Stock Analysis on Net
Stock Analysis on Net

Allergan PLC (NYSE:AGN)

This company has been moved to the archive! The financial data has not been updated since May 7, 2020.

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Allergan PLC, balance sheet: property, plant and equipment

US$ in thousands

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Machinery and equipment 682,000 590,400 545,300 437,100 1,231,700
Research and laboratory equipment 97,000 67,400 59,000 48,800 171,900
Transportation/Other 643,500 529,600 475,300 381,400 596,000
Land, buildings and leasehold improvements 989,500 911,100 814,900 705,300 1,439,900
Construction in progress 442,400 466,700 507,000 446,100 578,400
Property, plant and equipment, cost 2,854,400 2,565,200 2,401,500 2,018,700 4,017,900
Accumulated depreciation (927,800) (778,200) (616,100) (407,400) (1,088,400)
Property, plant and equipment, net 1,926,600 1,787,000 1,785,400 1,611,300 2,929,500

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
Property, plant and equipment, 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. Allergan PLC property, plant and equipment, 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. Allergan PLC property, plant and equipment, net increased from 2017 to 2018 and from 2018 to 2019.

Asset Age Ratios (Summary)

Allergan PLC, asset age ratios

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Average age ratio 32.50% 30.34% 25.65% 20.18% 27.09%
Estimated total useful life (years) 14 13 14 13 18
Estimated age, time elapsed since purchase (years) 5 4 4 3 5
Estimated remaining life (years) 9 9 10 10 13

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

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 fixed asset base is old or new. Newer assets are likely to be more efficient. Allergan PLC 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 depreciation policy and can be used for comparisons with competitors. Allergan PLC estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Allergan PLC estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
Estimated remaining life Allergan PLC estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Average Age

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Accumulated depreciation 927,800 778,200 616,100 407,400 1,088,400
Property, plant and equipment, cost 2,854,400 2,565,200 2,401,500 2,018,700 4,017,900
Asset Age Ratio
Average age1 32.50% 30.34% 25.65% 20.18% 27.09%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Average age = 100 × Accumulated depreciation ÷ Property, plant and equipment, cost
= 100 × 927,800 ÷ 2,854,400 = 32.50%

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 fixed asset base is old or new. Newer assets are likely to be more efficient. Allergan PLC 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
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, cost 2,854,400 2,565,200 2,401,500 2,018,700 4,017,900
Depreciation expense 204,500 196,300 171,500 155,800 218,300
Asset Age Ratio (Years)
Estimated total useful life1 14 13 14 13 18

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Estimated total useful life = Property, plant and equipment, cost ÷ Depreciation expense
= 2,854,400 ÷ 204,500 = 14

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Allergan PLC estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Accumulated depreciation 927,800 778,200 616,100 407,400 1,088,400
Depreciation expense 204,500 196,300 171,500 155,800 218,300
Asset Age Ratio (Years)
Time elapsed since purchase1 5 4 4 3 5

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 927,800 ÷ 204,500 = 5

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Allergan PLC estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

Estimated Remaining Life

Microsoft Excel
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 1,926,600 1,787,000 1,785,400 1,611,300 2,929,500
Depreciation expense 204,500 196,300 171,500 155,800 218,300
Asset Age Ratio (Years)
Estimated remaining life1 9 9 10 10 13

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Estimated remaining life = Property, plant and equipment, net ÷ Depreciation expense
= 1,926,600 ÷ 204,500 = 9

Asset age ratio Description The company
Estimated remaining life Allergan PLC estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.