Property and equipment are stated at cost, less accumulated depreciation or amortization, whenever applicable. Depreciation and amortization expenses for property and equipment were approximately $1.1 billion, $1.1 billion, and $1.0 billion for fiscal 2018, 2017, and 2016, respectively. Depreciation and amortization are computed using the straight-line method, generally over the following periods:

Asset Category	Period
Buildings	25 years
Building improvements	10 years
Leasehold improvements	Shorter of remaining lease term or up to 10 years
Computer equipment and related software	30 to 36 months
Production, engineering, and other equipment	Up to 5 years
Operating lease assets	Based on lease term
Furniture and fixtures	5 years

Source: 10-K (filing date: 2018-09-06).

Cisco Systems Inc., Statement of Financial Position, Property, Plant and Equipment

USD $ in millions

	Jul 28, 2018	Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013
Land, buildings, and building and leasehold improvements	4,710	4,926	4,778	4,495	4,468	4,426
Computer equipment and related software	1,085	1,258	1,288	1,310	1,425	1,416
Production, engineering, and other equipment	5,734	5,707	5,658	5,753	5,756	5,721
Operating lease assets	356	356	296	372	362	326
Furniture and fixtures	358	572	543	497	509	497
Gross property and equipment	12,243	12,819	12,563	12,427	12,520	12,386
Accumulated depreciation and amortization	(9,237)	(9,497)	(9,057)	(9,095)	(9,268)	(9,064)
Property and equipment, net	3,006	3,322	3,506	3,332	3,252	3,322

Based on: 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09), 10-K (filing date: 2013-09-10).

Item	Description	The company
Gross property and equipment	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.	Cisco Systems Inc.’s gross property and equipment increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
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.	Cisco Systems Inc.’s property and equipment, net declined from 2016 to 2017 and from 2017 to 2018.

Cisco Systems Inc., Property, Plant and Equipment Ratios

	Jul 28, 2018	Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013
Average age	75.45%	74.09%	72.09%	73.19%	74.03%	73.18%
Estimated total useful life (years)	11	12	13	11	10	10
Estimated age, time elapsed since purchase (years)	8	9	9	8	8	8
Estimated remaining life (years)	3	3	4	3	3	3

Based on: 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09), 10-K (filing date: 2013-09-10).

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.	Cisco Systems Inc.’s average age of depreciable property, plant and equipment deteriorated from 2016 to 2017 and 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.	Cisco Systems Inc.’s estimated total useful life of depreciable property, plant and equipment declined from 2016 to 2017 and from 2017 to 2018.
Estimated time elapsed since purchase	The approximate age in years of a company’s fixed assets. Useful for comparison purposes.	Cisco Systems 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		Cisco Systems Inc.’s estimated remaining life of depreciable property, plant and equipment declined from 2016 to 2017 and from 2017 to 2018.

	Jul 28, 2018	Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013
Selected Financial Data (USD $ in millions)
Accumulated depreciation and amortization	9,237	9,497	9,057	9,095	9,268	9,064
Gross property and equipment	12,243	12,819	12,563	12,427	12,520	12,386
Ratio
Average age¹	75.45%	74.09%	72.09%	73.19%	74.03%	73.18%

Based on: 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09), 10-K (filing date: 2013-09-10).

2018 Calculations

¹ Average age = 100 × Accumulated depreciation and amortization ÷ Gross property and equipment
= 100 × 9,237 ÷ 12,243 = 75.45%

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.	Cisco Systems Inc.’s average age of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.

	Jul 28, 2018	Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013
Selected Financial Data (USD $ in millions)
Gross property and equipment	12,243	12,819	12,563	12,427	12,520	12,386
Depreciation and amortization expenses for property and equipment	1,100	1,100	1,000	1,100	1,200	1,200
Ratio
Estimated total useful life (years)¹	11	12	13	11	10	10

Based on: 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09), 10-K (filing date: 2013-09-10).

2018 Calculations

¹ Estimated total useful life (years) = Gross property and equipment ÷ Depreciation and amortization expenses for property and equipment
= 12,243 ÷ 1,100 = 11

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.	Cisco Systems Inc.’s estimated total useful life of depreciable property, plant and equipment declined from 2016 to 2017 and from 2017 to 2018.

	Jul 28, 2018	Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013
Selected Financial Data (USD $ in millions)
Accumulated depreciation and amortization	9,237	9,497	9,057	9,095	9,268	9,064
Depreciation and amortization expenses for property and equipment	1,100	1,100	1,000	1,100	1,200	1,200
Ratio
Time elapsed since purchase (years)¹	8	9	9	8	8	8

Based on: 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09), 10-K (filing date: 2013-09-10).

2018 Calculations

¹ Time elapsed since purchase (years) = Accumulated depreciation and amortization ÷ Depreciation and amortization expenses for property and equipment
= 9,237 ÷ 1,100 = 8

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

	Jul 28, 2018	Jul 29, 2017	Jul 30, 2016	Jul 25, 2015	Jul 26, 2014	Jul 27, 2013
Selected Financial Data (USD $ in millions)
Property and equipment, net	3,006	3,322	3,506	3,332	3,252	3,322
Depreciation and amortization expenses for property and equipment	1,100	1,100	1,000	1,100	1,200	1,200
Ratio
Estimated remaining life (years)¹	3	3	4	3	3	3

Based on: 10-K (filing date: 2018-09-06), 10-K (filing date: 2017-09-07), 10-K (filing date: 2016-09-08), 10-K (filing date: 2015-09-08), 10-K (filing date: 2014-09-09), 10-K (filing date: 2013-09-10).

2018 Calculations

¹ Estimated remaining life (years) = Property and equipment, net ÷ Depreciation and amortization expenses for property and equipment
= 3,006 ÷ 1,100 = 3

Ratio	Description	The company
Estimated remaining life		Cisco Systems Inc.’s estimated remaining life of depreciable property, plant and equipment declined from 2016 to 2017 and from 2017 to 2018.

Cisco Systems Inc. (CSCO)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Accounting Policy

Property, Plant and Equipment Disclosure

Property, Plant and Equipment Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life