NXP Semiconductors N.V. (NASDAQ:NXPI)

Land

The value of land remained relatively stable over the observed period, fluctuating slightly between US$164 million and US$166 million without showing significant growth or decline.

Buildings

Buildings exhibited a steady increase in value, rising from US$1,200 million in 2017 to US$1,465 million in 2021. This represents consistent investment or revaluation, with a noticeable annual growth that suggests ongoing development or improvement of building assets.

Machinery and installations

This category showed robust growth throughout the period, increasing from US$3,179 million in 2017 to US$4,457 million in 2021. The continued upward trajectory indicates substantial investments likely aimed at expanding or modernizing production capacity.

Other equipment

Other equipment values also increased steadily, from US$453 million in 2017 to US$802 million in 2021. The growth rate, although less pronounced than machinery, remains consistent, reflecting incremental additions or upgrades in this asset category.

Prepayments and construction in progress

This line item exhibited greater volatility, rising from US$172 million in 2017 to US$278 million in 2018, followed by a decline to US$210 million in 2020 and a subsequent increase to US$423 million in 2021. The fluctuations suggest timing differences in capital projects, with significant ongoing investments nearing completion or initiation in the final year.

Property, plant and equipment, cost

The aggregate cost of property, plant, and equipment increased steadily from US$5,170 million in 2017 to US$7,311 million in 2021. This upward trend aligns with increases across individual asset classes, indicating overall expansion in capital assets.

Accumulated depreciation

Accumulated depreciation grew consistently each year, moving from -US$2,875 million in 2017 to -US$4,676 million in 2021. This steady increase reflects ongoing usage and aging of assets, aligned with standard depreciation accounting practices.

Property, plant and equipment, net of accumulated depreciation

The net property, plant, and equipment values showed less consistent movement, rising from US$2,295 million in 2017 to US$2,448 million in 2019, before experiencing a decline to US$2,284 million in 2020, then rebounding to US$2,635 million in 2021. This pattern suggests that depreciation charges and asset additions were largely balanced, although the dip in 2020 may indicate increased depreciation or fewer asset additions in that year. The recovery in 2021 points to renewed investment or asset value appreciation.

Average Age Ratio

The average age ratio exhibits an upward trend from 57.45% in 2017 to a peak of 66.66% in 2020, followed by a slight decline to 65.43% in 2021. This indicates a general aging of the property, plant, and equipment over the analyzed period, with a marginal improvement in asset freshness towards the end.

Estimated Total Useful Life

The estimate of total useful life increased notably from 8 years in 2017 to 12 years in 2018 and remained stable through 2020. In 2021, there was a further increase to 13 years. This suggests a reassessment or extension of the expected operational lifespan of the assets, reflecting potentially improved durability or changes in asset management policies.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of assets increased steadily from 5 years in 2017 to 8 years in 2020, then remained constant in 2021. This steady aging aligns with the average age ratio trends and suggests consistent retention of assets without significant replacement or disposal activity in recent years.

Estimated Remaining Life

The estimated remaining life shows an increase from 3 years in 2017 to 5 years in 2018, followed by a decrease to 4 years from 2019 through 2021. This pattern indicates an initial extension in asset usability, possibly due to asset additions or improved maintenance, but a stabilization or slight reduction in remaining useful life subsequently.

Property, Plant, and Equipment Cost

The cost of property, plant, and equipment demonstrated a consistent upward trend from 2017 through 2021. Starting at $5,170 million in 2017, the value rose each year, reaching $7,311 million by the end of 2021. This increase indicates ongoing investment and expansion in the company’s tangible fixed assets over the period analyzed.

Accumulated Depreciation

Accumulated depreciation similarly increased steadily from $2,875 million in 2017 to $4,676 million in 2021. This rise reflects the aging and usage of the company’s property, plant, and equipment over time, which is consistent with the rising asset base and suggests normal wear and tear depreciation of assets in use.

Land

The value attributed to land remained virtually stable during this timeframe, fluctuating slightly between $164 million and $166 million annually. This stability is expected, as land typically does not depreciate or change significantly in value within short periods under normal accounting practice.

Average Age Ratio

The average age ratio, expressed as a percentage, showed an increasing pattern from 57.45% in 2017 to a peak of 66.66% in 2020, followed by a slight decrease to 65.43% in 2021. The rising ratio suggests that the property, plant, and equipment are growing older on average, reflecting the accumulation of assets over time and a possible deceleration in asset replacement or acquisition pace relative to depreciation.

Property, Plant, and Equipment Cost

There is a consistent upward trend in the cost of property, plant, and equipment over the five-year period. The cost increased from US$5,170 million at the end of 2017 to US$7,311 million by the end of 2021, representing a significant total increase of approximately 41.3%. This growth suggests ongoing investment in fixed assets, reflecting either expansion, upgrades, or replacement of assets.

Land

The value of land remained relatively stable throughout the period, fluctuating marginally between US$164 million and US$166 million. This stability indicates no major acquisition or disposal of land assets during these years.

Depreciation of Property, Plant, and Equipment

Depreciation expenses exhibit variability but maintain a generally stable level after an initial decline from US$611 million in 2017 to US$478 million in 2018. This was followed by a moderate increase to US$551 million by 2021. The depreciation trend aligns with asset additions but also suggests adjustments in depreciation methods or asset composition.

Estimated Total Useful Life

The estimated total useful life of property, plant, and equipment rose from 8 years in 2017 to 13 years in 2021. This increase may reflect changes in asset composition, improvements in asset durability, or revisions to accounting estimates regarding asset longevity.

Overall, the data indicate a deliberate and steady expansion of asset base, with cost increases outpacing depreciation, supporting growth or modernization initiatives. Stable land values imply limited changes in real estate holdings, while the rising useful life estimate suggests more sustained asset utilization or conservative depreciation policies over the analyzed period.

Accumulated Depreciation

The accumulated depreciation exhibits a consistent upward trend over the analyzed period, increasing from $2,875 million at the end of 2017 to $4,676 million by the end of 2021. This steady rise reflects ongoing depreciation charges on the property, plant, and equipment assets and suggests a growing asset base or sustained capital expenditures over these years.

Depreciation Expense

Annual depreciation expenses fluctuate moderately across the five-year span. It starts at $611 million in 2017, decreases significantly to $478 million in 2018, and then gradually increases to $518 million in 2019, $547 million in 2020, and $551 million in 2021. This pattern indicates variations in asset acquisitions, disposals, or changes in depreciation policy, with a general stabilization and slight increase in depreciation expense in the later years.

Time Elapsed Since Purchase

The average time elapsed since the purchase of these assets increases from 5 years in 2017 to 8 years by 2020 and remains constant through 2021. This suggests that the asset base is aging, potentially indicating fewer recent acquisitions or a shift towards maintaining existing assets rather than significant new investments in property, plant, and equipment.

Summary

Overall, the data shows an expanding accumulated depreciation balance parallel with a slight increase and stabilization in annual depreciation expense. The increase in the average asset age over the period implies a maturing asset portfolio. Together, these trends may reflect a strategy focused on optimizing current assets with moderate new investments. The relatively stable depreciation expense despite aging assets could also point to efficient asset management or the introduction of assets with longer useful lives.

Property, Plant, and Equipment, Net of Accumulated Depreciation

The net value of property, plant, and equipment exhibited a generally stable trend from 2017 through 2020, with figures ranging from approximately 2,284 million to 2,448 million US dollars. However, there was a noticeable increase in 2021, reaching 2,635 million US dollars. This indicates a possible investment in fixed assets or slower depreciation relative to additions during the final year analyzed.

Land

The value assigned to land remained essentially constant throughout the period, fluctuating minimally between 164 million and 166 million US dollars. This stability suggests that there were no significant acquisitions or disposals of land in these years.

Depreciation of Property, Plant, and Equipment

Depreciation expenses showed variability, beginning at 611 million US dollars in 2017, followed by a sharp decline to 478 million in 2018. This was succeeded by an increase in depreciation charges to 518 million in 2019, a further rise to 547 million in 2020, and a slight increase to 551 million in 2021. The initial drop may be attributed to asset disposals or changes in depreciation policy, while the subsequent rises signal increasing consumption of assets or acquisition of new depreciable assets.

Estimated Remaining Life of Property, Plant, and Equipment

The estimated remaining useful life showed an increase from 3 years in 2017 to 5 years in 2018, before settling at 4 years in 2019 and remaining stable through 2021. The initial increase suggests a revision or extension of asset lifespans, while the later stability implies a consistent asset aging profile.