Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age
Estimated Total Useful Life
Estimated Age, Time Elapsed Since Purchase
Estimated Remaining Life

Microsoft Corp., balance sheet: property, plant and equipment

US$ in millions

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Land	5,683)	4,734)	3,660)	1,823)	1,540)	1,254)
Buildings and improvements	68,465)	55,014)	43,928)	33,995)	26,288)	20,604)
Leasehold improvements	8,537)	7,819)	6,884)	5,487)	5,316)	4,735)
Computer equipment and software	74,961)	60,631)	51,250)	41,261)	33,823)	27,633)
Furniture and equipment	6,246)	5,860)	5,344)	4,782)	4,840)	4,457)
Property and equipment, at cost	163,892)	134,058)	111,066)	87,348)	71,807)	58,683)
Accumulated depreciation	(68,251)	(59,660)	(51,351)	(43,197)	(35,330)	(29,223)
Property and equipment, net	95,641)	74,398)	59,715)	44,151)	36,477)	29,460)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

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Item	Description	The company
Property and equipment, at cost	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.	Microsoft Corp. property and equipment, at cost increased from 2021 to 2022 and from 2022 to 2023.
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.	Microsoft Corp. property and equipment, net increased from 2021 to 2022 and from 2022 to 2023.

Microsoft Corp., asset age ratios

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Average age ratio	43.14%	46.13%	47.81%	50.51%	50.28%	50.89%
Estimated total useful life (years)	14	10	12	8	7	7
Estimated age, time elapsed since purchase (years)	6	5	6	4	4	4
Estimated remaining life (years)	8	6	6	4	4	4

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

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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.	Microsoft Corp. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.
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.	Microsoft Corp. estimated total useful life of depreciable property, plant and equipment decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Microsoft Corp. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Estimated remaining life		Microsoft Corp. estimated remaining life of depreciable property, plant and equipment decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Accumulated depreciation	68,251)	59,660)	51,351)	43,197)	35,330)	29,223)
Property and equipment, at cost	163,892)	134,058)	111,066)	87,348)	71,807)	58,683)
Land	5,683)	4,734)	3,660)	1,823)	1,540)	1,254)
Asset Age Ratio
Average age¹	43.14%	46.13%	47.81%	50.51%	50.28%	50.89%

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property and equipment, at cost – Land)
= 100 × 68,251 ÷ (163,892 – 5,683) = 43.14%

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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.	Microsoft Corp. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Property and equipment, at cost	163,892)	134,058)	111,066)	87,348)	71,807)	58,683)
Land	5,683)	4,734)	3,660)	1,823)	1,540)	1,254)
Depreciation expense	11,000)	12,600)	9,300)	10,700)	9,700)	7,700)
Asset Age Ratio (Years)
Estimated total useful life¹	14	10	12	8	7	7

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

¹ Estimated total useful life = (Property and equipment, at cost – Land) ÷ Depreciation expense
= (163,892 – 5,683) ÷ 11,000 = 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.	Microsoft Corp. estimated total useful life of depreciable property, plant and equipment decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Accumulated depreciation	68,251)	59,660)	51,351)	43,197)	35,330)	29,223)
Depreciation expense	11,000)	12,600)	9,300)	10,700)	9,700)	7,700)
Asset Age Ratio (Years)
Time elapsed since purchase¹	6	5	6	4	4	4

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 68,251 ÷ 11,000 = 6

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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.	Microsoft Corp. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Property and equipment, net	95,641)	74,398)	59,715)	44,151)	36,477)	29,460)
Land	5,683)	4,734)	3,660)	1,823)	1,540)	1,254)
Depreciation expense	11,000)	12,600)	9,300)	10,700)	9,700)	7,700)
Asset Age Ratio (Years)
Estimated remaining life¹	8	6	6	4	4	4

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

¹ Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= (95,641 – 5,683) ÷ 11,000 = 8

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Asset age ratio	Description	The company
Estimated remaining life		Microsoft Corp. estimated remaining life of depreciable property, plant and equipment decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Microsoft Corp. (NASDAQ:MSFT)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life