Property, Plant and Equipment Accounting Policy
Property and equipment are stated at cost. Gains or losses on disposition are recognized as earned or incurred. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are charged to expense as incurred. The following detail of property and equipment includes estimated useful lives which are generally used to depreciate the assets on a straight-line basis:
| | Estimated Useful Lives |
|---|
| Land |
N/A |
| Buildings and improvements |
3–40 years |
| Fixtures and equipment |
3–25 years |
| Transportation equipment |
3–15 years |
| Construction in progress |
N/A |
Leasehold improvements are depreciated over the shorter of the estimated useful life of the asset or the remaining expected lease term. Depreciation expense, including amortization of property under capital leases, for fiscal 2012, 2011 and 2010 was $8.1 billion, $7.6 billion and $7.2 billion, respectively. Interest costs capitalized on construction projects were $60 million, $63 million and $85 million in fiscal 2012, 2011 and 2010, respectively.
Source: Wal-Mart Stores Inc., Annual Report
Property, Plant and Equipment Disclosure
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Wal-Mart Stores Inc., Statement of Financial Position, Property, Plant and Equipment
Source: Based on data from Wal-Mart Stores Inc. Annual Reports
| Item |
Description |
The company |
| Land |
Carrying amount as of the balance sheet date of real estate held for productive use. This excludes land held for sale. |
Wal-Mart Stores Inc.'s land increased from 2010 to 2011 but then slightly declined from 2011 to 2012.
|
| 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. |
Wal-Mart Stores Inc.'s buildings and improvements increased from 2010 to 2011 and from 2011 to 2012.
|
| Fixtures and equipment |
Carrying amount at the balance sheet date for long-lived, depreciable asset commonly used in offices and stores. Examples include desks, chairs, and store fixtures. |
Wal-Mart Stores Inc.'s fixtures and equipment increased from 2010 to 2011 and from 2011 to 2012.
|
| Transportation equipment |
Carrying amount as of the balance sheet date of long-lived, depreciable asset used in production process to produce goods and services. |
Wal-Mart Stores Inc.'s transportation equipment increased from 2010 to 2011 and from 2011 to 2012.
|
| Construction in process |
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. |
Wal-Mart Stores Inc.'s construction in process declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding 2010 level.
|
| Property under capital leases |
The total gross amount of assets subject to a lease meeting the criteria for capitalization. |
Wal-Mart Stores Inc.'s property under capital leases increased from 2010 to 2011 and from 2011 to 2012.
|
| Property and equipment, gross |
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. |
Wal-Mart Stores Inc.'s property and equipment, gross increased from 2010 to 2011 and from 2011 to 2012.
|
| Property 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. |
Wal-Mart Stores Inc.'s property and equipment, net increased from 2010 to 2011 and from 2011 to 2012.
|
Property, Plant and Equipment Ratios (Summary)
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Wal-Mart Stores 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. |
Wal-Mart Stores Inc.'s average age of depreciable property, plant and equipment deteriorated from 2010 to 2011 but then slightly improved from 2011 to 2012.
|
| 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. |
Wal-Mart Stores Inc.'s estimated total useful life of depreciable property, plant and equipment increased from 2010 to 2011 but then slightly declined from 2011 to 2012.
|
| Estimated time elapsed since purchase |
The approximate age in years of a company's fixed assets. Useful for comparison purposes. |
Wal-Mart Stores Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2010 to 2011 but then slightly improved from 2011 to 2012.
|
| Estimated remaining life |
|
Wal-Mart Stores Inc.'s estimated remaining life of depreciable property, plant and equipment declined from 2010 to 2011 and from 2011 to 2012.
|
Average Age
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2012 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. |
Wal-Mart Stores Inc.'s average age of depreciable property, plant and equipment deteriorated from 2010 to 2011 but then slightly improved from 2011 to 2012.
|
Estimated Total Useful Life
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2012 Calculations
| 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. |
Wal-Mart Stores Inc.'s estimated total useful life of depreciable property, plant and equipment increased from 2010 to 2011 but then slightly declined from 2011 to 2012.
|
Estimated Age, Time Elapsed Since Purchase
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2012 Calculations
| Ratio |
Description |
The company |
| Estimated time elapsed since purchase |
The approximate age in years of a company's fixed assets. Useful for comparison purposes. |
Wal-Mart Stores Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2010 to 2011 but then slightly improved from 2011 to 2012.
|
Estimated Remaining Life
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2012 Calculations
| Ratio |
Description |
The company |
| Estimated remaining life |
|
Wal-Mart Stores Inc.'s estimated remaining life of depreciable property, plant and equipment declined from 2010 to 2011 and from 2011 to 2012.
|
