Property, plant, and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the lease term. Costs of construction of certain long-lived assets include capitalized interest, which is amortized over the estimated useful life of the related asset. Expenditures for maintenance and repairs which do not materially extend the useful lives of the assets are charged to expense as incurred. The cost and accumulated depreciation or amortization of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in operations. The estimated useful lives of property, plant, and equipment are as follows:

Building and improvements	10–50 years
Laboratory and other equipment	3–10 years
Furniture and fixtures	5 years

Regeneron periodically assesses the recoverability of long-lived assets, such as property, plant, and equipment, and evaluates such assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Source: 10-K (filing date: 2019-02-07).

Regeneron Pharmaceuticals Inc., Statement of Financial Position, Property, Plant and Equipment

USD $ in thousands

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Land	199,000	192,757	103,906	77,826	2,768
Building and improvements	1,507,200	1,441,565	1,278,283	760,517	398,981
Leasehold improvements	97,000	102,599	101,101	95,226	42,600
Construction-in-progress	469,600	408,857	318,929	579,834	472,231
Laboratory and other equipment	773,700	599,153	554,181	330,432	253,058
Furniture, computer and office equipment, and other	258,000	179,968	152,525	81,381	58,655
Property, plant, and equipment, at cost	3,304,500	2,924,899	2,508,925	1,925,216	1,228,293
Accumulated depreciation and amortization	(728,700)	(566,294)	(425,504)	(331,096)	(253,984)
Property, plant, and equipment, net	2,575,800	2,358,605	2,083,421	1,594,120	974,309

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).

Item	Description	The company
Property, plant, 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.	Regeneron Pharmaceuticals Inc.’s property, plant, and equipment, at cost increased from 2016 to 2017 and from 2017 to 2018.
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.	Regeneron Pharmaceuticals Inc.’s property, plant, and equipment, net increased from 2016 to 2017 and from 2017 to 2018.

Regeneron Pharmaceuticals Inc., Property, Plant and Equipment Ratios

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Average age	23.46%	20.73%	17.69%	17.92%	20.72%
Estimated total useful life (years)	22	19	23	25	23
Estimated age, time elapsed since purchase (years)	5	4	4	4	5
Estimated remaining life (years)	16	15	19	20	18

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).

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.	Regeneron Pharmaceuticals Inc.’s average age of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.
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.	Regeneron Pharmaceuticals Inc.’s estimated total useful life of depreciable property, plant and equipment declined from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.
Estimated time elapsed since purchase	The approximate age in years of a company’s fixed assets. Useful for comparison purposes.	Regeneron Pharmaceuticals Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Estimated remaining life		Regeneron Pharmaceuticals Inc.’s estimated remaining life of depreciable property, plant and equipment declined from 2016 to 2017 but then slightly increased from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (USD $ in thousands)
Accumulated depreciation and amortization	728,700	566,294	425,504	331,096	253,984
Property, plant, and equipment, at cost	3,304,500	2,924,899	2,508,925	1,925,216	1,228,293
Land	199,000	192,757	103,906	77,826	2,768
Ratio
Average age¹	23.46%	20.73%	17.69%	17.92%	20.72%

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).

2018 Calculations

¹ Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant, and equipment, at cost – Land)
= 100 × 728,700 ÷ (3,304,500 – 199,000) = 23.46%

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.	Regeneron Pharmaceuticals Inc.’s average age of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (USD $ in thousands)
Property, plant, and equipment, at cost	3,304,500	2,924,899	2,508,925	1,925,216	1,228,293
Land	199,000	192,757	103,906	77,826	2,768
Depreciation and amortization expense on property, plant, and equipment	144,100	142,200	104,700	74,900	52,700
Ratio
Estimated total useful life (years)¹	22	19	23	25	23

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).

2018 Calculations

¹ Estimated total useful life (years) = (Property, plant, and equipment, at cost – Land) ÷ Depreciation and amortization expense on property, plant, and equipment
= (3,304,500 – 199,000) ÷ 144,100 = 22

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.	Regeneron Pharmaceuticals Inc.’s estimated total useful life of depreciable property, plant and equipment declined from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (USD $ in thousands)
Accumulated depreciation and amortization	728,700	566,294	425,504	331,096	253,984
Depreciation and amortization expense on property, plant, and equipment	144,100	142,200	104,700	74,900	52,700
Ratio
Time elapsed since purchase (years)¹	5	4	4	4	5

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).

2018 Calculations

¹ Time elapsed since purchase (years) = Accumulated depreciation and amortization ÷ Depreciation and amortization expense on property, plant, and equipment
= 728,700 ÷ 144,100 = 5

Ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company’s fixed assets. Useful for comparison purposes.	Regeneron Pharmaceuticals Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (USD $ in thousands)
Property, plant, and equipment, net	2,575,800	2,358,605	2,083,421	1,594,120	974,309
Land	199,000	192,757	103,906	77,826	2,768
Depreciation and amortization expense on property, plant, and equipment	144,100	142,200	104,700	74,900	52,700
Ratio
Estimated remaining life (years)¹	16	15	19	20	18

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).

2018 Calculations

¹ Estimated remaining life (years) = (Property, plant, and equipment, net – Land) ÷ Depreciation and amortization expense on property, plant, and equipment
= (2,575,800 – 199,000) ÷ 144,100 = 16

Ratio	Description	The company
Estimated remaining life		Regeneron Pharmaceuticals Inc.’s estimated remaining life of depreciable property, plant and equipment declined from 2016 to 2017 but then slightly increased from 2017 to 2018.

Regeneron Pharmaceuticals Inc. (REGN)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Accounting Policy

Property, Plant and Equipment Disclosure

Property, Plant and Equipment Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life