Keurig Dr Pepper Inc., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Land	50)	54)	55)	138)
Buildings and improvements	793)	520)	473)	723)
Machinery and equipment	2,369)	1,870)	1,636)	1,412)
Cold drink equipment	89)	80)	78)	276)
Software	404)	315)	241)	231)
Construction-in-progress	138)	393)	274)	206)
Property, plant and equipment, gross	3,843)	3,232)	2,757)	2,986)
Accumulated depreciation and amortization	(1,349)	(1,020)	(729)	(676)
Property, plant and equipment, net	2,494)	2,212)	2,028)	2,310)

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Item	Description	The company
Property, plant and equipment, gross	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.	Keurig Dr Pepper Inc. property, plant and equipment, gross increased from 2019 to 2020 and from 2020 to 2021.
Property, plant 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.	Keurig Dr Pepper Inc. property, plant and equipment, net increased from 2019 to 2020 and from 2020 to 2021.

Keurig Dr Pepper Inc., asset age ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Average age ratio	35.57%	32.10%	26.98%	23.74%
Estimated total useful life (years)	9	9	8	12
Estimated age, time elapsed since purchase (years)	3	3	2	3
Estimated remaining life (years)	6	6	6	9

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Asset age ratio	Description	The company
Average age ratio	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 fixed asset base is old or new. Newer assets are likely to be more efficient.	Keurig Dr Pepper Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Keurig Dr Pepper Inc. estimated total useful life of depreciable property, plant and equipment increased from 2019 to 2020 and from 2020 to 2021.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Keurig Dr Pepper Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.
Estimated remaining life		Keurig Dr Pepper Inc. estimated remaining life of depreciable property, plant and equipment increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization	1,349)	1,020)	729)	676)
Property, plant and equipment, gross	3,843)	3,232)	2,757)	2,986)
Land	50)	54)	55)	138)
Asset Age Ratio
Average age¹	35.57%	32.10%	26.98%	23.74%

2021 Calculations

¹ Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, gross – Land)
= 100 × 1,349 ÷ (3,843 – 50) = 35.57%

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Asset age 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 fixed asset base is old or new. Newer assets are likely to be more efficient.	Keurig Dr Pepper Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross	3,843)	3,232)	2,757)	2,986)
Land	50)	54)	55)	138)
Depreciation expense	410)	362)	358)	233)
Asset Age Ratio (Years)
Estimated total useful life¹	9	9	8	12

2021 Calculations

¹ Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation expense
= (3,843 – 50) ÷ 410 = 9

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Keurig Dr Pepper Inc. estimated total useful life of depreciable property, plant and equipment increased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization	1,349)	1,020)	729)	676)
Depreciation expense	410)	362)	358)	233)
Asset Age Ratio (Years)
Time elapsed since purchase¹	3	3	2	3

2021 Calculations

¹ Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation expense
= 1,349 ÷ 410 = 3

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Keurig Dr Pepper Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Property, plant and equipment, net	2,494)	2,212)	2,028)	2,310)
Land	50)	54)	55)	138)
Depreciation expense	410)	362)	358)	233)
Asset Age Ratio (Years)
Estimated remaining life¹	6	6	6	9

2021 Calculations

¹ Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= (2,494 – 50) ÷ 410 = 6

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Asset age ratio	Description	The company
Estimated remaining life		Keurig Dr Pepper Inc. estimated remaining life of depreciable property, plant and equipment increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Keurig Dr Pepper Inc. (NASDAQ:KDP)

Analysis of Property, Plant and Equipment