Corning Inc. (NYSE:GLW)

Land

The value of land showed a decreasing trend over the five-year period. It started at $452 million in 2019 and declined steadily each year, reaching $412 million by the end of 2023. This represents a gradual reduction in land assets.

Buildings

Building values increased from $6,023 million in 2019 to a peak of $6,453 million in 2020, followed by a consistent decline through to 2023, ending at $5,931 million. This indicates some divestment or depreciation exceeding capital investment after 2020.

Equipment

Equipment values generally increased from $19,100 million in 2019 to a peak of $21,208 million in 2021. However, the value slightly decreased in 2022 to $20,800 million and then modestly increased to $20,896 million in 2023, indicating minor fluctuations but overall growth compared to 2019.

Construction in progress

Values for construction in progress decreased from $2,757 million in 2019 to $1,918 million in 2020, remained fairly stable through 2021 and 2023 with a slight increase in 2022 to $2,335 million. The fluctuating values suggest varying levels of ongoing capital projects during these years.

Property, plant and equipment (gross)

The gross property, plant, and equipment value gradually increased from $28,332 million in 2019 to a peak of $29,773 million in 2021. It then declined slightly in subsequent years, falling to $29,183 million by 2023, demonstrating moderate growth with some recent reduction.

Accumulated depreciation

Accumulated depreciation consistently increased in magnitude (became more negative) from -$12,995 million in 2019 to -$14,553 million in 2023, reflecting ongoing asset usage and aging over time. This steady rise in depreciation is typical for aging property, plant, and equipment.

Property, plant and equipment (net)

The net value of property, plant, and equipment increased slightly from $15,337 million in 2019 to $15,804 million in 2021. It then declined consistently over the following two years, reaching $14,630 million in 2023. This suggests that while gross asset additions occurred, net asset value was affected by accelerated depreciation or asset disposals in the most recent years.

The analysis of the property, plant, and equipment data reveals several noteworthy trends over the five-year period ending December 31, 2023.

Average Age Ratio (%)

The average age ratio demonstrates a steady increase from 46.61% in 2019 to 50.58% in 2023. This gradual rise indicates that the company's assets are aging consistently over time, with a higher proportion of the total estimated useful life being utilized each year.

Estimated Total Useful Life (years)

The estimated total useful life of the assets shows a slight upward trend, increasing from 20 years in 2019 to 23 years by 2023. This suggests that either the company's assessment of asset longevity has become more optimistic or improvements in asset quality/maintenance have extended their expected lifespan.

Estimated Age (years)

The estimated age, reflecting time elapsed since purchase, increases as expected from 9 years in 2019 to 12 years in 2023. This progressive aging aligns with the passage of time and supports the observed increase in the average age ratio.

Estimated Remaining Life (years)

The estimated remaining life remains constant at 11 years throughout the entire period. Despite the aging of assets, the consistent remaining life suggests that the total useful life estimates are increasing proportionately, maintaining a balanced outlook on asset usability going forward.

Overall, the data indicates a stable asset aging profile with gradual improvements or reassessments in asset life expectancy. The company appears to maintain a consistent approach in estimating remaining life, with a cautious but positive adjustment in total useful life assessments over time.

Accumulated Depreciation

The accumulated depreciation has shown a steady increase over the five-year period. Beginning at 12,995 million US dollars in 2019, it rose consistently each year to reach 14,553 million US dollars by the end of 2023. This upward trend indicates continuous depreciation expense recognized against the company's property, plant, and equipment assets.

Property, Plant and Equipment, Gross

The gross value of property, plant, and equipment experienced slight fluctuations during the period. Starting at 28,332 million US dollars in 2019, it increased to a peak of 29,773 million in 2021. However, from 2021 onward, the value declined gradually to 29,183 million US dollars by 2023. This pattern suggests a period of asset acquisition followed by limited new investments or possible disposals or impairments affecting the asset base.

Land

The value of land held decreased steadily each year from 452 million US dollars in 2019 to 412 million US dollars in 2023. The consistent decrease over time may indicate disposals of land assets or revaluation adjustments.

Average Age Ratio

The average age ratio of the assets has been gradually increasing throughout the period. From 46.61% in 2019, it climbed each year, reaching 50.58% in 2023. This rising trend suggests that the asset base is aging, and there may be fewer recent asset additions offsetting older assets, which aligns with the observed decline in gross property, plant, and equipment after 2021.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment exhibited a modest increase from 2019 to 2021, rising from $28,332 million to $29,773 million. However, this upward trend reversed slightly in the subsequent years, declining to $29,518 million in 2022 and further to $29,183 million in 2023. Overall, the asset base remained relatively stable with limited fluctuations throughout the period.

Land

The recorded value of land demonstrated a gradual downward trend over the five-year span. Beginning at $452 million in 2019, it decreased steadily each year, reaching $412 million by the end of 2023. This consistent reduction may indicate disposals or revaluations of land assets.

Depreciation Expense

Depreciation expense showed a gradual but continuous decrease over the observed period, starting from $1,390 million in 2019 and declining to $1,247 million in 2023. This reduction could be associated with the aging of assets and changes in the depreciation schedule or useful life estimates.

Estimated Total Useful Life

The estimated total useful life of property, plant, and equipment exhibited a consistent upward trend, increasing from 20 years in 2019 to 23 years in 2023. This suggests that the company is revising asset longevity assumptions, possibly reflecting improved asset durability or changes in maintenance practices.

Accumulated Depreciation

The accumulated depreciation shows a consistent upward trend over the five-year period, increasing from $12,995 million in 2019 to $14,553 million in 2023. This indicates ongoing accumulation of depreciation on property, plant, and equipment, reflecting the aging of assets and continued use.

Depreciation Expense

Depreciation expense exhibits a slight decreasing trend, declining from $1,390 million in 2019 to $1,247 million in 2023. This gradual reduction suggests that the company may be experiencing lower depreciation charges annually, potentially due to fewer new asset additions or changes in depreciation methods or asset mix.

Time Elapsed Since Purchase

The average age of the assets, indicated by the time elapsed since purchase, increased steadily from 9 years in 2019 to 12 years in 2023. This progression confirms that the asset base is aging, consistent with the increase in accumulated depreciation and the declining annual depreciation expense.

Property, plant and equipment, net of accumulated depreciation

The net value of property, plant, and equipment exhibited a mild upward trend from 2019 to 2021, increasing from 15,337 million US dollars to a peak of 15,804 million US dollars. However, this was followed by a decline in the subsequent two years, falling to 15,371 million in 2022 and further down to 14,630 million in 2023. Overall, the net book value decreased by approximately 707 million US dollars over the five-year period, suggesting potential asset disposals or depreciation outpacing capital expenditures in the latter years.

Land

The value of land remained relatively stable but demonstrated a slight downward trend from 452 million US dollars in 2019 to 412 million US dollars in 2023. This decline of 40 million US dollars might reflect disposals or reevaluations of land assets. Given land is generally non-depreciable, the movement likely reflects changes in asset holdings rather than depreciation.

Depreciation expense

Depreciation expense displayed a consistent decline over the period, starting at 1,390 million US dollars in 2019 and reducing each year to 1,247 million US dollars in 2023. This gradual reduction, totaling a decrease of 143 million US dollars, indicates either slower asset usage, a shift in asset composition towards items with longer useful lives, or reduced capital investments in depreciable assets.

Estimated remaining life

The estimated remaining life of the property, plant, and equipment remained constant at 11 years throughout the entire period, indicating stability in the asset lifecycle assumptions used for depreciation calculations.