Paramount Global (NASDAQ:PARA)

Land

The value of land exhibited a substantial increase from 2018 to 2019, more than doubling from $189 million to $439 million. From 2019 onwards, the land value remained relatively stable, with minor decreases in subsequent years, ending at $371 million in 2022, indicating limited acquisition or disposal activity in this asset category after the initial rise.

Buildings

The buildings category showed a significant increase from 2018 to 2019, rising from $795 million to $1,263 million, followed by a slight decline in 2020 to $1,253 million. A notable decrease occurred in 2021, dropping to $842 million, with a small increase to $863 million in 2022. This pattern suggests substantial investment or revaluation in buildings around 2019, followed by asset disposals or impairments in later years.

Equipment and other

Equipment and other assets increased markedly from $1,942 million in 2018 to a peak of $4,310 million in 2020, indicating significant capital expenditure during this period. However, a gradual decline is noted from 2020 through 2022, ending at $4,242 million. This trend might reflect a slowdown in purchases or disposals of equipment and similar assets post-2020.

Property and equipment, gross

Gross property and equipment values roughly doubled from 2018 ($2,926 million) to 2019 ($5,993 million), driven by rises in all asset categories, especially equipment. The figure remained nearly constant into 2020, followed by decreases in 2021 and 2022, settling at $5,476 million. This suggests stabilization and slight contraction in the overall asset base after the significant expansion in 2019.

Accumulated depreciation

Accumulated depreciation deepened significantly between 2018 and 2019, moving from -$1,717 million to -$3,908 million, consistent with the increase in asset base. The rate of increase slowed thereafter, with a peak negative balance in 2020 at -$4,006 million, followed by reductions in 2021 and 2022 to -$3,714 million. The decreasing accumulated depreciation in the latter years may indicate asset disposals or impairments where related accumulated depreciation was derecognized.

Property and equipment, net

Net property and equipment rose substantially from $1,209 million in 2018 to $2,085 million in 2019, reflecting the asset growth exceeding accumulated depreciation. After 2019, net values declined over the next two years to $1,736 million in 2021, before a slight recovery in 2022 to $1,762 million. This trend indicates an overall contraction in net asset carrying values despite earlier substantial investments, likely due to depreciation and asset disposals.

Average Age Ratio

The average age ratio of the property, plant, and equipment exhibited a generally increasing trend from 62.73% in 2018 to a peak of 73.33% in 2021, followed by a slight reduction to 72.75% in 2022. This suggests a gradual aging of the asset base over the analyzed period, indicating that a larger proportion of the assets are closer to the end of their useful life.

Estimated Total Useful Life

The estimated total useful life of the assets increased from 13 years in 2018 to 16 years in 2020, before stabilizing at 15 years in the subsequent two years. This implies a possible adjustment in accounting estimates or asset management practices that extended the expected service life of assets around 2019 and 2020, maintaining a relatively longer asset life thereafter compared to 2018.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets increased steadily from 8 years in 2018 to 12 years in 2020, then experienced a slight decline to 11 years in 2021 and remained consistent in 2022. This pattern could suggest the disposal or replacement of older assets around 2021, which slightly reduced the average age of the asset pool.

Estimated Remaining Life

The estimated remaining life of the property, plant, and equipment fluctuated between 4 and 5 years during the period. It decreased from 5 years in 2018 to 4 years in 2019, rose to 5 years again in 2020, and returned to 4 years in the last two reported years. This variability in remaining life reflects ongoing changes in asset composition, maintenance, replacement policies, or revaluation practices.

Property and Equipment, Gross

The gross value of property and equipment experienced a significant increase from 2018 to 2019, rising from 2,926 million US dollars to 5,993 million US dollars. After 2019, this value remained relatively stable with minor fluctuations, slightly decreasing to 5,000+ million US dollars by 2022.

Accumulated Depreciation

Accumulated depreciation displayed a substantial increase between 2018 and 2019, from 1,717 million US dollars to 3,908 million US dollars. Post 2019, accumulated depreciation values remained relatively stable with a slight decline observed in 2021 and 2022, finishing at 3,714 million US dollars.

Land

The value of land increased notably from 189 million US dollars in 2018 to 439 million US dollars in 2019. Subsequently, the land value underwent a gradual decrease over the following years, ending at 371 million US dollars in 2022.

Average Age Ratio

The average age ratio showed a progressive increase from 62.73% in 2018 to a peak of 73.33% in 2021, indicating an aging asset base. A slight decline was noted in 2022, settling at 72.75%, which still reflects a relatively mature asset profile.

Property and Equipment, Gross

The value of property and equipment, gross, exhibited a significant increase from US$2,926 million in 2018 to US$5,993 million in 2019. Following this peak, the value remained relatively stable with a slight decrease to US$6,000 million in 2020, then declined somewhat in the subsequent years to US$5,486 million in 2021 and US$5,476 million in 2022. Overall, there was a major increase in 2019, with a plateau and moderate decline thereafter.

Land

Land value rose markedly from US$189 million in 2018 to US$439 million in 2019, demonstrating a strong upward shift. It then remained nearly consistent, declining marginally to US$437 million in 2020 and further down to US$372 million and US$371 million in 2021 and 2022 respectively. This suggests that land holdings were augmented substantially in 2019 and then held largely steady with slight decreases.

Depreciation Expense

Depreciation expense showed a clear increase from US$205 million in 2018 to US$366 million in 2019, indicating heightened asset usage or acquisitions. However, from 2019 onwards, depreciation expense gradually declined—from US$345 million in 2020 to US$344 million in 2021 and US$337 million in 2022. This trend may reflect asset base stabilization or adjustments in depreciation policies.

Estimated Total Useful Life (Years)

The estimated useful life of property and equipment increased from 13 years in 2018 to 15 years in 2019, then to 16 years in 2020. It slightly decreased back to 15 years in 2021 and remained stable through 2022. This indicates a reassessment leading to a longer expected asset lifespan around 2020, followed by stabilization.

The analysis of the annual property, plant, and equipment financial data reveals the following key trends over the five-year period ending in 2022.

Accumulated Depreciation

Accumulated depreciation shows a notable increase from 1,717 million USD in 2018 to a peak of 4,006 million USD in 2020. After this peak, there is a gradual decline to 3,750 million USD in 2021 and a further slight decrease to 3,714 million USD in 2022. This pattern may reflect changes in asset disposals, revaluations, or adjustments in depreciation methods over the period.

Depreciation Expense

Depreciation expense rose substantially from 205 million USD in 2018 to 366 million USD in 2019. Subsequently, it slightly decreased and stabilized around the mid-300 million USD range, reporting 345 million USD in 2020, 344 million USD in 2021, and 337 million USD in 2022. This suggests a relatively consistent yearly allocation of depreciation costs after the initial increase.

Time Elapsed Since Purchase (in years)

The average time elapsed since the purchase of assets increased steadily from 8 years in 2018 to 12 years in 2020. Thereafter, it slightly declined and stabilized at 11 years for 2021 and 2022. This trend may indicate a slowing rate of new asset acquisitions or longer retention periods of existing assets in recent years.

Overall, the data suggest that while accumulated depreciation increased significantly until 2020 and then decreased slightly, the depreciation expense stabilized after an initial rise. The duration since acquisition of assets has generally increased, implying aging assets with potential impacts on future capital expenditure and asset replacement policies.

Property and Equipment, Net

The net value of property and equipment demonstrated a significant increase from 2018 to 2019, rising from 1,209 million US dollars to 2,085 million US dollars. This was followed by a gradual decline over the subsequent years, decreasing to 1,994 million in 2020, 1,736 million in 2021, and slightly increasing to 1,762 million in 2022. This suggests an initial period of expansion or acquisition, followed by a period characterized by asset disposals, depreciation, or limited reinvestment.

Land

The value attributed to land assets also showed a marked increase from 2018 to 2019, from 189 million US dollars to 439 million US dollars. Starting from 2019, the land value remained relatively stable, with minor fluctuations leading to values of 437 million in 2020, 372 million in 2021, and 371 million in 2022. This stability indicates limited acquisitions or disposals of land assets after the initial increase.

Depreciation Expense

Depreciation expense increased notably between 2018 and 2019, moving from 205 million to 366 million US dollars. From 2019 onwards, depreciation remained relatively steady with a slight downward trend, recorded at 345 million in 2020, 344 million in 2021, and 337 million in 2022. This trend is consistent with the declining net property and equipment values during the same period, reflecting the annual allocation of asset cost over their useful lives.

Estimated Remaining Life

The estimated remaining useful life of property, plant, and equipment fluctuated between 4 and 5 years during the observed years. It decreased from 5 years in 2018 to 4 years in 2019, increased again to 5 years in 2020, and reduced back to 4 years for both 2021 and 2022. These variations may indicate changes in asset composition or reassessments affecting the expected duration over which assets will be depreciated.