Paying users zone. Data is covered by hidden.

  • Get to Automatic Data Processing Inc. for $15.99, or

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

Microsoft Excel LibreOffice Calc


Analysis of Property, Plant and Equipment

Difficulty: Advanced


Property, Plant and Equipment Accounting Policy

Property, plant and equipment is stated at cost less accumulated depreciation on the Consolidated Balance Sheets. Depreciation is recognized over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the improvements. The estimated useful lives of assets are primarily as follows:

Data processing equipment 2 to 5 years
Buildings 20 to 40 years
Furniture and fixtures 4 to 7 years

ADP has obligations under various facilities and equipment leases. ADP assesses whether these arrangements meet the criteria for capital leases by determining whether the agreement transfers ownership of the asset, whether the lease includes a bargain purchase option, whether the lease term is for greater than 75% of the asset's useful life, or whether the minimum lease payments exceed 90% of the leased equipment's fair market value. All of ADP's leases are classified as operating leases. Total expense under these operating lease agreements was approximately $234.9 million, $234.5 million, and $201.7 million in fiscal 2018, 2017, and 2016, respectively.

Source: Automatic Data Processing Inc., Annual Report


Property, Plant and Equipment Disclosure

Automatic Data Processing Inc., Statement of Financial Position, Property, Plant and Equipment

USD $ in thousands

Microsoft Excel LibreOffice Calc
Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Land and buildings hidden hidden hidden hidden hidden hidden
Data processing equipment hidden hidden hidden hidden hidden hidden
Furniture, leaseholds, and other hidden hidden hidden hidden hidden hidden
Property, plant and equipment, gross hidden hidden hidden hidden hidden hidden
Accumulated depreciation hidden hidden hidden hidden hidden hidden
Property, plant and equipment, net hidden hidden hidden hidden hidden hidden

Source: Based on data from Automatic Data Processing Inc. Annual Reports

Item Description The company
Property, plant 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. Automatic Data Processing Inc.'s property, plant and equipment, gross increased from 2016 to 2017 and from 2017 to 2018.
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. Automatic Data Processing Inc.'s property, plant and equipment, net increased from 2016 to 2017 and from 2017 to 2018.

Property, Plant and Equipment Ratios (Summary)

Automatic Data Processing Inc., Property, Plant and Equipment Ratios

Microsoft Excel LibreOffice Calc
Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Average age hidden% hidden% hidden% hidden% hidden% hidden%
Estimated total useful life (years) hidden hidden hidden hidden hidden hidden
Estimated age, time elapsed since purchase (years) hidden hidden hidden hidden hidden hidden
Estimated remaining life (years) hidden hidden hidden hidden hidden hidden
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. Automatic Data Processing Inc.'s average age of depreciable property, plant and equipment improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
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. Automatic Data Processing Inc.'s estimated total useful life of depreciable property, plant and equipment increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
Estimated time elapsed since purchase The approximate age in years of a company's fixed assets. Useful for comparison purposes. Automatic Data Processing Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2016 to 2017 and from 2017 to 2018.
Estimated remaining life Automatic Data Processing Inc.'s estimated remaining life of depreciable property, plant and equipment increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Average Age

Microsoft Excel LibreOffice Calc
Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Selected Financial Data (USD $ in thousands)
Accumulated depreciation hidden hidden hidden hidden hidden hidden
Property, plant and equipment, gross hidden hidden hidden hidden hidden hidden
Ratio
Average age1 hidden% hidden% hidden% hidden% hidden% hidden%

2018 Calculations

1 Average age = 100 × Accumulated depreciation ÷ Property, plant and equipment, gross
= 100 × hidden ÷ hidden = hidden%

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. Automatic Data Processing Inc.'s average age of depreciable property, plant and equipment improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Selected Financial Data (USD $ in thousands)
Property, plant and equipment, gross hidden hidden hidden hidden hidden hidden
Depreciation of property, plant and equipment hidden hidden hidden hidden hidden hidden
Ratio
Estimated total useful life (years)1 hidden hidden hidden hidden hidden hidden

2018 Calculations

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

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. Automatic Data Processing Inc.'s estimated total useful life of depreciable property, plant and equipment increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Estimated Age, Time Elapsed Since Purchase

Microsoft Excel LibreOffice Calc
Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Selected Financial Data (USD $ in thousands)
Accumulated depreciation hidden hidden hidden hidden hidden hidden
Depreciation of property, plant and equipment hidden hidden hidden hidden hidden hidden
Ratio
Time elapsed since purchase (years)1 hidden hidden hidden hidden hidden hidden

2018 Calculations

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

Ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company's fixed assets. Useful for comparison purposes. Automatic Data Processing Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2016 to 2017 and from 2017 to 2018.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Selected Financial Data (USD $ in thousands)
Property, plant and equipment, net hidden hidden hidden hidden hidden hidden
Depreciation of property, plant and equipment hidden hidden hidden hidden hidden hidden
Ratio
Estimated remaining life (years)1 hidden hidden hidden hidden hidden hidden

2018 Calculations

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

Ratio Description The company
Estimated remaining life Automatic Data Processing Inc.'s estimated remaining life of depreciable property, plant and equipment increased from 2016 to 2017 but then declined significantly from 2017 to 2018.