Paying users zone. Data is covered by .

  • Get to Alphabet Inc. for $19.99, or

  • get to whole website for at least 3 months from $49.99.

 

$19.99


Property, Plant and Equipment Accounting Policy

Alphabet accounts for property and equipment at cost less accumulated depreciation. Alphabet computes depreciation using the straight-line method over the estimated useful lives of the assets. Alphabet depreciates buildings over periods up to 25 years. Alphabet generally depreciates information technology assets over periods up to 7 years. Alphabet depreciates leasehold improvements over the shorter of the remaining lease term or the estimated useful lives of the assets. Construction in progress is the construction or development of property and equipment that have not yet been placed in service for Alphabet's intended use. Depreciation for equipment, buildings, and leasehold improvements commences once they are ready for Alphabet's intended use. Land is not depreciated.

Source: Alphabet Inc., Annual Report

Top


Property, Plant and Equipment Disclosure

Alphabet Inc., Statement of Financial Position, Property, Plant and Equipment

USD $ in millions

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Land and buildings
Information technology assets
Construction in progress
Leasehold improvements
Furniture and fixtures
Property and equipment, gross
Accumulated depreciation
Property and equipment, net

Source: Based on data from Alphabet Inc. Annual Reports

Item Description The company
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. Alphabet Inc.'s construction in progress increased from 2015 to 2016 and from 2016 to 2017.
Leasehold improvements Carrying amount at the balance sheet date of long-lived, depreciable asset that is an addition or improvement to assets held under lease arrangement. Alphabet Inc.'s leasehold improvements increased from 2015 to 2016 and from 2016 to 2017.
Furniture and fixtures 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. Alphabet Inc.'s furniture and fixtures declined from 2015 to 2016 and from 2016 to 2017.
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. Alphabet Inc.'s property and equipment, gross increased from 2015 to 2016 and from 2016 to 2017.
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. Alphabet Inc.'s property and equipment, net increased from 2015 to 2016 and from 2016 to 2017.

Top


Property, Plant and Equipment Ratios (Summary)

Alphabet Inc., Property, Plant and Equipment Ratios

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Average age % % % % %
Estimated total useful life (years)
Estimated age, time elapsed since purchase (years)
Estimated remaining life (years)
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. Alphabet Inc.'s average age of depreciable property, plant and equipment deteriorated from 2015 to 2016 and from 2016 to 2017.
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. Alphabet Inc.'s estimated total useful life of depreciable property, plant and equipment declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
Estimated time elapsed since purchase The approximate age in years of a company's fixed assets. Useful for comparison purposes. Alphabet Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Estimated remaining life Alphabet Inc.'s estimated remaining life of depreciable property, plant and equipment declined from 2015 to 2016 but then increased from 2016 to 2017 not reaching 2015 level.

Top


Average Age

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Accumulated depreciation
Property and equipment, gross
Ratio
Average age1 % % % % %

2017 Calculations

1 Average age = 100 × Accumulated depreciation ÷ Property and equipment, gross
= 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. Alphabet Inc.'s average age of depreciable property, plant and equipment deteriorated from 2015 to 2016 and from 2016 to 2017.

Top


Estimated Total Useful Life

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Property and equipment, gross
Depreciation and impairment of property and equipment
Ratio
Estimated total useful life (years)1

2017 Calculations

1 Estimated total useful life (years) = Property and equipment, gross ÷ Depreciation and impairment of property and equipment
= ÷ =

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. Alphabet Inc.'s estimated total useful life of depreciable property, plant and equipment declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

Top


Estimated Age, Time Elapsed Since Purchase

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Accumulated depreciation
Depreciation and impairment of property and equipment
Ratio
Time elapsed since purchase (years)1

2017 Calculations

1 Time elapsed since purchase (years) = Accumulated depreciation ÷ Depreciation and impairment of property and equipment
= ÷ =

Ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company's fixed assets. Useful for comparison purposes. Alphabet Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Top


Estimated Remaining Life

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Property and equipment, net
Depreciation and impairment of property and equipment
Ratio
Estimated remaining life (years)1

2017 Calculations

1 Estimated remaining life (years) = Property and equipment, net ÷ Depreciation and impairment of property and equipment
= ÷ =

Ratio Description The company
Estimated remaining life Alphabet Inc.'s estimated remaining life of depreciable property, plant and equipment declined from 2015 to 2016 but then increased from 2016 to 2017 not reaching 2015 level.

Top