Air Products & Chemicals Inc. (NYSE:APD)

Land

There is a consistent upward trend in the value of land over the six-year period, increasing from $226.2 million in 2015 to $296.8 million in 2020. This represents a steady annual growth, indicating ongoing acquisition or revaluation of land assets.

Buildings

The value of buildings shows variability without a clear upward or downward trajectory. It increased slightly from $1.08 billion in 2015 to $1.12 billion in 2016, then declined to $977.8 million in 2017, followed by minor fluctuations, finishing at $997.8 million in 2020. Overall, building assets exhibit relative stability with a slight downward tendency after 2016.

Production Facilities

Investment in production facilities demonstrates strong growth throughout the period, rising from $12.82 billion in 2015 to $17.29 billion in 2020. The most significant increase is observed between 2017 and 2018, suggesting major capital expenditures in this category during that time frame.

Distribution and Other Machinery and Equipment

This category remains relatively stable from 2015 to 2017, fluctuating around $3.9 to $4.04 billion. Beginning 2018, there is a noticeable upward trend, with values increasing to $4.81 billion by 2020. This indicates an expansion or upgrade of machinery and equipment assets in recent years.

Construction in Progress

Construction in progress shows a decline from $2.27 billion in 2015 to $818 million in 2017, followed by a slight decrease in 2018. From 2018 onwards, values increase again, reaching $1.78 billion in 2020. The initial decline may reflect completion of projects, whereas the later rise suggests initiation of new capital projects.

Plant and Equipment, at Cost

The total cost basis for plant and equipment decreases marginally from $20.35 billion in 2015 to $19.55 billion in 2017. However, it then experiences consistent growth post-2017, reaching $25.18 billion in 2020. This pattern aligns with the trends in production facilities and machinery investments, indicating renewed capital spending.

Accumulated Depreciation

Accumulated depreciation steadily increases (in absolute terms) from -$10.72 billion in 2015 to -$13.21 billion in 2020. The steady rise in depreciation reflects ongoing aging and usage of the property, plant, and equipment over the years.

Plant and Equipment, Net

The net plant and equipment value experiences a decline from $9.64 billion in 2015 to $8.44 billion in 2017. From 2017, a strong recovery occurs, with net value increasing to $11.96 billion by 2020. This suggests that capital investments since 2017 have outpaced depreciation, leading to an enhanced asset base.

Average age ratio

The average age ratio showed an increasing trend from 53.25% in 2015 to a peak of 57.5% in 2017. Following this, it declined gradually to 53.1% by 2020. This indicates that the asset base became slightly older up to 2017, after which a marginal rejuvenation or replacement of assets likely occurred.

Estimated total useful life

The estimated total useful life of property, plant, and equipment was relatively stable over the period, fluctuating slightly between 21 and 23 years. It started at 22 years in 2015, rose to 23 years during 2017 and 2018, then decreased to 21 years in 2019 before returning to 22 years in 2020. This suggests consistent assumptions regarding asset longevity with minor adjustments.

Estimated age, time elapsed since purchase

The estimated asset age increased from 12 years in 2015 to 13 years in both 2016 and 2017, then decreased back to 11 years by 2019 and 2020. This pattern implies that older assets were gradually replaced or supplemented with newer acquisitions starting after 2017, reducing the average asset age by the end of the period reviewed.

Estimated remaining life

The estimated remaining life remained steady at 10 years throughout the entire period, reflecting consistent assumptions regarding asset durability and the balance between asset age and total useful life.

Plant and Equipment at Cost

The value of plant and equipment at cost exhibited fluctuations over the period analyzed. Initially, it decreased from approximately 20.35 billion USD in 2015 to roughly 19.55 billion USD in 2017. Subsequently, it showed a consistent upward trend, increasing to about 21.49 billion USD in 2018, 22.33 billion USD in 2019, and culminating at approximately 25.18 billion USD by 2020. This pattern suggests a phase of asset reduction or depreciation in the early years followed by renewed investment or acquisitions in later years.

Accumulated Depreciation

The accumulated depreciation steadily increased throughout the entire period, starting from approximately 10.72 billion USD in 2015 and reaching roughly 13.21 billion USD in 2020. Although there was a slight decline from 11.34 billion USD in 2016 to 11.11 billion USD in 2017, the general trend indicates a growing amount of depreciation, reflecting aging assets or increased depreciation expenses consistent with the assets held.

Land

Land values showed a continuous increase from about 226.2 million USD in 2015 to nearly 296.8 million USD in 2020. This steady growth likely represents acquisitions of land or revaluations that enhance the asset base over time.

Average Age Ratio

The average age ratio, indicative of the relative age of the property, plant, and equipment, increased from 53.25% in 2015 to a peak of 57.5% in 2017. From 2018 onwards, the ratio declined gradually to 53.1% in 2020. This trend points to an initial aging of assets, followed by a relative rejuvenation, possibly due to recent capital expenditures or asset replacements reflected in the increased plant and equipment cost during the latter years.

Plant and equipment, at cost

The value of plant and equipment at cost exhibited a fluctuating trend over the six-year period. Starting at approximately $20.35 billion in 2015, the value declined slightly in 2016 and continued to decrease through 2017, reaching around $19.55 billion. However, from 2018 onwards, there was a consistent upward trend, culminating in a peak value of about $25.18 billion in 2020. The overall movement suggests a phase of divestment or reduced capital expenditure during 2016-2017, followed by renewed investment or acquisitions starting in 2018.

Land

The land asset value showed a steady increase throughout the time frame. Beginning at $226.2 million in 2015, the value rose incrementally each year, reaching $296.8 million by 2020. This consistent growth indicates ongoing acquisitions or appreciation in land holdings, reflecting either strategic expansion or increased land valuation over time.

Depreciation expense

Depreciation expense demonstrated a mostly upward trajectory across the years. Initially reported at $900.4 million in 2015, it saw a slight decrease to $893 million in 2016 and then a more noticeable decline to $843.2 million in 2017. Subsequently, depreciation expense increased substantially, reaching $1.15 billion in 2020. This pattern could correlate with the fluctuations in asset base, with lower depreciation coinciding with reduced asset values around 2016-2017 and higher depreciation aligning with asset growth post-2017.

Estimated total useful life

The estimated total useful life of the assets remained relatively stable, fluctuating between 21 and 23 years. Beginning at 22 years in 2015 and 2016, it increased slightly to 23 years in 2017 and 2018, before decreasing to 21 years in 2019 and returning to 22 years in 2020. These minor variations suggest periodic reassessments of asset longevity, possibly reflecting changes in asset composition or updated depreciation policies.

The analysis of the property, plant, and equipment data reveals several notable trends over the period from 2015 to 2020.

Accumulated Depreciation

This metric generally shows an increasing trend, rising from approximately 10.7 billion US dollars in 2015 to 13.2 billion US dollars in 2020. This steady accumulation indicates ongoing depreciation of the asset base, which is consistent with normal wear and tear over time. Notably, there was a slight dip in 2017 compared to 2016, but the overall trajectory resumes its upward trend thereafter.

Depreciation Expense

The depreciation expense fluctuated throughout the period. Starting at 900.4 million US dollars in 2015, it marginally declined in 2016 and 2017 to 893.0 million and 843.2 million respectively. However, there was a reversal beginning in 2018 where depreciation expense increased to 940.7 million, followed by a continued rise to 1.05 billion in 2019 and 1.15 billion in 2020. This upward calibration in recent years suggests either increased depreciation rates or additions to the asset base that accelerated expense recognition.

Time Elapsed Since Purchase

The average age of assets, measured in years since purchase, remained relatively stable, fluctuating between 11 and 13 years. It was 12 years in 2015 and increased to 13 years in 2016 and 2017, before decreasing to 11 years in 2019 and 2020. This pattern may reflect asset turnover, with newer acquisitions or asset retirements affecting the average age.

Overall, the data indicate sustained investment in property, plant, and equipment, with a growing base of accumulated depreciation reflecting the aging asset pool. The increase in depreciation expense in the later years could signal higher capital expenditures or adjustments in depreciation methods or rates. The relative stability in asset age suggests consistent management of asset replacement cycles.

Plant and Equipment, Net

The net value of plant and equipment showed a declining trend from 2015 to 2017, decreasing from approximately $9,636,900 thousand to $8,440,200 thousand. Starting in 2018, this trend reversed with notable increases each year, rising to $9,923,700 thousand in 2018, $10,337,600 thousand in 2019, and reaching $11,964,700 thousand by 2020. This suggests a phase of asset divestiture or depreciation exceeding capital investments through 2017, followed by renewed investment or asset acquisitions from 2018 onwards.

Land

The value of land assets exhibited a consistent upward trend over the period. Beginning at $226,200 thousand in 2015, land values increased steadily each year, reaching $296,800 thousand in 2020. This reveals a gradual accumulation or revaluation of land holdings, reflecting either expansion efforts or appreciation of existing land assets.

Depreciation Expense

Depreciation expenses remained relatively stable between 2015 and 2017, fluctuating slightly around the $843,200 thousand to $900,400 thousand range. From 2018 onwards, depreciation expense increased steadily, moving from $940,700 thousand in 2018 up to $1,150,500 thousand in 2020. This upward trend aligns with the increased net plant and equipment values, indicating growing depreciation charges associated with higher asset bases.

Estimated Remaining Life

The estimated remaining life of the assets consistently remained at 10 years throughout the entire period analyzed, suggesting no changes in asset lifespan assumptions or major reclassifications impacting asset longevity.