AstraZeneca PLC, balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Land and buildings	4,912)	5,683)	5,850)	5,911)	5,699)
Plant and equipment	7,712)	8,453)	8,645)	8,779)	9,293)
Assets in course of construction	1,120)	771)	576)	620)	591)
Property, plant and equipment, cost	13,744)	14,907)	15,071)	15,310)	15,583)
Accumulated depreciation	(7,734)	(9,089)	(8,982)	(8,885)	(8,626)
Property, plant and equipment, net book value	6,010)	5,818)	6,089)	6,425)	6,957)

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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.	AstraZeneca PLC property, plant and equipment, cost decreased from 2012 to 2013 and from 2013 to 2014.
Property, plant and equipment, net book value	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.	AstraZeneca PLC property, plant and equipment, net book value decreased from 2012 to 2013 but then increased from 2013 to 2014 not reaching 2012 level.

AstraZeneca PLC, asset age ratios

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Average age ratio	56.27%	60.97%	59.60%	58.03%	55.36%
Estimated total useful life (years)	18	15	15	14	14
Estimated age, time elapsed since purchase (years)	10	9	9	8	8
Estimated remaining life (years)	8	6	6	6	6

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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.	AstraZeneca PLC average age ratio of depreciable property, plant and equipment deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.
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.	AstraZeneca PLC estimated total useful life of depreciable property, plant and equipment increased from 2012 to 2013 and from 2013 to 2014.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	AstraZeneca PLC estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2012 to 2013 and from 2013 to 2014.
Estimated remaining life		AstraZeneca PLC estimated remaining life of depreciable property, plant and equipment decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (US$ in millions)
Accumulated depreciation	7,734)	9,089)	8,982)	8,885)	8,626)
Property, plant and equipment, cost	13,744)	14,907)	15,071)	15,310)	15,583)
Asset Age Ratio
Average age¹	56.27%	60.97%	59.60%	58.03%	55.36%

2014 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ Property, plant and equipment, cost
= 100 × 7,734 ÷ 13,744 = 56.27%

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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.	AstraZeneca PLC average age ratio of depreciable property, plant and equipment deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (US$ in millions)
Property, plant and equipment, cost	13,744)	14,907)	15,071)	15,310)	15,583)
Depreciation, charge for year and impairment	776)	1,007)	1,023)	1,086)	1,098)
Asset Age Ratio (Years)
Estimated total useful life¹	18	15	15	14	14

2014 Calculations

¹ Estimated total useful life = Property, plant and equipment, cost ÷ Depreciation, charge for year and impairment
= 13,744 ÷ 776 = 18

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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.	AstraZeneca PLC estimated total useful life of depreciable property, plant and equipment increased from 2012 to 2013 and from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (US$ in millions)
Accumulated depreciation	7,734)	9,089)	8,982)	8,885)	8,626)
Depreciation, charge for year and impairment	776)	1,007)	1,023)	1,086)	1,098)
Asset Age Ratio (Years)
Time elapsed since purchase¹	10	9	9	8	8

2014 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation, charge for year and impairment
= 7,734 ÷ 776 = 10

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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.	AstraZeneca PLC estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2012 to 2013 and from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (US$ in millions)
Property, plant and equipment, net book value	6,010)	5,818)	6,089)	6,425)	6,957)
Depreciation, charge for year and impairment	776)	1,007)	1,023)	1,086)	1,098)
Asset Age Ratio (Years)
Estimated remaining life¹	8	6	6	6	6

2014 Calculations

¹ Estimated remaining life = Property, plant and equipment, net book value ÷ Depreciation, charge for year and impairment
= 6,010 ÷ 776 = 8

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Asset age ratio	Description	The company
Estimated remaining life		AstraZeneca PLC estimated remaining life of depreciable property, plant and equipment decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.

AstraZeneca PLC (NYSE:AZN)

Analysis of Property, Plant and Equipment