Property, plant and equipment, less accumulated depreciation assets are recorded at cost and are increased by the cost of any significant improvements after purchase. Property, plant and equipment assets, other than land and construction in progress, are depreciated on a straight-line basis over the estimated useful life of the individual assets. Depreciation begins when the asset is ready for its intended use. For tax purposes, accelerated depreciation methods are used as allowed by tax laws.

Source: 10-K (filing date: 2019-02-28).

Pfizer Inc., Statement of Financial Position, Property, Plant and Equipment

USD $ in millions

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Land	500	540	530	588	529
Buildings	9,920	10,254	9,810	9,604	9,355
Machinery and equipment	11,871	11,902	11,248	10,933	9,671
Furniture, fixtures and other	4,693	4,661	4,410	4,352	4,162
Construction in progress	2,992	2,680	2,127	1,791	1,271
Property, plant and equipment, gross	29,976	30,037	28,125	27,268	24,988
Accumulated depreciation	(16,591)	(16,172)	(14,807)	(13,502)	(13,226)
Property, plant and equipment, less accumulated depreciation	13,385	13,865	13,318	13,766	11,762

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

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.	Pfizer Inc.’s property, plant and equipment, gross increased from 2016 to 2017 but then slightly declined from 2017 to 2018.
Property, plant and equipment, less accumulated depreciation	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.	Pfizer Inc.’s property, plant and equipment, less accumulated depreciation increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

Pfizer Inc., Property, Plant and Equipment Ratios

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Average age	56.29%	54.83%	53.66%	50.61%	54.07%

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

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.	Pfizer Inc.’s average age of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (USD $ in millions)
Accumulated depreciation	16,591	16,172	14,807	13,502	13,226
Property, plant and equipment, gross	29,976	30,037	28,125	27,268	24,988
Land	500	540	530	588	529
Ratio
Average age¹	56.29%	54.83%	53.66%	50.61%	54.07%

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

2018 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × 16,591 ÷ (29,976 – 500) = 56.29%

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.	Pfizer Inc.’s average age of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.

Pfizer Inc. (PFE)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Accounting Policy

Property, Plant and Equipment Disclosure

Property, Plant and Equipment Ratios (Summary)

Average Age