Allergan PLC (AGN)

Property, plant and equipment are stated at cost, less accumulated depreciation. Major renewals and improvements are capitalized, while routine maintenance and repairs are expensed as incurred. Allergan capitalizes interest on qualified construction projects. At the time property, plant and equipment are retired from service, the cost and accumulated depreciation is removed from the respective accounts.

Depreciation expense is computed principally on the straight-line method, over the estimated useful lives of the related assets. The following table provides the range of estimated useful lives used for each asset type:

Computer software/hardware (including internally developed)	3-10 years
Machinery and equipment	3-15 years
Research and laboratory equipment	3-10 years
Furniture and fixtures	3-10 years
Buildings, improvements, leasehold improvements and other	4-50 years
Transportation equipment	3-20 years

Allergan assesses property, plant and equipment for impairment whenever events or changes in circumstances indicate that an asset's carrying amount may not be recoverable.

Source: Allergan PLC, Annual Report

Allergan PLC, Statement of Financial Position, Property, Plant and Equipment

USD $ in thousands

Source: Based on data from Allergan PLC Annual Reports

Item	Description	The company
Machinery and equipment	Carrying amount as of the balance sheet date of long-lived, depreciable asset used in production process to produce goods and services.	Allergan PLC's machinery and equipment declined from 2015 to 2016 but then slightly increased from 2016 to 2017.
Construction in progress	Carrying amount at the balance sheet date of long-lived asset under construction that include construction costs to date on capital projects that have not been completed and assets being constructed that are not ready to be placed into service.	Allergan PLC's construction in progress declined from 2015 to 2016 but then slightly increased from 2016 to 2017.
Property, plant and equipment, cost	Carrying amount at the balance sheet date for long-lived physical assets used in the normal conduct of business and not intended for resale. This can include land, physical structures, machinery, vehicles, furniture, computer equipment, construction in progress, and similar items. Amount does not include depreciation.	Allergan PLC's property, plant and equipment, cost declined from 2015 to 2016 but then slightly increased from 2016 to 2017.
Property, plant and equipment, net	Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment.	Allergan PLC's property, plant and equipment, net declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

Allergan PLC, Property, Plant and Equipment Ratios

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.	Allergan PLC's average age of depreciable property, plant and equipment improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.
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.	Allergan PLC's estimated total useful life of depreciable property, plant and equipment declined from 2015 to 2016 but then slightly increased from 2016 to 2017.
Estimated time elapsed since purchase	The approximate age in years of a company's fixed assets. Useful for comparison purposes.	Allergan PLC's estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
Estimated remaining life		Allergan PLC's estimated remaining life of depreciable property, plant and equipment declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

2017 Calculations

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.	Allergan PLC's average age of depreciable property, plant and equipment improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.

2017 Calculations

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.	Allergan PLC's estimated total useful life of depreciable property, plant and equipment declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

2017 Calculations

Ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company's fixed assets. Useful for comparison purposes.	Allergan PLC's estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

2017 Calculations

Ratio	Description	The company
Estimated remaining life		Allergan PLC's estimated remaining life of depreciable property, plant and equipment declined from 2015 to 2016 but then slightly increased from 2016 to 2017.