Colgate-Palmolive Co. (CL)

Land, buildings and machinery and equipment are stated at cost. Depreciation is provided, primarily using the straight-line method, over estimated useful lives ranging from 3 to 15 years for machinery and equipment and up to 40 years for buildings. Depreciation attributable to manufacturing operations is included in Cost of sales. The remaining component of depreciation is included in Selling, general and administrative expenses.

Source: Colgate-Palmolive Co., Annual Report

Colgate-Palmolive Co., Statement of Financial Position, Property, Plant and Equipment

USD $ in millions

Source: Based on data from Colgate-Palmolive Co. Annual Reports

Item	Description	The company
Land	Carrying amount as of the balance sheet date of real estate held for productive use. This excludes land held for sale.	Colgate-Palmolive Co.'s land declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
Buildings	Carrying amount as of the balance sheet date of long-lived, depreciable assets that include building structures held for productive use including any addition, improvement, or renovation to the structure, such as interior masonry, interior flooring, electrical, and plumbing.	Colgate-Palmolive Co.'s buildings increased from 2015 to 2016 and from 2016 to 2017.
Manufacturing 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.	Colgate-Palmolive Co.'s manufacturing machinery and equipment declined from 2015 to 2016 but then increased from 2016 to 2017 not reaching 2015 level.
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.	Colgate-Palmolive Co.'s property, plant and equipment, cost declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
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.	Colgate-Palmolive Co.'s property, plant and equipment, net increased from 2015 to 2016 and from 2016 to 2017.

Colgate-Palmolive Co., 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.	Colgate-Palmolive Co.'s average age 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
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.	Colgate-Palmolive Co.'s average age of depreciable property, plant and equipment improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.