General Motors Co., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Land	1,302	1,349	1,647	1,645	1,636
Buildings and improvements	9,705	9,173	7,471	6,655	5,562
Machinery and equipment	29,814	26,453	23,915	22,855	19,338
Special tools	23,586	23,828	21,113	10,932	9,576
Construction in progress	3,042	4,680	6,188	5,347	4,633
Property, gross	43,863	41,655	39,221	36,502	31,169
Accumulated depreciation	(28,699)	(26,725)	(24,081)	(11,614)	(9,516)
Property, net	38,750	38,758	36,253	35,820	31,229

Item	Description	The company
Property, gross	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.	General Motors Co.’s property, gross increased from 2017 to 2018 and from 2018 to 2019.
Property, 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.	General Motors Co.’s property, net increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

General Motors Co., asset age ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Average age ratio	67.43%	66.31%	64.09%	33.32%	32.22%
Estimated total useful life (years)	7	8	8	7	7
Estimated age, time elapsed since purchase (years)	4	5	5	2	2
Estimated remaining life (years)	6	7	7	7	7

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’s fixed asset base is old or new. Newer assets are likely to be more efficient.	General Motors Co.’s average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors.	General Motors Co.’s estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.
Estimated time elapsed since purchase	The approximate age in years of a company’s fixed assets. Useful for comparison purposes.	General Motors Co.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Estimated remaining life		General Motors Co.’s estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation	28,699	26,725	24,081	11,614	9,516
Property, gross	43,863	41,655	39,221	36,502	31,169
Land	1,302	1,349	1,647	1,645	1,636
Asset Age Ratio
Average age¹	67.43%	66.31%	64.09%	33.32%	32.22%

2019 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property, gross – Land)
= 100 × 28,699 ÷ (43,863 – 1,302) = 67.43%

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’s fixed asset base is old or new. Newer assets are likely to be more efficient.	General Motors Co.’s average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Property, gross	43,863	41,655	39,221	36,502	31,169
Land	1,302	1,349	1,647	1,645	1,636
Depreciation and amortization expense	6,541	5,347	4,966	5,015	4,251
Asset Age Ratio (Years)
Estimated total useful life¹	7	8	8	7	7

2019 Calculations

¹ Estimated total useful life = (Property, gross – Land) ÷ Depreciation and amortization expense
= (43,863 – 1,302) ÷ 6,541 = 7

Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors.	General Motors Co.’s estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation	28,699	26,725	24,081	11,614	9,516
Depreciation and amortization expense	6,541	5,347	4,966	5,015	4,251
Asset Age Ratio (Years)
Time elapsed since purchase¹	4	5	5	2	2

2019 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation and amortization expense
= 28,699 ÷ 6,541 = 4

Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company’s fixed assets. Useful for comparison purposes.	General Motors Co.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Property, net	38,750	38,758	36,253	35,820	31,229
Land	1,302	1,349	1,647	1,645	1,636
Depreciation and amortization expense	6,541	5,347	4,966	5,015	4,251
Asset Age Ratio (Years)
Estimated remaining life¹	6	7	7	7	7

2019 Calculations

¹ Estimated remaining life = (Property, net – Land) ÷ Depreciation and amortization expense
= (38,750 – 1,302) ÷ 6,541 = 6

Asset age ratio	Description	The company
Estimated remaining life		General Motors Co.’s estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

General Motors Co. (NYSE:GM)

Analysis of Property, Plant and Equipment