Property, plant and equipment is recorded at historical cost. Depreciation and amortization are recognized on a straight-line basis over an asset's estimated useful life. Land is not depreciated and construction in progress is not depreciated until ready for service.
Source: PepsiCo Inc., Annual Report
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PepsiCo Inc., Statement of Financial Position, Property, Plant and Equipment
USD $ in millions
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Construction in progress | |
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Gross property, plant and equipment | |
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Property, plant and equipment, net | |
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Source: Based on data from PepsiCo Inc. Annual Reports
| Item | Description | The company |
|---|---|---|
| Land and improvements | Real estate assets held for productive use and depreciable assets that are an addition or improvement to real estate held for productive use. | PepsiCo Inc.'s land and improvements increased from 2009 to 2010 but then slightly declined from 2010 to 2011. |
| Buildings and improvements | 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. | PepsiCo Inc.'s buildings and improvements increased from 2009 to 2010 and from 2010 to 2011. |
| Machinery and equipment, including fleet and software | Carrying amount as of the balance sheet date of long-lived, depreciable asset used in production process to produce goods and services. | PepsiCo Inc.'s machinery and equipment, including fleet and software increased 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. | PepsiCo Inc.'s construction in progress increased from 2009 to 2010 but then slightly declined from 2010 to 2011. |
| Gross property, plant and equipment | 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. | PepsiCo Inc.'s gross property, plant and equipment increased 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. | PepsiCo Inc.'s property, plant and equipment, net increased from 2009 to 2010 and from 2010 to 2011. |
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PepsiCo Inc., Property, Plant and Equipment Ratios
| Dec 31, 2011 | Dec 25, 2010 | Dec 26, 2009 | Dec 27, 2008 | Dec 29, 2007 | ||
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Average age | % |
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Estimated age, time elapsed since purchase (years) | |
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Estimated remaining life (years) | |
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| Ratio | Description | The company |
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| 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. | PepsiCo Inc.'s average age of depreciable property, plant and equipment improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011. |
| Estimated total useful life | Over longer time periods, this ratio is a useful measure of company's depreciation policy and can be used for comparisons with competitors. | PepsiCo Inc.'s estimated total useful life of depreciable property, plant and equipment declined from 2009 to 2010 and from 2010 to 2011. |
| Estimated time elapsed since purchase | The approximate age in years of a company's fixed assets. Useful for comparison purposes. | PepsiCo Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2009 to 2010 and from 2010 to 2011. |
| Estimated remaining life | PepsiCo Inc.'s estimated remaining life of depreciable property, plant and equipment increased from 2009 to 2010 but then declined significantly from 2010 to 2011. |
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| Dec 31, 2011 | Dec 25, 2010 | Dec 26, 2009 | Dec 27, 2008 | Dec 29, 2007 | ||
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| Selected Financial Data (USD $ in millions) | ||||||
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Accumulated depreciation | |
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Gross property, plant and equipment | |
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Land and improvements | |
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Average age1 | % |
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2011 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Gross property, plant and equipment – Land and improvements)
= 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. | PepsiCo Inc.'s average age of depreciable property, plant and equipment improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011. |
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| Dec 31, 2011 | Dec 25, 2010 | Dec 26, 2009 | Dec 27, 2008 | Dec 29, 2007 | ||
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| Selected Financial Data (USD $ in millions) | ||||||
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Gross property, plant and equipment | |
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Land and improvements | |
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Depreciation expense | |
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Estimated total useful life (years)1 | |
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2011 Calculations
1 Estimated total useful life (years) = (Gross property, plant and equipment – Land and improvements) ÷ Depreciation expense
= ( – ) ÷ =
| Ratio | Description | The company |
|---|---|---|
| Estimated total useful life | Over longer time periods, this ratio is a useful measure of company's depreciation policy and can be used for comparisons with competitors. | PepsiCo Inc.'s estimated total useful life of depreciable property, plant and equipment declined from 2009 to 2010 and from 2010 to 2011. |
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| Dec 31, 2011 | Dec 25, 2010 | Dec 26, 2009 | Dec 27, 2008 | Dec 29, 2007 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
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Accumulated depreciation | |
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Depreciation expense | |
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Time elapsed since purchase (years)1 | |
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2011 Calculations
1 Time elapsed since purchase (years) = Accumulated depreciation ÷ Depreciation expense
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Estimated time elapsed since purchase | The approximate age in years of a company's fixed assets. Useful for comparison purposes. | PepsiCo Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2009 to 2010 and from 2010 to 2011. |
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| Dec 31, 2011 | Dec 25, 2010 | Dec 26, 2009 | Dec 27, 2008 | Dec 29, 2007 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
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Property, plant and equipment, net | |
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Land and improvements | |
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Depreciation expense | |
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Estimated remaining life (years)1 | |
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2011 Calculations
1 Estimated remaining life (years) = (Property, plant and equipment, net – Land and improvements) ÷ Depreciation expense
= ( – ) ÷ =
| Ratio | Description | The company |
|---|---|---|
| Estimated remaining life | PepsiCo Inc.'s estimated remaining life of depreciable property, plant and equipment increased from 2009 to 2010 but then declined significantly from 2010 to 2011. |
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