Allergan Inc. (NYSE:AGN.)

The financial data for property, plant, and equipment over the five-year period from 2010 to 2014 demonstrates a consistent upward trend across most categories, reflecting ongoing investments and asset growth.

Land

The value of land remained relatively stable in the first four years, with a minor increase from 58,900 thousand US dollars in 2010 and 2011 to 62,200 thousand US dollars in 2013. A more significant increase occurred in 2014, reaching 71,200 thousand US dollars, which indicates possible acquisition or revaluation activities.

Buildings

Buildings showed a steady growth throughout the period, starting at 773,600 thousand US dollars in 2010 and rising to 1,066,100 thousand US dollars by 2014. This consistent increase suggests continuous capital expenditure on construction or acquisition of facilities.

Machinery and Equipment

Machinery and equipment values also increased each year, from 614,800 thousand US dollars in 2010 to 844,000 thousand US dollars in 2014. This growth indicates investment in production capacity or upgrades to existing equipment.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment reflects a steady expansion from 1,447,300 thousand US dollars in 2010 to 1,981,300 thousand US dollars in 2014. This upward trajectory aligns with the increases seen individually in land, buildings, and machinery and equipment.

Accumulated Depreciation

Accumulated depreciation increased each year, starting from a negative 646,700 thousand US dollars in 2010 to negative 975,000 thousand US dollars in 2014. The steady rise in accumulated depreciation is consistent with ongoing asset usage and aging, partially offsetting the gross asset base.

Property, Plant, and Equipment, Net

The net property, plant, and equipment value progressed from 800,600 thousand US dollars in 2010 to 1,006,300 thousand US dollars in 2014, showing a clear upward trend. The net increase reflects that asset additions outpaced the impact of depreciation over the period, indicating expansion and modernization of the asset base.

Overall, the data exhibits a pattern of consistent growth and asset investment, with capital expenditures exceeding depreciation, resulting in an increasing net asset position over the five-year span.

The analysis of the average age ratio of property, plant, and equipment over a five-year period reveals a consistent upward trend. Starting at 46.58% at the end of 2010, the ratio gradually increased each subsequent year, reaching 51.04% by the end of 2014. This steady rise suggests that the company's fixed assets have been aging over the period in question.

The increment from 46.58% to 51.04% over the five years indicates a gradual accumulation of older assets or a slower rate of asset replacement. This could imply that the company has maintained its assets for longer periods, potentially reflecting a strategy of maximizing asset use or limited investment in new property, plant, and equipment during this timeframe.

There are no abrupt fluctuations or reversals in the trend, which points to stability in the company's asset management policy regarding the longevity of its tangible fixed assets. This consistency in increasing average age ratio can have implications for future capital expenditure needs, as older assets may require more maintenance or eventual replacement to sustain operational efficiency.

Accumulated Depreciation

The accumulated depreciation shows a consistent upward trend over the five-year period. Starting at $646.7 million at the end of 2010, it increased steadily each year to reach $975 million by the end of 2014. This gradual rise indicates ongoing usage and aging of the property, plant, and equipment assets, reflecting normal wear and tear as well as systematic allocation of depreciation expense.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment exhibits continuous growth throughout the observed period. Beginning at $1.4473 billion in 2010, it increased annually to $1.9813 billion by 2014. This consistent increase suggests ongoing investments and capital expenditures to expand or upgrade the asset base, supporting operational capacity or modernization efforts.

Land

Land values remain relatively stable with minor increases over the period. Starting at $58.9 million in 2010, the value was largely flat through 2011 at the same level, then increased modestly to $61.9 million in 2012 and reached $71.2 million by 2014. The gradual increase might reflect acquisitions of new land parcels or appreciation in land value.

Average Age Ratio (%)

The average age ratio of the property, plant, and equipment shows a slow but steady upward movement, rising from 46.58% in 2010 to 51.04% in 2014. This indicates that the asset base is aging gradually over time, despite increases in gross asset values. It suggests that the pace of new asset acquisitions may be slightly lagging compared to the rate at which accumulated depreciation is accumulating, affecting the overall age profile of the assets.