Time Warner Inc. (NYSE:TWX)

The financial data for property, plant, and equipment over the five-year period ending December 31, 2017, reveals several notable trends and fluctuations across different asset categories.

Land

The value of land decreased substantially from $506 million in 2013 to $274 million in 2014. It then remained relatively stable around $268-$273 million through 2017, indicating a significant divestment or revaluation loss in the first year followed by consistent levels thereafter.

Buildings and improvements

There was a pronounced decline in buildings and improvements from $2,918 million in 2013 to $1,549 million in 2014. After this sharp drop, the value exhibited a gradual recovery, increasing modestly each year to reach $1,757 million by 2017.

Capitalized software costs

This asset category showed a relatively stable and gradually increasing trend over the period. From $1,990 million in 2013, the costs slightly decreased to $1,868 million in 2014, then steadily rose to $2,045 million by 2017, reflecting ongoing investment in software assets.

Construction in progress

Construction in progress fell significantly from $339 million in 2013 to $223 million in 2014, followed by a continued decline to $174 million in 2015. It then stabilized around $180 million in 2016 before sharply increasing to $380 million in 2017, suggesting renewed or accelerated capital projects in the final year.

Furniture, fixtures and other equipment

This category decreased consistently from $3,261 million in 2013 to $2,879 million in 2014, then remained relatively stable with minor fluctuations, finishing at $2,846 million in 2017, indicating some asset disposals offset by replacements or additions.

Property, plant and equipment, gross

The total gross value of property, plant, and equipment decreased considerably from $9,014 million in 2013 to $6,793 million in 2014, then stabilized with slight increases through 2017, ending at $7,297 million. The steep initial reduction suggests asset disposals or revaluations, with a modest recovery thereafter.

Accumulated depreciation

Accumulated depreciation showed a declining magnitude from -$5,189 million in 2013 to -$4,138 million in 2014, then progressively increased in absolute value each year to -$4,590 million by 2017. This pattern indicates a partial reversal or restatement early on, followed by the expected ongoing accumulation of depreciation expenses.

Property, plant and equipment, net

Net property, plant, and equipment decreased sharply from $3,825 million in 2013 to $2,655 million in 2014. It continued a moderate downward trend through 2016, reaching $2,510 million, before recovering slightly to $2,707 million in 2017. The drastic reduction in the first year was primarily due to the decreases in gross assets partially offset by changes in accumulated depreciation.

Overall, the data reflects substantial reductions in asset values between 2013 and 2014, followed by stabilization and modest growth in certain categories. The abrupt changes early in the period may suggest significant asset disposals, reclassifications, or impairments. From 2015 onward, capital expenditures and asset investments appear to have resumed a more consistent and positive trajectory.

Average Age Ratio

The average age ratio demonstrates an increasing trend from 60.99% in 2013 to a peak of 66.47% in 2016, followed by a slight decline to 65.31% in 2017. This indicates that over the period, property, plant, and equipment are generally aging, with a marginal reduction in aging intensity observed in the final year.

Estimated Total Useful Life

The estimated total useful life exhibits some variability, starting at 13 years in 2013, dipping to 12 years in 2014, and then stabilizing at 14 years from 2015 through 2017. This suggests reassessment or recalibration of asset longevity assumptions beginning in 2015, with a consistent estimated lifespan thereafter.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of assets remains relatively stable, at 8 years in 2013 and 2014, before increasing to 9 years from 2015 onwards. This gradual increase aligns with the passage of time and implies that asset ageing aligns with chronological expectations over the timeframe.

Estimated Remaining Life

The estimated remaining life fluctuates slightly, decreasing from 5 years in 2013 to 4 years in 2014, then returning to 5 years for the subsequent three years. This pattern reflects adjustments in asset lifespan estimation but generally indicates a consistent expectation of usable life into the future.

The financial data of property, plant, and equipment over the five-year period demonstrates several notable patterns and trends.

Accumulated Depreciation

There is a clear initial decline in accumulated depreciation from 5,189 million USD in 2013 to 4,138 million USD in 2014. However, after this drop, it begins to gradually increase year on year, reaching 4,590 million USD by the end of 2017. This pattern might indicate a significant adjustment or revaluation in 2014, followed by a steady recognition of depreciation expenses in subsequent years.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment shows a sharp decrease from 9,014 million USD in 2013 to 6,793 million USD in 2014. After this reduction, the value remains relatively stable with a slight overall increase, reaching 7,297 million USD in 2017. This trend suggests a major disposal, impairment, or reclassification event in 2014, with subsequent stable investment or acquisition.

Land

The value of land steadily decreases from 506 million USD in 2013 to 269 million USD in 2017. This continuous decline over the period might reflect disposals, revaluations, or a shift in asset holdings away from land-related investments.

Average Age Ratio

The average age ratio, expressed as a percentage, exhibits a consistent upward trend from 60.99% in 2013 to a peak of 66.47% in 2016, before a slight decrease to 65.31% in 2017. This indicates an overall aging asset base with some stabilization or rejuvenation towards the end of the period.

Overall, the data reveals that after a significant adjustment in 2014 impacting asset values and accumulated depreciation, the company’s property, plant, and equipment figures have stabilized with a trend toward an older asset base. Declining land values suggest strategic divestments or portfolio shifts, while the average age of assets slightly decreased in the final year, possibly indicating new investments or replacements within the asset base.

The analysis of the financial data for property, plant, and equipment (PPE) over the five-year period indicates several notable trends and observations.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment declined significantly from 2013 to 2014, dropping from $9,014 million to $6,793 million. This represents a decrease of approximately 24.7%. Following this considerable reduction, the gross PPE values showed a modest upward trend over the subsequent three years, increasing gradually from $6,793 million in 2014 to $7,297 million by the end of 2017. This suggests some reinvestment or acquisition of assets after the initial decline.

Land

The value of land decreased sharply between 2013 and 2014, from $506 million to $274 million, reflecting a reduction of about 45.8%. After this steep fall, the land value remained relatively stable over the following years, with minor fluctuations ending at $269 million in 2017. This stability suggests limited acquisition or disposal of land assets after the initial drop.

Depreciation of Property, Plant, and Equipment

The accumulated depreciation of PPE fell consistently throughout the period from $635 million in 2013 to $497 million in 2017. The decline was most pronounced in the first two years, with a decrease of $104 million from 2013 to 2014 and further decreases in subsequent years. This trend could imply asset disposals, changes in depreciation policies, or revaluations affecting the reported accumulated depreciation.

Estimated Total Useful Life

The estimated useful life of the property, plant, and equipment was 13 years in 2013, declined slightly to 12 years in 2014, and then stabilized at 14 years from 2015 through 2017. The increase and stabilization in the estimated useful life during this period could reflect asset revaluation, changes in asset composition, or adjustments in management's assumptions regarding asset longevity.

In summary, the data reflects substantial asset value reductions between 2013 and 2014, followed by moderate recovery in asset gross values and relatively stable land values. Depreciation decreased steadily over the period, and the estimated useful life experienced minor fluctuations before stabilizing. These patterns point to significant asset management activities during the early part of the period, with an overall trend of cautious asset revaluation and controlled reinvestment in subsequent years.

The analysis of the property, plant, and equipment financial data over the five-year period reveals several key trends and insights related to accumulated depreciation, annual depreciation expense, and the duration since asset acquisition.

Accumulated Depreciation

There is a noticeable fluctuation in accumulated depreciation values during the period. Starting at US$5,189 million in 2013, it declines significantly to US$4,138 million in 2014. Subsequently, the figures show a consistent upward trend from 2014 onwards, reaching US$4,590 million by the end of 2017. This pattern suggests a possible revaluation, asset disposal, or accounting adjustment in 2014, followed by steady accumulation of depreciation as assets age.

Depreciation Expense

The annual depreciation expense demonstrates a declining trend from US$635 million in 2013 to US$497 million in 2017. This reduction is gradual and relatively stable, indicative of a decrease in new asset acquisitions or the aging of existing assets, leading to lower annual depreciation charges. The consistent depreciation over the years, despite minor fluctuations, reflects controlled asset usage and maintenance policies.

Time Elapsed Since Purchase

The time elapsed since purchase remains fairly constant at around 8 to 9 years over the reported period. This metric suggests that the asset base has been relatively stable without significant infusion of newly acquired property, plant, and equipment. The steady age of assets could explain the consistent annual depreciation figures and the gradual accumulation in depreciation values post-2014.

In summary, the data indicates a significant adjustment in accumulated depreciation in 2014, followed by a steady increase consistent with aging assets. The annual depreciation expense declines moderately, aligning with a relatively constant asset age profile, which implies a stable capital expenditure pattern in terms of the property, plant, and equipment during this timeframe.

Net Property, Plant, and Equipment (PPE)

The net PPE value exhibits a general downward trend from 2013 to 2016, decreasing from 3,825 million US dollars to 2,510 million US dollars. In 2017, however, there is a slight recovery, with net PPE increasing to 2,707 million US dollars. This overall decline followed by a minor uptick may suggest asset disposals, impairments, or reduced capital expenditures over the middle years, with some reinvestment or asset additions occurring in the final year analyzed.

Land Value

The value attributed to land shows a consistent decline from 506 million US dollars in 2013 to 269 million US dollars by 2017. The decrease is steepest between 2013 and 2014, after which values stabilize with minimal changes. This pattern may indicate disposals of land assets or revaluation adjustments over the period, with the asset base for land becoming relatively stable in the later years.

Depreciation of Property, Plant, and Equipment

Depreciation expense also follows a declining trend from 635 million US dollars in 2013 to 479 million US dollars in 2016, increasing slightly to 497 million US dollars in 2017. The steady decline may reflect the aging and consequent reduced book value of assets, as well as fewer additions to depreciable assets. The minor increase in 2017 could be related to new assets entering depreciation or revisions in depreciation estimates.

Estimated Remaining Life

The estimated remaining life of the PPE remains relatively stable around 5 years, except for a drop to 4 years in 2014. This metric suggests a generally consistent expectation for asset usability duration, with the one-year dip in 2014 possibly reflecting accelerated asset aging or reassessment of asset lives during that year.