Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age
Estimated Total Useful Life
Estimated Age, Time Elapsed Since Purchase
Estimated Remaining Life

Generac Holdings Inc., balance sheet: property, plant and equipment

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Land and improvements	26,137)	18,363)	18,252)	15,975)	13,118)
Buildings and improvements	244,272)	198,908)	177,079)	163,161)	132,072)
Machinery and equipment	186,611)	153,696)	117,114)	103,726)	90,487)
Dies and tools	31,581)	24,190)	22,040)	28,198)	24,504)
Vehicles	7,621)	6,037)	3,955)	2,070)	1,878)
Office equipment and systems	125,048)	107,923)	99,124)	82,638)	73,254)
Leasehold improvements	5,679)	5,276)	4,293)	2,137)	2,436)
Construction in progress	47,602)	30,227)	36,299)	26,543)	18,799)
Gross property and equipment	674,551)	544,620)	478,156)	424,448)	356,548)
Accumulated depreciation	(233,699)	(200,684)	(161,180)	(145,519)	(126,168)
Property and equipment, net	440,852)	343,936)	316,976)	278,929)	230,380)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Download chart

Item	Description	The company
Gross property 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.	Generac Holdings Inc. gross property and equipment increased from 2019 to 2020 and from 2020 to 2021.
Property 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.	Generac Holdings Inc. property and equipment, net increased from 2019 to 2020 and from 2020 to 2021.

Generac Holdings Inc., asset age ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Average age ratio	36.04%	38.13%	35.05%	35.63%	36.74%
Estimated total useful life (years)	15	14	14	16	15
Estimated age, time elapsed since purchase (years)	6	5	5	6	5
Estimated remaining life (years)	10	9	9	10	9

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Download chart

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 fixed asset base is old or new. Newer assets are likely to be more efficient.	Generac Holdings Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Generac Holdings Inc. estimated total useful life of depreciable property, plant and equipment increased from 2019 to 2020 and from 2020 to 2021.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Generac Holdings Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.
Estimated remaining life		Generac Holdings Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Accumulated depreciation	233,699)	200,684)	161,180)	145,519)	126,168)
Gross property and equipment	674,551)	544,620)	478,156)	424,448)	356,548)
Land and improvements	26,137)	18,363)	18,252)	15,975)	13,118)
Asset Age Ratio
Average age¹	36.04%	38.13%	35.05%	35.63%	36.74%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Gross property and equipment – Land and improvements)
= 100 × 233,699 ÷ (674,551 – 26,137) = 36.04%

Download chart

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 fixed asset base is old or new. Newer assets are likely to be more efficient.	Generac Holdings Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Gross property and equipment	674,551)	544,620)	478,156)	424,448)	356,548)
Land and improvements	26,137)	18,363)	18,252)	15,975)	13,118)
Depreciation expense	42,155)	36,493)	32,265)	25,296)	23,127)
Asset Age Ratio (Years)
Estimated total useful life¹	15	14	14	16	15

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Estimated total useful life = (Gross property and equipment – Land and improvements) ÷ Depreciation expense
= (674,551 – 26,137) ÷ 42,155 = 15

Download chart

Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Generac Holdings Inc. estimated total useful life of depreciable property, plant and equipment increased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Accumulated depreciation	233,699)	200,684)	161,180)	145,519)	126,168)
Depreciation expense	42,155)	36,493)	32,265)	25,296)	23,127)
Asset Age Ratio (Years)
Time elapsed since purchase¹	6	5	5	6	5

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 233,699 ÷ 42,155 = 6

Download chart

Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Generac Holdings Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Property and equipment, net	440,852)	343,936)	316,976)	278,929)	230,380)
Land and improvements	26,137)	18,363)	18,252)	15,975)	13,118)
Depreciation expense	42,155)	36,493)	32,265)	25,296)	23,127)
Asset Age Ratio (Years)
Estimated remaining life¹	10	9	9	10	9

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Estimated remaining life = (Property and equipment, net – Land and improvements) ÷ Depreciation expense
= (440,852 – 26,137) ÷ 42,155 = 10

Download chart

Asset age ratio	Description	The company
Estimated remaining life		Generac Holdings Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Generac Holdings Inc. (NYSE:GNRC)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life