Analysis of Property, Plant and Equipment
Paying user area
Try for free
Celgene Corp. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Celgene Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Property, Plant and Equipment Disclosure
Celgene Corp., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
- Land
- Land value demonstrated a steady increase over the period, starting at $38 million in 2014 and reaching $81 million by 2018, more than doubling within five years. This reflects a consistent acquisition or revaluation of land assets.
- Buildings
- Buildings showed significant growth, increasing from $261 million in 2014 to $639 million in 2018. The largest jump occurred between 2016 and 2017, indicating possible major investments or expansions in physical infrastructure.
- Building and Operating Equipment
- This category initially saw modest increases from $32 million in 2014 to $54 million in 2017, then experienced a substantial rise to $170 million by 2018, suggesting a major acquisition or upgrade of equipment in the final year.
- Leasehold Improvements
- Leasehold improvements remained relatively stable from 2014 to 2017, fluctuating slightly around the $136-153 million range, before rising significantly to $236 million in 2018, indicating considerable investment in leased property enhancements.
- Machinery and Equipment
- Machinery and equipment steadily increased across all years from $214 million in 2014 to $426 million in 2018, demonstrating ongoing capacity expansion or technological upgrades.
- Furniture and Fixtures
- Furniture and fixtures grew gradually from $49 million in 2014 to $79 million in 2018, representing moderate investment in office or facility furnishings.
- Computer Equipment and Software
- There was consistent growth in computer equipment and software, increasing from $333 million in 2014 to $563 million in 2018. This steady increase points to continuous investment in IT infrastructure and software capabilities.
- Construction in Progress
- Construction in progress showed fluctuations, rising sharply from $105 million in 2014 to $221 million in 2015, followed by a decline to $149 million in 2016, increasing again to $224 million in 2017, then falling to $166 million in 2018. This pattern indicates ongoing but variable investment in projects under development.
- Property, Plant and Equipment, Gross
- The gross value of property, plant, and equipment increased consistently from $1,166 million in 2014 to $2,360 million in 2018, more than doubling over five years, reflecting substantial capital expenditures and asset acquisitions.
- Accumulated Depreciation and Amortization
- Accumulated depreciation and amortization increased in absolute value from -$524 million in 2014 to -$993 million in 2018, consistent with aging assets and ongoing depreciation charges, offsetting gross asset increases.
- Property, Plant and Equipment, Net
- The net property, plant, and equipment grew steadily from $643 million in 2014 to $1,367 million in 2018, reflecting the net effect of increasing asset acquisitions exceeding the accumulated depreciation, indicating asset base expansion and potential capacity growth.
Asset Age Ratios (Summary)
Celgene Corp., asset age ratios
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
- Average age ratio
- The average age ratio shows a gradual decline from 46.4% in 2014 to 43.57% in 2018. This indicates a slight reduction in the proportion of the assets’ age relative to their total estimated useful life over the five-year period, suggesting ongoing investment in newer assets or disposal of older assets.
- Estimated total useful life
- The estimated total useful life of the property, plant, and equipment has increased steadily from 11 years in 2014 to 14 years by 2017 and remained constant in 2018. This reflects either adjustments in asset lifespan assumptions or investments in assets with longer useful lives over the years.
- Estimated age, time elapsed since purchase
- The estimated age of the assets increased moderately from 5 years in 2014 and 2015 to 6 years from 2016 onwards. This indicates a maturing asset base but at a stabilized rate, showing the assets have aged consistently throughout the period.
- Estimated remaining life
- The estimated remaining life has improved from 6 years in 2014 and 2015 to 8 years by 2018. This suggests that assets with a longer remaining service period have either been added or that reassessments have extended the expected operational lifespan of existing assets.
Average Age
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
2018 Calculations
1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, gross – Land)
= 100 × ÷ ( – ) =
- Property, Plant, and Equipment Gross Value
- There is a clear upward trend in the gross value of property, plant, and equipment from 2014 through 2018. The value increased steadily each year, rising from $1,166 million in 2014 to $2,360 million in 2018. This suggests consistent investment and expansion in fixed assets over the period.
- Accumulated Depreciation and Amortization
- Accumulated depreciation and amortization also show an increasing pattern across the years. The amount grew from $524 million at the end of 2014 to $993 million by the end of 2018. This rising trend corresponds with the growth in gross property, plant, and equipment, reflecting the ongoing usage and aging of these assets.
- Land
- The value of land exhibited a modest increase, beginning at $38 million in 2014 and reaching $81 million in 2018. The growth is gradual and less pronounced compared to the overall plant and equipment values, indicating relatively stable land holdings with some incremental additions.
- Average Age Ratio
- The average age ratio demonstrated a slight decline over the observed period, moving from 46.4% in 2014 down to 43.57% in 2018. This gradual decrease suggests that on average, the asset base might be becoming newer, which aligns with the increasing investments reflected in the gross property and equipment values.
- Overall Insights
- The data indicates a strategy of ongoing investment in property, plant, and equipment. Rising gross values combined with an increasing accumulated depreciation suggest the company is actively growing its asset base while also accounting for wear and usage. The stable and slowly increasing land value implies limited but steady real estate acquisition. The decline in average age ratio complements this picture by indicating that the company's assets are on average slightly newer as time progresses.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
2018 Calculations
1 Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation expense
= ( – ) ÷ =
- Property, plant and equipment, gross
- There is a consistent upward trend in the gross value of property, plant, and equipment over the five-year period. The amount increased from $1,166 million at the end of 2014 to $2,360 million by the end of 2018, representing more than a doubling within the timeframe. This suggests ongoing significant investment in fixed assets.
- Land
- The value of land shows a moderate increase over the same period. Starting from $38 million in 2014, it rose to $81 million by the end of 2018. The growth appears less pronounced compared to the overall property, plant, and equipment, indicating that most asset additions may be related to buildings or equipment rather than land acquisitions.
- Depreciation expense
- Depreciation expense has steadily increased each year, from $104 million in 2014 to $160 million in 2018. This gradual rise aligns with the growth in fixed asset values, reflecting higher depreciation charges as a result of increased investment in property, plant, and equipment.
- Estimated total useful life
- The estimated total useful life of the assets extended from 11 years in 2014 to 14 years in 2018. The incremental increase each year through 2017, and then stabilization at 14 years, may suggest changes in asset composition or more optimistic assumptions regarding asset longevity.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
2018 Calculations
1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation expense
= ÷ =
- Accumulated depreciation and amortization
- The accumulated depreciation and amortization showed a consistent upward trend from 2014 to 2018. Starting at $524 million in 2014, the figure increased each year, reaching $993 million by the end of 2018. This steady increase indicates ongoing asset usage and gradual value reduction over time.
- Depreciation expense
- The depreciation expense also experienced a continuous increase over the observed period. It rose from $104 million in 2014 to $160 million in 2018. The upward movement suggests an increasing allocation of cost for asset depreciation annually, which could be due to additions of new assets, changes in depreciation methods, or adjustments in asset values.
- Time elapsed since purchase
- The time elapsed since purchase remained relatively stable over the period, moving from 5 years in the initial two years to 6 years in the last three years. This indicates that the average age of property, plant, and equipment was fairly consistent, implying no significant shifts in asset turnover or replacement during the timeframe.
Estimated Remaining Life
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
2018 Calculations
1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= ( – ) ÷ =
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment shows a consistent upward trend over the five-year period. It increased from $643 million in 2014 to $1,367 million in 2018, more than doubling in value. This steady growth indicates ongoing investment in physical assets.
- Land
- The value of land increased slightly from $38 million in 2014 to $81 million in 2018. The most significant increase occurred between 2014 and 2015, where the value almost doubled. After 2015, the land value remains relatively stable with minor increases, suggesting limited additional land acquisitions.
- Depreciation Expense
- Depreciation expense consistently rose throughout the period, from $104 million in 2014 to $160 million in 2018. The increase indicates growing depreciation costs, likely related to the expansion and acquisition of property, plant, and equipment over time.
- Estimated Remaining Life
- The estimated remaining useful life of the assets increased gradually from 6 years in 2014 and 2015 to 8 years by 2018. This extension may reflect the acquisition of newer assets with longer useful lives or reassessment of existing assets' longevity.