Kraft Heinz Co., balance sheet: property, plant and equipment

US$ in millions

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Land	210)	218)	250)	264)	297)
Buildings and improvements	2,447)	2,375)	2,232)	1,884)	1,700)
Equipment and other	6,552)	5,904)	5,364)	4,770)	4,432)
Construction in progress	1,033)	1,165)	1,368)	1,600)	1,001)
Property, plant and equipment, gross	10,242)	9,662)	9,214)	8,518)	7,430)
Accumulated depreciation	(3,187)	(2,584)	(2,094)	(1,830)	(906)
Property, plant and equipment, net	7,055)	7,078)	7,120)	6,688)	6,524)

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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.	Kraft Heinz Co. property, plant and equipment, gross increased from 2017 to 2018 and from 2018 to 2019.
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.	Kraft Heinz Co. property, plant and equipment, net decreased from 2017 to 2018 and from 2018 to 2019.

Kraft Heinz Co., asset age ratios

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Average age ratio	31.77%	27.36%	23.36%	22.17%	12.70%
Estimated total useful life (years)	14	14	12	—	—
Estimated age, time elapsed since purchase (years)	5	4	3	—	—
Estimated remaining life (years)	10	10	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.	Kraft Heinz Co. average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
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.	Kraft Heinz Co. estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 and from 2018 to 2019.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Kraft Heinz Co. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
Estimated remaining life		Kraft Heinz Co. estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation	3,187)	2,584)	2,094)	1,830)	906)
Property, plant and equipment, gross	10,242)	9,662)	9,214)	8,518)	7,430)
Land	210)	218)	250)	264)	297)
Asset Age Ratio
Average age¹	31.77%	27.36%	23.36%	22.17%	12.70%

2019 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × 3,187 ÷ (10,242 – 210) = 31.77%

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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.	Kraft Heinz Co. average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross	10,242)	9,662)	9,214)	8,518)	7,430)
Land	210)	218)	250)	264)	297)
Depreciation expense	708)	693)	753)	—)	—)
Asset Age Ratio (Years)
Estimated total useful life¹	14	14	12	—	—

2019 Calculations

¹ Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation expense
= (10,242 – 210) ÷ 708 = 14

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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.	Kraft Heinz Co. estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 and from 2018 to 2019.

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation	3,187)	2,584)	2,094)	1,830)	906)
Depreciation expense	708)	693)	753)	—)	—)
Asset Age Ratio (Years)
Time elapsed since purchase¹	5	4	3	—	—

2019 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 3,187 ÷ 708 = 5

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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.	Kraft Heinz Co. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Property, plant and equipment, net	7,055)	7,078)	7,120)	6,688)	6,524)
Land	210)	218)	250)	264)	297)
Depreciation expense	708)	693)	753)	—)	—)
Asset Age Ratio (Years)
Estimated remaining life¹	10	10	9	—	—

2019 Calculations

¹ Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= (7,055 – 210) ÷ 708 = 10

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Asset age ratio	Description	The company
Estimated remaining life		Kraft Heinz Co. estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Kraft Heinz Co. (NASDAQ:KHC)

Analysis of Property, Plant and Equipment