods up to 25 years, and buildings and building improvements over periods up to 50 years. Definite-lived intangible assets are amortized over their estimated useful lives up to 25 years.

Source: Altria Group Inc., Annual Report

Property, Plant and Equipment Disclosure

Altria Group Inc., Statement of Financial Position, Property, Plant and Equipment

Source: Based on data from Altria Group Inc. Annual Reports

Item	Description	The company
Land and land improvements	Real estate assets held for productive use and depreciable assets that are an addition or improvement to real estate held for productive use.	Altria Group Inc.'s land and land improvements declined from 2009 to 2010 and from 2010 to 2011.
Buildings and building equipment	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.	Altria Group Inc.'s buildings and building equipment declined from 2009 to 2010 and from 2010 to 2011.
Machinery and equipment	Carrying amount as of the balance sheet date of long-lived, depreciable asset used in production process to produce goods and services.	Altria Group Inc.'s machinery and equipment declined from 2009 to 2010 and from 2010 to 2011.
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.	Altria Group Inc.'s construction in progress declined from 2009 to 2010 and from 2010 to 2011.
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.	Altria Group Inc.'s property, plant and equipment, at cost declined from 2009 to 2010 and from 2010 to 2011.
Property, plant and equipment, net	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.	Altria Group Inc.'s property, plant and equipment, net declined from 2009 to 2010 and from 2010 to 2011.

Property, Plant and Equipment Ratios (Summary)

Altria Group Inc., Property, Plant and Equipment Ratios

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.	Altria Group Inc.'s average age of depreciable property, plant and equipment improved from 2009 to 2010 and from 2010 to 2011.

Average Age

2011 Calculations

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.	Altria Group Inc.'s average age of depreciable property, plant and equipment improved from 2009 to 2010 and from 2010 to 2011.