Biogen Inc. (NASDAQ:BIIB)

Land

Land values remained relatively stable from 2017 to 2020, fluctuating slightly between approximately 118 million and 145 million US dollars. A significant increase is observed in 2021, with the value rising sharply to 207.5 million US dollars, suggesting notable acquisitions or revaluations during that year.

Buildings

Building values showed a declining trend between 2018 and 2019, dropping from 1.28 billion to 835 million US dollars. However, a recovery trend is evident from 2019 onwards, with values increasing to nearly 1.7 billion US dollars by 2021, indicating substantial investment or capital improvements.

Leasehold Improvements

Leasehold improvements have exhibited consistent growth over the five-year period, increasing steadily from 80.6 million in 2017 to 121 million US dollars in 2021, reflecting ongoing enhancements or renovations in leased properties.

Machinery and Equipment

After a decline in 2019, when values decreased to 844.5 million US dollars, machinery and equipment values recovered progressively, reaching 1.59 billion US dollars in 2021, surpassing previous levels and indicating increased capital spending in this category.

Computer Software and Hardware

Values for computer software and hardware remained relatively stable between 2018 and 2019, around 798 million US dollars, then increased gradually through 2021 to nearly 972 million US dollars, reflecting moderate but consistent investments in IT assets.

Furniture and Fixtures

Furniture and fixtures showed modest fluctuations but a general upward trend, with values increasing from 55.3 million in 2017 to 67.4 million US dollars in 2021, indicating steady but limited capital expenditures in this asset category.

Construction in Progress

This category experienced growth from 1.28 billion US dollars in 2017, peaking at over 2.08 billion in 2019, followed by a decline to 770 million US dollars by the end of 2021. The sharp decrease in 2021 could signify completion of major projects and capitalization of related assets.

Property, Plant and Equipment, Cost

Total cost increased from 4.74 billion US dollars in 2017 to a peak of approximately 5.4 billion in 2018, then decreased to 4.84 billion in 2019 before gradually rising again to 5.42 billion by 2021. This suggests cycles of investment and asset capitalization interspersed with asset disposals or write-downs.

Accumulated Depreciation

Accumulated depreciation increased in absolute value throughout the period, from approximately -1.56 billion US dollars in 2017 to -2.01 billion in 2021. The increasing depreciation aligns with the aging asset base and ongoing asset additions.

Property, Plant and Equipment, Net

Net property, plant, and equipment values rose from 3.18 billion US dollars in 2017 to 3.60 billion in 2018, then declined to 3.25 billion in 2019. Subsequently, a modest recovery followed, stabilizing around 3.42 billion US dollars by 2021. This pattern reflects the interplay between capital investments, asset retirements, and depreciation expense.

Average Age Ratio

The average age ratio exhibits a gradual upward trend over the observed period, increasing from 33.89% in 2017 to 38.47% in 2021. This indicates a steady aging of the property, plant, and equipment assets, suggesting they are becoming older relative to their total useful life.

Estimated Total Useful Life

The estimated total useful life shows variability across the years, initially rising from 17 years in 2017 to 25 years in 2019 and 2020, followed by a decrease to 22 years in 2021. This fluctuation may reflect changes in asset management policies or revisions in asset longevity assumptions.

Estimated Age, Time Elapsed Since Purchase

The estimated age increases consistently each year from 6 years in 2017 to 9 years in 2020 and remains constant in 2021. The plateau in 2021 suggests that either new assets were added to balance the aging curve or some assets were retired, maintaining the average age steady.

Estimated Remaining Life

The estimated remaining life generally increases from 11 years in 2017 to a peak of 16 years in 2019 and 2020, then declines to 14 years in 2021. This pattern aligns with the variations in estimated total useful life and indicates periodic adjustments in asset lifespan estimates, potentially due to revaluation or changes in asset conditions.

Property, Plant, and Equipment Cost

The cost of property, plant, and equipment experienced fluctuations over the analyzed period. It increased from approximately 4.74 billion US dollars at the end of 2017 to around 5.40 billion by the end of 2018, followed by a decline in 2019 to about 4.84 billion. Subsequently, there was a recovery trend with increases to roughly 5.19 billion in 2020 and further to approximately 5.42 billion in 2021. These movements indicate variability in capital investment or asset acquisition/disposition activities during the period.

Accumulated Depreciation

Accumulated depreciation initially rose from approximately 1.56 billion US dollars in 2017 to about 1.80 billion in 2018. It subsequently declined to around 1.59 billion in 2019 before again increasing steadily to about 1.78 billion in 2020 and 2.01 billion by the end of 2021. The dip observed in 2019 may suggest asset disposals or changes in depreciation methods, whereas the upward trend in the following years reflects continued asset aging and ongoing depreciation charges.

Land

The value of land remained relatively stable between 2017 and 2018, with a minor increase from approximately 141.2 million to 144.5 million US dollars. In 2019, a notable decrease occurred, dropping to about 118.1 million. The value stabilized marginally in 2020 at around 119.8 million, followed by a pronounced increase to approximately 207.5 million in 2021. The significant rise in 2021 could indicate new land acquisitions or revaluations.

Average Age Ratio

The average age ratio, expressed as a percentage, showed a generally upward trajectory across the period. Starting at 33.89% in 2017, it slightly increased to 34.21% in 2018, dipped marginally to 33.7% in 2019, then rose more substantially to 35.13% in 2020, and further to 38.47% in 2021. This increasing trend suggests an aging asset base, potentially indicating less frequent asset replacement or longer asset utilization durations over time.

Property, Plant, and Equipment Cost

The cost of property, plant, and equipment displayed fluctuations over the five-year period. It initially increased from approximately 4.74 billion USD in 2017 to around 5.40 billion USD in 2018, followed by a decline to about 4.84 billion USD in 2019. Subsequently, the cost rose again to approximately 5.19 billion USD in 2020 and further increased to roughly 5.42 billion USD in 2021. This pattern indicates variations in capital spending or asset disposals over the years.

Land

The value of land experienced a general decline from 2017 through 2019, decreasing from 141.2 million USD to 118.1 million USD. There was a slight increase in 2020 to 119.8 million USD, followed by a significant uplift to 207.5 million USD in 2021. The sharp rise in 2021 may suggest recent acquisitions or revaluations of land assets.

Depreciation Expense

Depreciation expense remained relatively stable around 266 million USD in 2017 and 269 million USD in 2018, before decreasing notably to 190.6 million USD in 2019. It slightly increased to 201.9 million USD in 2020 and continued to rise to 235.3 million USD in 2021. This decline and subsequent increase could be related to changes in asset base, useful life revisions, or capital expenditure timing.

Estimated Total Useful Life

There was a noticeable increase in the estimated total useful life of the assets from 17 years in 2017 to 20 years in 2018, followed by stability at 25 years in 2019 and 2020. The estimate slightly decreased to 22 years in 2021. These changes reflect adjustments in asset longevity estimations, which can impact the depreciation expense calculation over the period.

The analysis of the annual property, plant, and equipment data reveals several key trends regarding depreciation and the age of assets.

Accumulated Depreciation

The accumulated depreciation amount exhibits fluctuations across the periods. It increased from 1,559,100 thousand US dollars in 2017 to 1,797,400 thousand in 2018. However, it declined to 1,590,900 thousand in 2019 before rising again to 1,782,300 thousand in 2020 and further increasing to 2,006,600 thousand by the end of 2021. This pattern suggests periodic adjustments or disposals that temporarily reduce the total accumulated depreciation, followed by sustained increases consistent with ongoing asset usage and aging.

Depreciation Expense

The depreciation expense generally decreased from 266,300 thousand US dollars in 2017 to 190,600 thousand in 2019. After this drop, it showed moderate growth, climbing to 201,900 thousand in 2020 and further to 235,300 thousand in 2021. This trend might indicate a varying rate of depreciation costs applied over time or changes in the composition and utilization of depreciable assets.

Time Elapsed Since Purchase

The average age of assets increased steadily from 6 years in 2017 to 9 years in 2020, remaining stable at 9 years in 2021. This steadily aging asset base suggests limited acquisition of new fixed assets or slower asset turnover in the latter periods.

Overall, the data portrays an asset base that is maturing in age, with accumulated depreciation reflecting both growth and occasional reductions, possibly due to asset retirements or reevaluations. Depreciation expenses showed an initial decline followed by recovery, potentially reflecting changes in asset usage or depreciation methods.

The financial data for property, plant, and equipment reveal several notable trends over the five-year period ending December 31, 2021.

Net Property, Plant, and Equipment

Net property, plant, and equipment values increased from approximately $3.18 billion in 2017 to a peak of around $3.60 billion in 2018. However, a decline followed in 2019, bringing the value down to about $3.25 billion. From 2019 onward, the net value modestly increased again, reaching approximately $3.42 billion by the end of 2021, indicating a relatively stable asset base with some fluctuations attributable to capital spending, disposals, or depreciation effects.

Land

The reported value of land showed inconsistency over the period. Starting at approximately $141.2 million in 2017, it slightly increased in 2018, then declined significantly in 2019 and 2020, hitting about $119.8 million. By 2021, however, there was a sharp increase to $207.5 million, significantly higher than prior years. This large jump may suggest acquisitions or revaluation of land assets late in the period.

Depreciation Expense

Depreciation expense remained relatively steady in 2017 and 2018, around $266 million and $269 million respectively, before declining substantially in 2019 to approximately $190.6 million. A gradual increase followed over the next two years, reaching $235.3 million in 2021. The dip in 2019 could reflect changes in asset composition or depreciation policies, while the subsequent rise may relate to asset additions or accelerated depreciation schedules.

Estimated Remaining Life

The estimated remaining useful life of property, plant, and equipment extended from 11 years in 2017 to 13 years in 2018, then increased notably to 16 years through 2019 and 2020. In 2021, the remaining life slightly decreased to 14 years. The increasing trend suggests a possible shift towards newer or refurbished assets with longer useful lives, while the later decrease could indicate the aging of the asset base or reassessment of useful lives.

In summary, the data show fluctuations in net property, plant, and equipment value with an overall growth trend toward the end of the period. Land values exhibited volatility, especially with a considerable increase in 2021. Depreciation expense decreased in 2019 but recovered subsequently, while the estimated remaining life of assets generally increased before a slight decline in the final year. These patterns might reflect the company's asset acquisition strategies, capital expenditure timing, and depreciation policy adjustments over the analyzed timeframe.