YUM! Brands Inc. (NYSE:YUM)

The analysis of the property, plant, and equipment data over the five-year period reveals several notable trends and movements.

Land

The value of land showed a fluctuating but generally declining trend. Starting at $527 million in 2011, it decreased to $469 million in 2012, then rose slightly in 2013 and 2014 to around $506-$508 million, before falling again to $480 million in 2015.

Buildings and Improvements

This category exhibited consistent growth from 2011 through 2014, increasing from $3,856 million up to $4,549 million. However, 2015 saw a minor reduction to $4,462 million, indicating a slight pullback after steady expansion.

Capital Leases, Primarily Buildings

The values related to capital leases declined significantly from $316 million in 2011 to $200 million in 2012, and remained relatively stable thereafter with minor fluctuations, ending at $203 million in 2015.

Machinery and Equipment

This asset category experienced a gradual increase from $2,568 million in 2011 to a peak of $2,817 million in 2014, followed by a decline to $2,687 million in 2015. The trend suggests growth in the earlier years, with a reduction in the last year examined.

Property, Plant and Equipment, Gross

The gross value of property, plant, and equipment rose steadily from $7,267 million in 2011 to a high of $8,082 million in 2014, before decreasing to $7,832 million in 2015. This pattern mirrors the individual asset class trends, with expansion during the initial years and a slight contraction at the end.

Accumulated Depreciation and Amortization

Accumulated depreciation and amortization values increased in magnitude (more negative) over the period, moving from -$3,225 million in 2011 to -$3,643 million in 2015. This increase corresponds with the aging and usage of the property, plant, and equipment assets.

Property, Plant and Equipment, Net

The net book value of property, plant, and equipment rose from $4,042 million in 2011 to a peak of $4,498 million in 2014, then declined to $4,189 million in 2015. The net value trend reflects the combined effect of gross asset additions and accumulated depreciation.

Overall, the data indicates a period of asset growth and investment from 2011 through 2014, followed by a slight reduction in asset values in 2015. The accumulated depreciation continued to grow, exerting downward pressure on net asset values despite gross asset growth. This pattern suggests that while acquisition or improvement of assets occurred in the earlier years, maintenance or disposals may have led to reduced net property, plant, and equipment balances by the end of the period.

Average Age Ratio

The average age ratio displayed a slight fluctuation over the observed periods. Starting at 47.85% in 2011, it decreased to 45.36% in 2012, followed by an increase to 46.19% in 2013 and 47.31% in 2014. The highest value was recorded in 2015 at 49.55%. This trend suggests a modest aging of property, plant, and equipment assets over time.

Estimated Total Useful Life

The estimated total useful life remained steady at 11 years from 2011 through 2014, then declined to 10 years in 2015. This reduction may reflect a reassessment of asset longevity or changes in asset composition.

Estimated Age, Time Elapsed Since Purchase

The estimated age of assets was constant at 5 years across all periods. This consistency indicates a stable average time elapsed since acquisition without significant aging or new asset additions altering this metric.

Estimated Remaining Life

The estimated remaining life held steady at 6 years from 2011 to 2014 before decreasing to 5 years in 2015. This decrease aligns with the shortened total useful life in 2015, implying an adjustment in asset lifespan expectations.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization shows a general upward trend over the five-year period, increasing from 3,225 million USD in 2011 to 3,643 million USD in 2015. There was a slight decrease in 2012 to 3,139 million USD, but the amount rose consistently each year thereafter, suggesting ongoing use and aging of property assets.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment demonstrates moderate growth, moving from 7,267 million USD in 2011 to a peak of 8,082 million USD in 2014, before declining slightly to 7,832 million USD in 2015. This indicates some investment in assets is occurring, although there was a small reduction in the most recent year observed.

Land

The value of land assets fluctuates modestly over the period. Starting at 527 million USD in 2011, it decreases to 469 million USD in 2012, then increases again to 508 million USD in 2013 and remains relatively stable at around 500 million USD until 2015 where it declines slightly to 480 million USD. The changes suggest some land disposals or revaluations occurred.

Average Age Ratio

The average age ratio, expressed as a percentage, shows an increasing trend from 47.85% in 2011 to 49.55% in 2015, with some minor fluctuations in the intermediate years. This indicates that the asset base is gradually aging, which could imply increasing maintenance costs or the approaching need for capital reinvestment.

Property, plant and equipment, gross

The gross value of property, plant, and equipment showed a steady increase from 2011 to 2014, rising from 7,267 million US dollars to 8,082 million US dollars. However, in 2015, there was a slight decline to 7,832 million US dollars, indicating a potential slowdown or reduction in asset acquisition or capitalization during that year.

Land

The recorded value of land assets fluctuated modestly over the period. It decreased from 527 million US dollars in 2011 to 469 million US dollars in 2012, then increased to 508 million US dollars in 2013 before slightly declining again in subsequent years to 480 million US dollars by 2015. This variability may reflect changes in land holdings or revaluations.

Depreciation and amortization expense related to property, plant and equipment

Depreciation and amortization expenses exhibited a consistent upward trend, increasing each year from 599 million US dollars in 2011 to 712 million US dollars in 2015. This progression aligns with growing asset bases and usage over the period, contributing to higher periodic expense recognition.

Estimated total useful life

The estimated total useful life of the assets remained steady at 11 years from 2011 through 2014, before decreasing to 10 years in 2015. This reduction could indicate reassessments leading to shorter asset lifespans or changes in asset composition.

The accumulated depreciation and amortization for property, plant, and equipment showed a generally increasing trend from 2011 to 2015, despite a slight decline in 2012. Starting at 3,225 million US dollars in 2011, it decreased to 3,139 million in 2012, then rose steadily to reach 3,643 million by the end of 2015. This pattern indicates an overall growth in the total depreciation recorded over the five-year period, reflecting either ongoing asset usage or new asset additions subject to depreciation.

The depreciation and amortization expense related to property, plant, and equipment consistently increased each year. Beginning at 599 million US dollars in 2011, the expense rose to 712 million by 2015. This steady rise suggests either an expansion of the company’s asset base or rising depreciation charges on existing assets, possibly due to accelerated depreciation methods or changes in asset composition.

The time elapsed since purchase remained constant at five years throughout the period. This consistency implies that the average age of the depreciable assets did not significantly fluctuate, suggesting stable asset turnover or lifecycle management during these years.

Overall, the data reflects a stable asset base with incremental increases in depreciation expenses and accumulated depreciation, signaling ongoing asset utilization and possible investments in property, plant, and equipment over the period analyzed.

The analysis of the property, plant, and equipment (PP&E) data over the five-year period reveals several key trends and insights.

Property, Plant, and Equipment, Net

The net value of property, plant, and equipment experienced a general upward trend from 2011 to 2014, increasing from $4,042 million to $4,498 million. However, in 2015, there was a noticeable decline to $4,189 million. This suggests that while there was investment and asset accumulation in the initial years, there may have been disposals, impairments, or reduced investments toward the end of the period.

Land

The value of land showed variability throughout the years. Starting at $527 million in 2011, it decreased substantially to $469 million in 2012, then rebounded to $508 million in 2013 and remained relatively stable in 2014 before falling again to $480 million in 2015. This fluctuation indicates active management and possible revaluation or sales of land assets during the period.

Depreciation and Amortization Expense Related to PP&E

Depreciation and amortization expense increased steadily year over year, from $599 million in 2011 to $712 million in 2015. The rising expense reflects increased consumption or aging of assets, consistent with the growth and subsequent decline in net PP&E value. The consistent increase may also point to a growing asset base earlier on, which then aged or was depreciated more heavily in later years.

Estimated Remaining Life

The estimated remaining life of the assets was stable at 6 years from 2011 through 2014 but decreased to 5 years in 2015. This reduction suggests that the asset base is aging, with fewer years left before replacement or disposal, possibly indicating forthcoming capital expenditures to renew or replace existing assets.