DuPont de Nemours Inc. (NYSE:DD)

The analysis of the property, plant, and equipment financial data over the five-year period reveals notable fluctuations and trends across different asset categories.

Land and Land Improvements

This category showed a consistent increase from 2015 to 2018, rising from 2,137 million USD to 3,472 million USD. However, there was a significant drop in 2019 to 798 million USD, indicating possible disposals or revaluation adjustments during that year.

Buildings

Buildings experienced steady growth from 4,793 million USD in 2015 to 8,723 million USD in 2018, more than doubling over the four-year span. Similar to land improvements, the value decreased sharply in 2019 to 2,775 million USD, suggesting asset write-downs or sales.

Machinery, Equipment, and Other

This line item displayed increasing trends from 39,517 million USD in 2015 to a peak of 59,278 million USD in 2018. In 2019, it decreased drastically to 9,887 million USD, which may reflect major disposals, impairments, or adjustments in asset classification.

Construction in Progress

The value of construction in progress initially increased from 4,355 million USD in 2015 to 6,100 million USD in 2016, then decreased steadily over the following years to 1,652 million USD by 2019. This pattern might indicate the completion and capitalization of projects or a reduction in capital expenditures.

Property, Plant, and Equipment, Gross

The gross property, plant, and equipment balance rose significantly from 50,802 million USD in 2015 to 75,343 million USD in 2018, demonstrating substantial asset additions or acquisitions. However, a steep decline to 15,112 million USD was seen in 2019, aligning with the downward trends in underlying asset categories.

Accumulated Depreciation

Accumulated depreciation increased negatively from -32,948 million USD in 2015 to -39,495 million USD in 2018, which is consistent with ongoing depreciation expense accumulation. In 2019, this figure reduced significantly to -4,969 million USD, possibly reflecting asset disposals or adjustments to the depreciation schedule.

Property, Plant, and Equipment, Net

Net property, plant, and equipment grew considerably from 17,854 million USD in 2015 to 36,247 million USD in 2017, before slightly decreasing to 35,848 million USD in 2018. In 2019, the net value declined sharply to 10,143 million USD, consistent with the reductions observed in gross assets and accumulated depreciation, indicating material asset disposals, impairments, or reclassifications during that period.

The analysis of the annual property, plant, and equipment data reveals several notable trends over the five-year period ending December 31, 2019.

Average Age Ratio (%)

The average age ratio demonstrates a consistent decline from 67.7% in 2015 to 34.71% in 2019. This downward trend suggests that the company's property, plant, and equipment assets are becoming relatively newer over time, indicating significant asset renewal or replacement activity.

Estimated Total Useful Life (in years)

The estimated total useful life experienced a gradual decrease from 26 years in 2015 and 2016 to 14 years in 2019. This reduction could reflect changes in asset mix, technological obsolescence, or revised management estimates regarding the longevity of the assets.

Estimated Age, Time Elapsed Since Purchase (in years)

The estimated age of the assets has also diminished, decreasing from 17 years in 2015 to just 5 years in 2019. This decreasing trend aligns with the observed reduction in the average age ratio, further corroborating the inference of asset renewal or recent acquisitions contributing to a younger asset base.

Estimated Remaining Life (in years)

The estimated remaining life shows some fluctuations, starting at 8 years in 2015, increasing to 12 years in 2017, and then stabilizing around 9 years in 2018 and 2019. This pattern may indicate reassessments of remaining asset life in response to maintenance, refurbishment activities, or changes in asset usage.

Overall, the data indicates a trend towards a younger property, plant, and equipment portfolio with a shortening of the estimated total useful life. The substantial decrease in the average age ratio and estimated age suggests active investment in new assets or replacement of older assets during the period. The relative stability in estimated remaining life in recent years suggests a balancing effect where newer assets are complementing or replacing older ones to maintain operational capacity.

The analysis of the provided property, plant, and equipment data over the five-year period reveals notable trends in asset composition, depreciation, and asset aging.

Accumulated depreciation

The accumulated depreciation shows a generally increasing trend from 32,948 million US$ in 2015 to 39,495 million US$ in 2018, indicating ongoing wear and usage of fixed assets. However, the value sharply declines to 4,969 million US$ in 2019, an anomaly that suggests a possible restatement, asset sale, or reclassification in that year.

Property, plant and equipment, gross

The gross property, plant, and equipment balances increase steadily from 50,802 million US$ in 2015 to 75,343 million US$ in 2018, reflecting asset additions and possibly capital investments. A dramatic decrease to 15,112 million US$ in 2019 parallels the drop in accumulated depreciation, which may indicate significant divestments or reclassification of assets.

Land and land improvements

This category exhibits a general upward trend from 2,137 million US$ in 2015 to 3,472 million US$ in 2018, indicating acquisitions or improvements. It falls sharply to 798 million US$ in 2019, consistent with the significant adjustments noted in the gross and accumulated depreciation figures.

Average age ratio

The average age ratio decreases from 67.7% in 2015 to 54.95% in 2018, suggesting that the asset base was becoming relatively newer, likely due to asset additions or retirements of older equipment. In 2019, the ratio further declines steeply to 34.71%, indicating a substantial renewal of the asset base or possible reclassification that resulted in a younger average asset age.

Overall, the data indicates consistent growth and renewal of fixed assets until 2018, followed by a pronounced adjustment or restructuring in 2019 affecting the reported carrying amounts, accumulated depreciation, and asset age. Such shifts warrant further investigation into the underlying transactions or accounting changes made during that final year.

The data reveals several important trends in the property, plant, and equipment (PP&E) of the company over the period from 2015 to 2019. There is a marked fluctuation in the gross value of PP&E, which increased steadily from 50,802 million US dollars at the end of 2015 to 75,343 million US dollars by the end of 2018, followed by a sharp decline to 15,112 million US dollars in 2019. This significant drop in 2019 indicates either a major divestiture, reclassification, or impairment affecting the asset base.

Land and land improvements also show a steady increase from 2,137 million US dollars in 2015 to 3,472 million US dollars in 2018, before falling substantially to 798 million US dollars in 2019. This pattern aligns with the overall PP&E trend, suggesting possible asset disposals or revaluations affecting land assets specifically in 2019.

Depreciation expense demonstrates a consistent upward trend for the first four years, increasing from 1,908 million US dollars in 2015 to 3,740 million US dollars in 2018. This increase reflects growing depreciation charges associated with the expanding asset base. However, depreciation expense declines significantly to 1,016 million US dollars in 2019, consistent with the reduced gross PP&E and land values, which implies a smaller depreciable asset base that year.

The estimated total useful life of assets decreases progressively from 26 years in 2015 and 2016 to 25 years in 2017, 19 years in 2018, and 14 years in 2019. This shortening of useful life estimates may indicate changes in asset composition, accelerated asset turnover, or revised accounting assumptions for depreciation purposes. The sharp reduction in 2019's estimate supports the observation of substantial asset base changes during that year.

Summary of trends:

1. Gross PP&E rose steadily from 2015 to 2018 before a large decrease occurred in 2019.

2. Land and land improvements followed a similar trend to overall PP&E.

3. Depreciation expense increased alongside asset growth up to 2018, then dropped significantly in 2019.

4. Estimated useful life of assets shortened consistently, with the most pronounced change in 2019.

These observations suggest a significant restructuring or revaluation of the asset base in 2019, impacting both gross property, plant, and equipment values and their associated depreciation calculations.

The financial data pertaining to property, plant, and equipment over the analyzed period reveal several notable trends and changes. The accumulated depreciation exhibits a generally increasing pattern from 2015 through 2018, rising from 32,948 million USD to 39,495 million USD. However, there is an unusual sharp decline in accumulated depreciation in 2019, dropping significantly to 4,969 million USD, which deviates from the prior trend and warrants further investigation.

Depreciation expense demonstrates a steady increase from 1,908 million USD in 2015 to a peak of 3,740 million USD in 2018. This trend indicates escalating depreciation charges, which could be associated with asset base expansion or changes in asset utilization. Similar to accumulated depreciation, there is a marked decrease in depreciation expense in 2019, falling to 1,016 million USD, representing less than one-third of the previous year's expense.

The time elapsed since purchase indicates a clear downward trend, diminishing from 17 years in 2015 to 5 years in 2019. This suggests a significant turnover or replacement of assets, indicating either recent investments in new assets or disposal of older ones, contributing to the younger average asset age.

Accumulated Depreciation

Increased consistently from 2015 to 2018, followed by a pronounced decline in 2019, breaking the trend.

Depreciation Expense

Displayed a gradual increase from 2015 to 2018, peaking in 2018, then experienced a sharp drop in 2019.

Time Elapsed Since Purchase

Consistently decreased every year from 2015 to 2019, indicating a progressively younger asset base.

The combination of a declining average asset age alongside the sudden decreases in both accumulated depreciation and depreciation expense in 2019 suggests potential asset revaluation, disposals, or changes in accounting policies related to depreciation methods or asset classification. These shifts merit further examination to understand their underlying causes and implications on the company's asset management and financial reporting.

The financial data related to property, plant, and equipment exhibits notable variability over the five-year period examined. Several key trends emerge from the analysis:

Net Property, Plant, and Equipment (PPE)

The net PPE value shows a general upward trend from 2015 to 2017, increasing from $17,854 million to a peak of $36,247 million. In 2018, there is a slight decline to $35,848 million, followed by a significant decrease in 2019 to $10,143 million. This sharp reduction in the final year suggests substantial asset disposals, impairments, or reclassifications that affected the net carrying amount.

Land and Land Improvements

The value of land and land improvements mirrors the overall PPE trend to some extent, rising steadily from $2,137 million in 2015 to $3,472 million in 2018. However, a dramatic decline occurs in 2019, dropping to $798 million. This steep fall aligns with the overall decrease in net PPE and may indicate divestment or revaluation of land assets in that year.

Depreciation Expense

Depreciation expense exhibits a consistent increase from $1,908 million in 2015 to $3,740 million in 2018, reflecting either an expansion of asset base or accelerated depreciation methods. In 2019, depreciation expense declines sharply to $1,016 million, consistent with the reduction in the asset base previously noted.

Estimated Remaining Life

The estimated remaining life of the assets fluctuates moderately between 8 and 12 years across the period, with an increase up to 12 years in 2017 followed by a return to 9 years in 2018 and 2019. This variation may reflect changes in asset composition or updated management assumptions regarding asset usability.

Overall, the data suggest a significant expansion in property, plant, and equipment up to 2017, followed by stability in 2018 and a marked contraction in 2019. The concurrent declines in land values and depreciation expense in 2019 corroborate the hypothesis of notable asset reduction activities during that year. The changes in estimated asset life indicate periodic reassessment of asset longevity, which may influence depreciation policies.