Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Lockheed Martin Corp. (NYSE:LMT)

Analysis of Property, Plant and Equipment

Advanced level

Property, Plant and Equipment Disclosure

Lockheed Martin Corp., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Land 142  136  135  131  127 
Buildings 7,425  7,013  6,553  6,401  6,385 
Machinery and equipment 8,661  8,128  7,871  7,624  7,389 
Construction in progress 1,921  1,701  1,530  1,205  976 
Property, plant and equipment, gross 18,149  16,978  16,089  15,361  14,877 
Accumulated depreciation and amortization (10,936) (10,387) (9,965) (9,586) (9,328)
Property, plant and equipment, net 7,213  6,591  6,124  5,775  5,549 

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09).

Item Description The company
Property, plant and equipment, 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. Lockheed Martin Corp.’s property, plant and equipment, gross increased from 2018 to 2019 and from 2019 to 2020.
Property, plant 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. Lockheed Martin Corp.’s property, plant and equipment, net increased from 2018 to 2019 and from 2019 to 2020.

Asset Age Ratios (Summary)

Lockheed Martin Corp., asset age ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Average age ratio 60.73% 61.67% 62.46% 62.94% 63.24%
Estimated total useful life (years) 21 21 21 20 20
Estimated age, time elapsed since purchase (years) 13 13 13 13 12
Estimated remaining life (years) 8 8 8 7 7

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09).

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. Lockheed Martin Corp.’s average age ratio of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.
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. Lockheed Martin Corp.’s estimated total useful life of depreciable property, plant and equipment increased from 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Lockheed Martin Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.
Estimated remaining life Lockheed Martin Corp.’s estimated remaining life of depreciable property, plant and equipment increased from 2018 to 2019 and from 2019 to 2020.

Average Age

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 10,936  10,387  9,965  9,586  9,328 
Property, plant and equipment, gross 18,149  16,978  16,089  15,361  14,877 
Land 142  136  135  131  127 
Asset Age Ratio
Average age1 60.73% 61.67% 62.46% 62.94% 63.24%

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09).

2020 Calculations

1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, gross – Land)
= 100 × 10,936 ÷ (18,149 – 142) = 60.73%

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. Lockheed Martin Corp.’s average age ratio of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross 18,149  16,978  16,089  15,361  14,877 
Land 142  136  135  131  127 
Depreciation expense related to plant and equipment 853  794  759  760  747 
Asset Age Ratio (Years)
Estimated total useful life1 21 21 21 20 20

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09).

2020 Calculations

1 Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation expense related to plant and equipment
= (18,149 – 142) ÷ 853 = 21

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. Lockheed Martin Corp.’s estimated total useful life of depreciable property, plant and equipment increased from 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 10,936  10,387  9,965  9,586  9,328 
Depreciation expense related to plant and equipment 853  794  759  760  747 
Asset Age Ratio (Years)
Time elapsed since purchase1 13 13 13 13 12

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09).

2020 Calculations

1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation expense related to plant and equipment
= 10,936 ÷ 853 = 13

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. Lockheed Martin Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 7,213  6,591  6,124  5,775  5,549 
Land 142  136  135  131  127 
Depreciation expense related to plant and equipment 853  794  759  760  747 
Asset Age Ratio (Years)
Estimated remaining life1 8 8 8 7 7

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09).

2020 Calculations

1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense related to plant and equipment
= (7,213 – 142) ÷ 853 = 8

Asset age ratio Description The company
Estimated remaining life Lockheed Martin Corp.’s estimated remaining life of depreciable property, plant and equipment increased from 2018 to 2019 and from 2019 to 2020.