Stock Analysis on Net

Lockheed Martin Corp. (NYSE:LMT)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

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

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Land 144 147 144 142 136
Buildings 9,049 8,555 8,003 7,425 7,013
Machinery and equipment 9,908 9,400 9,053 8,661 8,128
Construction in progress 2,081 2,036 1,900 1,921 1,701
Property, plant and equipment, gross 21,182 20,138 19,100 18,149 16,978
Accumulated depreciation (12,812) (12,163) (11,503) (10,936) (10,387)
Property, plant and equipment, net 8,370 7,975 7,597 7,213 6,591

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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. property, plant and equipment, gross increased from 2021 to 2022 and from 2022 to 2023.
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. property, plant and equipment, net increased from 2021 to 2022 and from 2022 to 2023.

Asset Age Ratios (Summary)

Lockheed Martin Corp., asset age ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Average age ratio 60.90% 60.84% 60.68% 60.73% 61.67%
Estimated total useful life (years) 23 22 21 21 21
Estimated age, time elapsed since purchase (years) 14 13 13 13 13
Estimated remaining life (years) 9 9 8 8 8

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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. Lockheed Martin Corp. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
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. Lockheed Martin Corp. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Lockheed Martin Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated remaining life Lockheed Martin Corp. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Average Age

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation 12,812 12,163 11,503 10,936 10,387
Property, plant and equipment, gross 21,182 20,138 19,100 18,149 16,978
Land 144 147 144 142 136
Asset Age Ratio
Average age1 60.90% 60.84% 60.68% 60.73% 61.67%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × 12,812 ÷ (21,182144) = 60.90%

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. Lockheed Martin Corp. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross 21,182 20,138 19,100 18,149 16,978
Land 144 147 144 142 136
Depreciation expense related to plant and equipment 920 903 904 853 794
Asset Age Ratio (Years)
Estimated total useful life1 23 22 21 21 21

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation expense related to plant and equipment
= (21,182144) ÷ 920 = 23

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. Lockheed Martin Corp. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation 12,812 12,163 11,503 10,936 10,387
Depreciation expense related to plant and equipment 920 903 904 853 794
Asset Age Ratio (Years)
Time elapsed since purchase1 14 13 13 13 13

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense related to plant and equipment
= 12,812 ÷ 920 = 14

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. Lockheed Martin Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 8,370 7,975 7,597 7,213 6,591
Land 144 147 144 142 136
Depreciation expense related to plant and equipment 920 903 904 853 794
Asset Age Ratio (Years)
Estimated remaining life1 9 9 8 8 8

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense related to plant and equipment
= (8,370144) ÷ 920 = 9

Asset age ratio Description The company
Estimated remaining life Lockheed Martin Corp. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.