Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Mondelēz International Inc. (NASDAQ:MDLZ)

Analysis of Property, Plant and Equipment

Advanced level

Property, Plant and Equipment Disclosure

Mondelēz International Inc., balance sheet: property, plant and equipment

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Land and land improvements 422  424  458  471  495 
Buildings and building improvements 3,140  2,984  2,979  2,801  2,753 
Machinery and equipment 11,295  10,943  11,195  10,302  10,044 
Construction in progress 680  894  1,048  1,113  1,262 
Property, plant and equipment, gross 15,537  15,245  15,680  14,687  14,554 
Accumulated depreciation (6,804) (6,763) (7,003) (6,458) (6,192)
Property, plant and equipment, net 8,733  8,482  8,677  8,229  8,362 

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-19).

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. Mondelēz International Inc.’s property, plant and equipment, gross decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
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. Mondelēz International Inc.’s property, plant and equipment, net decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Asset Age Ratios (Summary)

Mondelēz International Inc., asset age ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Average age ratio 45.01% 45.63% 46.01% 45.43% 44.04%
Estimated total useful life (years) 23 23 24 22 20
Estimated age, time elapsed since purchase (years) 11 11 11 10 9
Estimated remaining life (years) 13 13 13 12 11

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-19).

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’s fixed asset base is old or new. Newer assets are likely to be more efficient. Mondelēz International Inc.’s average age ratio of depreciable property, plant and equipment improved 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’s depreciation policy and can be used for comparisons with competitors. Mondelēz International Inc.’s estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Mondelēz International Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 and from 2018 to 2019.
Estimated remaining life Mondelēz International Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Average Age

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 6,804  6,763  7,003  6,458  6,192 
Property, plant and equipment, gross 15,537  15,245  15,680  14,687  14,554 
Land and land improvements 422  424  458  471  495 
Asset Age Ratio
Average age1 45.01% 45.63% 46.01% 45.43% 44.04%

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-19).

2019 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land and land improvements)
= 100 × 6,804 ÷ (15,537 – 422) = 45.01%

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’s fixed asset base is old or new. Newer assets are likely to be more efficient. Mondelēz International Inc.’s average age ratio of depreciable property, plant and equipment improved from 2017 to 2018 and from 2018 to 2019.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross 15,537  15,245  15,680  14,687  14,554 
Land and land improvements 422  424  458  471  495 
Depreciation expense 645  635  638  647  713 
Asset Age Ratio (Years)
Estimated total useful life1 23 23 24 22 20

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-19).

2019 Calculations

1 Estimated total useful life = (Property, plant and equipment, gross – Land and land improvements) ÷ Depreciation expense
= (15,537 – 422) ÷ 645 = 23

Asset age 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. Mondelēz International Inc.’s estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 6,804  6,763  7,003  6,458  6,192 
Depreciation expense 645  635  638  647  713 
Asset Age Ratio (Years)
Time elapsed since purchase1 11 11 11 10 9

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-19).

2019 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 6,804 ÷ 645 = 11

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Mondelēz International Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 and from 2018 to 2019.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 8,733  8,482  8,677  8,229  8,362 
Land and land improvements 422  424  458  471  495 
Depreciation expense 645  635  638  647  713 
Asset Age Ratio (Years)
Estimated remaining life1 13 13 13 12 11

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-19).

2019 Calculations

1 Estimated remaining life = (Property, plant and equipment, net – Land and land improvements) ÷ Depreciation expense
= (8,733 – 422) ÷ 645 = 13

Asset age ratio Description The company
Estimated remaining life Mondelēz International Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.