Advanced Micro Devices Inc., balance sheet: property, plant and equipment

US$ in millions

	Dec 26, 2020	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016
Leasehold improvements	208	203	179	187	148
Equipment	1,209	951	798	758	714
Construction in progress	136	114	78	56	19
Property and equipment, gross	1,553	1,268	1,055	1,001	881
Accumulated depreciation	(912)	(768)	(707)	(740)	(717)
Property and equipment, net	641	500	348	261	164

Item	Description	The company
Property 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.	Advanced Micro Devices Inc.’s property and equipment, gross increased from 2018 to 2019 and from 2019 to 2020.
Property 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.	Advanced Micro Devices Inc.’s property and equipment, net increased from 2018 to 2019 and from 2019 to 2020.

Advanced Micro Devices Inc., asset age ratios

	Dec 26, 2020	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016
Average age ratio	58.73%	60.57%	67.01%	73.93%	81.38%
Estimated total useful life (years)	7	9	11	13	12
Estimated age, time elapsed since purchase (years)	4	5	8	10	10
Estimated remaining life (years)	3	4	4	3	2

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’s fixed asset base is old or new. Newer assets are likely to be more efficient.	Advanced Micro Devices Inc.’s average age ratio of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.
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.	Advanced Micro Devices Inc.’s estimated total useful life of depreciable property, plant and equipment decreased from 2018 to 2019 and from 2019 to 2020.
Estimated time elapsed since purchase	The approximate age in years of a company’s fixed assets. Useful for comparison purposes.	Advanced Micro Devices Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.
Estimated remaining life		Advanced Micro Devices Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2018 to 2019 and from 2019 to 2020.

	Dec 26, 2020	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation	912	768	707	740	717
Property and equipment, gross	1,553	1,268	1,055	1,001	881
Asset Age Ratio
Average age¹	58.73%	60.57%	67.01%	73.93%	81.38%

2020 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ Property and equipment, gross
= 100 × 912 ÷ 1,553 = 58.73%

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’s fixed asset base is old or new. Newer assets are likely to be more efficient.	Advanced Micro Devices Inc.’s average age ratio of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.

	Dec 26, 2020	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Property and equipment, gross	1,553	1,268	1,055	1,001	881
Depreciation expense	217	142	94	77	71
Asset Age Ratio (Years)
Estimated total useful life¹	7	9	11	13	12

2020 Calculations

¹ Estimated total useful life = Property and equipment, gross ÷ Depreciation expense
= 1,553 ÷ 217 = 7

Asset age 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.	Advanced Micro Devices Inc.’s estimated total useful life of depreciable property, plant and equipment decreased from 2018 to 2019 and from 2019 to 2020.

	Dec 26, 2020	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation	912	768	707	740	717
Depreciation expense	217	142	94	77	71
Asset Age Ratio (Years)
Time elapsed since purchase¹	4	5	8	10	10

2020 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 912 ÷ 217 = 4

Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company’s fixed assets. Useful for comparison purposes.	Advanced Micro Devices Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.

	Dec 26, 2020	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Property and equipment, net	641	500	348	261	164
Depreciation expense	217	142	94	77	71
Asset Age Ratio (Years)
Estimated remaining life¹	3	4	4	3	2

2020 Calculations

¹ Estimated remaining life = Property and equipment, net ÷ Depreciation expense
= 641 ÷ 217 = 3

Asset age ratio	Description	The company
Estimated remaining life		Advanced Micro Devices Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2018 to 2019 and from 2019 to 2020.

Advanced Micro Devices Inc. (NASDAQ:AMD)

Analysis of Property, Plant and Equipment