Boeing Co., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Land	527	546	530	535	536
Buildings and land improvements	14,288	14,109	14,125	13,796	12,397
Machinery and equipment	15,723	15,221	14,577	13,569	13,187
Construction in progress	1,306	1,337	1,081	1,790	2,242
Gross property, plant and equipment	31,844	31,213	30,313	29,690	28,362
Accumulated depreciation	(19,342)	(18,568)	(17,641)	(16,883)	(16,286)
Property, plant and equipment, net	12,502	12,645	12,672	12,807	12,076

Item	Description	The company
Gross property, plant and equipment	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.	Boeing Co.’s gross property, plant and equipment 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.	Boeing Co.’s property, plant and equipment, net decreased from 2017 to 2018 and from 2018 to 2019.

Boeing Co., asset age ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Average age ratio	61.76%	60.55%	59.23%	57.91%	58.53%
Estimated total useful life (years)	20	20	19	21	21
Estimated age, time elapsed since purchase (years)	12	12	11	12	12
Estimated remaining life (years)	8	8	8	9	9

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’s fixed asset base is old or new. Newer assets are likely to be more efficient.	Boeing Co.’s 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’s depreciation policy and can be used for comparisons with competitors.	Boeing Co.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 and from 2018 to 2019.
Estimated time elapsed since purchase	The approximate age in years of a company’s fixed assets. Useful for comparison purposes.	Boeing Co.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
Estimated remaining life		Boeing Co.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation	19,342	18,568	17,641	16,883	16,286
Gross property, plant and equipment	31,844	31,213	30,313	29,690	28,362
Land	527	546	530	535	536
Asset Age Ratio
Average age¹	61.76%	60.55%	59.23%	57.91%	58.53%

2019 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Gross property, plant and equipment – Land)
= 100 × 19,342 ÷ (31,844 – 527) = 61.76%

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’s fixed asset base is old or new. Newer assets are likely to be more efficient.	Boeing Co.’s average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Gross property, plant and equipment	31,844	31,213	30,313	29,690	28,362
Land	527	546	530	535	536
Depreciation expense	1,567	1,556	1,548	1,418	1,357
Asset Age Ratio (Years)
Estimated total useful life¹	20	20	19	21	21

2019 Calculations

¹ Estimated total useful life = (Gross property, plant and equipment – Land) ÷ Depreciation expense
= (31,844 – 527) ÷ 1,567 = 20

Asset age 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.	Boeing Co.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation	19,342	18,568	17,641	16,883	16,286
Depreciation expense	1,567	1,556	1,548	1,418	1,357
Asset Age Ratio (Years)
Time elapsed since purchase¹	12	12	11	12	12

2019 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 19,342 ÷ 1,567 = 12

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

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Property, plant and equipment, net	12,502	12,645	12,672	12,807	12,076
Land	527	546	530	535	536
Depreciation expense	1,567	1,556	1,548	1,418	1,357
Asset Age Ratio (Years)
Estimated remaining life¹	8	8	8	9	9

2019 Calculations

¹ Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= (12,502 – 527) ÷ 1,567 = 8

Asset age ratio	Description	The company
Estimated remaining life		Boeing Co.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

Boeing Co. (NYSE:BA)

Analysis of Property, Plant and Equipment