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

Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

Analysis of Property, Plant and Equipment

Advanced level

Property, Plant and Equipment Disclosure

Regeneron Pharmaceuticals Inc., balance sheet: property, plant and equipment

US$ in thousands

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Land 230,800  199,000  192,757  103,906  77,826 
Building and improvements 1,683,400  1,507,200  1,441,565  1,278,283  760,517 
Leasehold improvements 97,600  97,000  102,599  101,101  95,226 
Construction-in-progress 644,800  469,600  408,857  318,929  579,834 
Laboratory and other equipment 850,700  773,700  599,153  554,181  330,432 
Computer equipment and software 183,700  145,800  —  —  — 
Furniture, office equipment, and other 121,800  112,200  179,968  152,525  81,381 
Property, plant, and equipment, at cost 3,812,800  3,304,500  2,924,899  2,508,925  1,925,216 
Accumulated depreciation and amortization (922,400) (728,700) (566,294) (425,504) (331,096)
Property, plant, and equipment, net 2,890,400  2,575,800  2,358,605  2,083,421  1,594,120 

Based on: 10-K (filing date: 2020-02-07), 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).

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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.

Asset Age Ratios (Summary)

Regeneron Pharmaceuticals 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 25.75% 23.46% 20.73% 17.69% 17.92%
Estimated total useful life (years) 17 22 19 23 25
Estimated age, time elapsed since purchase (years) 4 5 4 4 4
Estimated remaining life (years) 13 16 15 19 20

Based on: 10-K (filing date: 2020-02-07), 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).

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. Regeneron Pharmaceuticals Inc.’s average age ratio of depreciable property, plant and equipment deteriorated 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. Regeneron Pharmaceuticals Inc.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Estimated remaining life Regeneron Pharmaceuticals Inc.’s estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Average Age

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Accumulated depreciation and amortization 922,400  728,700  566,294  425,504  331,096 
Property, plant, and equipment, at cost 3,812,800  3,304,500  2,924,899  2,508,925  1,925,216 
Land 230,800  199,000  192,757  103,906  77,826 
Asset Age Ratio
Average age1 25.75% 23.46% 20.73% 17.69% 17.92%

Based on: 10-K (filing date: 2020-02-07), 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).

2019 Calculations

1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant, and equipment, at cost – Land)
= 100 × 922,400 ÷ (3,812,800 – 230,800) = 25.75%

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. Regeneron Pharmaceuticals Inc.’s average age ratio of depreciable property, plant and equipment deteriorated 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 thousands)
Property, plant, and equipment, at cost 3,812,800  3,304,500  2,924,899  2,508,925  1,925,216 
Land 230,800  199,000  192,757  103,906  77,826 
Depreciation and amortization expense on property, plant, and equipment 205,200  144,100  142,200  104,700  74,900 
Asset Age Ratio (Years)
Estimated total useful life1 17 22 19 23 25

Based on: 10-K (filing date: 2020-02-07), 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).

2019 Calculations

1 Estimated total useful life = (Property, plant, and equipment, at cost – Land) ÷ Depreciation and amortization expense on property, plant, and equipment
= (3,812,800 – 230,800) ÷ 205,200 = 17

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. Regeneron Pharmaceuticals Inc.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly 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 thousands)
Accumulated depreciation and amortization 922,400  728,700  566,294  425,504  331,096 
Depreciation and amortization expense on property, plant, and equipment 205,200  144,100  142,200  104,700  74,900 
Asset Age Ratio (Years)
Time elapsed since purchase1 4 5 4 4 4

Based on: 10-K (filing date: 2020-02-07), 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).

2019 Calculations

1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation and amortization expense on property, plant, and equipment
= 922,400 ÷ 205,200 = 4

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. Regeneron Pharmaceuticals Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

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 thousands)
Property, plant, and equipment, net 2,890,400  2,575,800  2,358,605  2,083,421  1,594,120 
Land 230,800  199,000  192,757  103,906  77,826 
Depreciation and amortization expense on property, plant, and equipment 205,200  144,100  142,200  104,700  74,900 
Asset Age Ratio (Years)
Estimated remaining life1 13 16 15 19 20

Based on: 10-K (filing date: 2020-02-07), 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).

2019 Calculations

1 Estimated remaining life = (Property, plant, and equipment, net – Land) ÷ Depreciation and amortization expense on property, plant, and equipment
= (2,890,400 – 230,800) ÷ 205,200 = 13

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