Constellation Brands Inc. (NYSE:STZ)

Overall Property, Plant, and Equipment (PPE) Gross Value

The gross value of property, plant, and equipment demonstrated a consistent upward trend from 5,209,800 thousand USD in February 2017 to 8,011,900 thousand USD in February 2022. This increase reflects ongoing investments in fixed assets over the period, with the exception of a slight decline observed in February 2020 compared to the previous year.

Land and Land Improvements

Values for land and land improvements increased moderately from 400,400 thousand USD in 2017 to 456,200 thousand USD in 2022. The metric showed periods of minor fluctuation, particularly a slight decrease in 2020 and 2021 relative to prior years, but overall maintained growth.

Vineyards

Investment in vineyards experienced a declining trend from 232,600 thousand USD in 2017 to a low in 215,800 thousand USD in 2020, followed by recovery and growth reaching 255,300 thousand USD in 2022. This indicates a potential period of reduced capital allocation or asset revaluation before an expansion phase.

Buildings and Improvements

Buildings and improvements showed a general increase from 736,100 thousand USD in 2017 to 1,109,400 thousand USD in 2022. A peak was noted in 2019 at 1,067,300 thousand USD, with a dip in 2020 and subsequent recovery, highlighting ongoing capital expenditure in infrastructure assets.

Machinery and Equipment

This category displayed a substantial increase overall, rising from 3,079,600 thousand USD in 2017 to 4,827,800 thousand USD in 2022. After steady growth until 2019, a decrease occurred in 2020, likely reflecting asset disposals or depreciation outpacing additions, followed by a sharp increase by 2022, suggesting significant reinvestment or acquisition of machinery and equipment.

Motor Vehicles

Motor vehicles values fluctuated, declining from 124,200 thousand USD in 2017 to 81,800 thousand USD in 2019, before rising to 140,000 thousand USD in 2022. This pattern reflects an initial reduction potentially due to disposals or decreased purchases, with recovery signaling renewed investment in this asset class.

Construction in Progress

There was a notable upward trend in construction in progress from 636,900 thousand USD in 2017 to a peak of 2,084,200 thousand USD in 2021, followed by a decrease to 1,223,200 thousand USD in 2022. This suggests an accumulation of ongoing projects reaching completion around 2021, with a drawdown in unfinished projects in the subsequent year.

Accumulated Depreciation

Accumulated depreciation increased in magnitude each year, moving from -1,277,000 thousand USD in 2017 to -1,952,300 thousand USD in 2022, consistent with aging asset bases and continued consumption of asset value. An unusual drop in accumulated depreciation in 2020 likely due to asset write-offs or revaluation adjustments was observed, followed by resumption of the increasing trend.

Net Property, Plant, and Equipment

The net PPE value, calculated as gross PPE less accumulated depreciation, showed steady growth from 3,932,800 thousand USD in 2017 to 6,059,600 thousand USD in 2022. Growth was more subdued in 2019 and 2020 but accelerated in later years, reflecting the net effect of asset acquisitions, disposals, and depreciation dynamics over the analyzed periods.

Average Age Ratio

The average age ratio shows fluctuations over the six-year period. Starting at 26.55% in 2017, it slightly decreases to 25.43% in 2018, then marginally rises to 26.17% in 2019. It reaches its lowest point of 22.96% in 2020, indicating a relatively younger asset base during that year. However, the ratio increases again in subsequent years, moving to 24.35% in 2021 and further to 25.84% in 2022, suggesting a gradual aging of the property, plant, and equipment (PP&E) assets after 2020.

Estimated Total Useful Life

The estimated total useful life of the assets remains stable at 20 years from 2017 through 2019. In 2020, there is a decrease to 19 years, which may imply a reassessment or change in asset longevity assumptions. Subsequently, the estimated useful life increases significantly to 24 years in 2021, before slightly decreasing to 22 years in 2022. These changes suggest some reassessment or extensions in asset lifespan expectations starting in 2021.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets remains consistent at 5 years from 2017 through 2019, then decreases to 4 years in 2020. This reduction could reflect asset retirements or new acquisitions impacting the average age. From 2021 onward, the estimated age increases to 6 years and remains at that level in 2022, indicating a period with fewer new asset additions or aging of existing assets.

Estimated Remaining Life

The estimated remaining life shows a slight decrease from 15 years in 2017 and 2018 to 14 years in 2019, likely related to the corresponding decline in total useful life in 2020. However, it recovers to 15 years in 2020, then increases notably to 18 years in 2021 and moderates slightly to 17 years in 2022. This pattern aligns with the increase in estimated total useful life during 2021 and 2022, reflecting an extension in the anticipated service period of the PP&E assets.

Accumulated Depreciation

There is a general increasing trend in accumulated depreciation over the analyzed period. The amount risen from 1,277,000 thousand US dollars in 2017 to 1,952,300 thousand US dollars in 2022. Notably, there is a decrease observed in 2020 to 1,458,200 thousand US dollars from 1,705,200 thousand US dollars in 2019, followed by a recovery and further increase in subsequent years. This suggests irregular depreciation or asset disposals during that year.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment generally grows from 5,209,800 thousand US dollars in 2017 to 8,011,900 thousand US dollars in 2022. Despite a slight decline in 2020 compared to 2019, the overall upward trajectory indicates ongoing investments and additions to the fixed asset base over the years.

Land and Land Improvements

The value of land and land improvements oscillates moderately without a clear trend. Starting at 400,400 thousand US dollars in 2017, it peaks at 456,700 thousand in 2019, declines slightly in 2020 and 2021, and rises again to 456,200 thousand US dollars in 2022. The fluctuations are minor in comparison to other asset categories, reflecting relatively stable land asset holdings.

Average Age Ratio

The average age ratio, expressed as a percentage, fluctuates modestly throughout the period. It begins at 26.55% in 2017, decreases to its lowest value of 22.96% in 2020, before rising again to 25.84% in 2022. This pattern likely reflects periods of asset replacement or acquisition, with a lower average age indicating relatively newer assets during the 2020 period followed by gradual aging thereafter.

The data reveals a series of trends concerning property, plant, and equipment (PP&E) metrics over the six-year period from February 2017 to February 2022.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment shows an overall upward trajectory. Starting at approximately 5.21 billion USD in early 2017, it rises steadily to about 8.01 billion USD by early 2022. There is an observed slight dip between 2019 and 2020, where the figure decreased from roughly 6.97 billion USD to 6.79 billion USD, possibly indicative of asset disposals or reduced acquisition during that period. Subsequently, the value resumed growth, reaching a peak in 2022.

Land and Land Improvements

The value of land and land improvements remains relatively stable throughout the period, fluctuating modestly around a range of 400 million to 460 million USD. After an initial increase from 400.4 million USD in 2017 to a high of 456.7 million USD in 2019, a slight decline is noted through 2021 before recovering again to 456.2 million USD in 2022. This relative stability may reflect infrequent transactions or depreciable adjustments specific to land assets.

Depreciation

Depreciation expense exhibits some variability without a clear upward or downward trend. It increased from 237.5 million USD in 2017 to a high of 333.1 million USD in 2019, then declined slightly in 2020 and 2021 to 326.5 million USD and 293.8 million USD, respectively, before rising once more to 337.3 million USD in 2022. These fluctuations could be associated with asset acquisition timings, changes in depreciation policies, or asset retirements.

Estimated Total Useful Life

The estimated total useful life of assets shows a degree of inconsistency, starting consistently at 20 years from 2017 to 2019, shortening to 19 years in 2020, then extending notably to 24 years in 2021 and moderating to 22 years in 2022. Such changes imply reassessments of asset durability or accounting policy adjustments affecting depreciation schedules.

In summary, the data indicates a general expansion of the property, plant, and equipment base with a relatively stable land asset base. Depreciation trends suggest variable expense recognition possibly aligned with acquisition and disposal activities, while changes in estimated useful life reflect evolving asset management or accounting practices.

Accumulated Depreciation

The accumulated depreciation exhibits a general upward trend from 1,277,000 thousand USD in February 2017 to 1,952,300 thousand USD in February 2022. Notably, there is a temporary decline observed in February 2020, decreasing from 1,705,200 thousand USD in 2019 to 1,458,200 thousand USD, before increasing again in subsequent years. This fluctuation may suggest asset disposals or revaluations during that period.

Depreciation Expense

Depreciation expense generally rises from 237,500 thousand USD in 2017 to 337,300 thousand USD in 2022. The highest annual depreciation occurred in 2019 at 333,100 thousand USD and again in 2022 reaching 337,300 thousand USD. There is a slight decrease in depreciation expense in 2021 compared to previous years, indicating potential changes in asset base or useful life estimates.

Time Elapsed Since Purchase

The average time elapsed since purchase of property, plant, and equipment remains relatively stable at 5 years from 2017 through 2019, decreases to 4 years in 2020, and then increases back to 6 years in 2021 and remains at 6 years in 2022. This pattern suggests additions or replacements of assets occurred in 2020 and subsequent years, affecting the average age of the asset base.

Overall Insights

The data reflects ongoing investment and depreciation activities within the property, plant, and equipment segment. The decline in accumulated depreciation in 2020, combined with a drop in time elapsed since purchase, points to asset renewal or disposal actions. Depreciation expense fluctuations indicate varying asset aging and possibly changing depreciation policies or useful life assumptions. The gradual increase in accumulated depreciation aligns with continuous asset utilization and aging.

Property, Plant, and Equipment, Net

Over the six-year period, the net value of property, plant, and equipment exhibited a consistent upward trend. It increased from approximately $3.93 billion in fiscal year 2017 to around $6.06 billion by fiscal year 2022. This growth reflects ongoing investments or revaluations in the company's fixed assets, with notably steady increases year over year, albeit at a moderating pace between 2019 and 2020.

Land and Land Improvements

The value of land and land improvements showed moderate fluctuations during this timeframe. Starting at $400.4 million in 2017, there was an increase to $456.7 million in 2019, followed by a slight decline to $434.0 million in 2021 before rising again to $456.2 million in 2022. These variations may indicate selective land acquisitions or disposals, or reclassifications impacting this asset category.

Depreciation

Depreciation expenses rose from $237.5 million in 2017 to a peak of $337.3 million in 2022, reflecting ongoing asset usage and capital expenditure patterns. The increase was generally steady except for a slight reduction in 2021 to $293.8 million, which might suggest changes in asset base composition, useful life adjustments, or variations in depreciation methods.

Estimated Remaining Life

The estimated remaining useful life of the assets was relatively stable, beginning at 15 years in 2017 and remaining close to that range throughout the period. Notably, it decreased slightly to 14 years in 2019, before increasing to 18 years in 2021 and then slightly adjusting to 17 years in 2022. These shifts could reflect reassessments of asset longevity or maintenance practices impacting asset lifecycle expectations.