Intel Corp. (NASDAQ:INTC)

Over the five-year period, a consistent increase is observed in the gross value of property, plant, and equipment. This growth is primarily driven by expansions in Land and buildings, and Machinery and equipment. However, the rate of increase in gross PP&E slowed in the most recent year presented.

Land and Buildings

Land and buildings demonstrate a substantial and steady increase throughout the period, rising from US$40,039 million to US$65,395 million. This represents a cumulative growth of approximately 63.3% over the five years, indicating significant investment in property assets. The growth rate appears to be accelerating, particularly between 2023 and 2025.

Machinery and Equipment

Machinery and equipment also exhibit consistent growth, increasing from US$86,955 million to US$111,940 million. This represents a cumulative growth of approximately 28.8% over the five years. The rate of increase is relatively stable, although it slows slightly in the final year.

Construction in Progress

Construction in progress shows a fluctuating pattern. It increased significantly from 2021 to 2023, peaking at US$43,442 million, before decreasing to US$34,543 million in 2025. This suggests a shift in capital expenditure strategy, potentially with the completion of major projects and a reduction in new construction starts.

Accumulated Depreciation

Accumulated depreciation consistently increases each year, rising from US$85,294 million to US$106,464 million. This is expected as assets age and are utilized. The rate of increase in accumulated depreciation remains relatively stable, mirroring the growth in the asset base.

Property, Plant, and Equipment, Net

The net book value of property, plant, and equipment demonstrates a positive trend overall, increasing from US$63,245 million to US$105,414 million. However, the growth rate decelerates in the final year, with a slight decrease from US$107,919 million in 2024 to US$105,414 million in 2025. This could be attributed to a combination of factors, including slower growth in gross PP&E and continued depreciation expense.

In summary, the company has been actively investing in its property, plant, and equipment base. While growth remains positive, the recent slowdown in net PP&E growth warrants further investigation to understand the underlying drivers and potential implications for future performance.

The analysis of property, plant, and equipment reveals evolving characteristics regarding asset age and useful life estimations. A consistent pattern emerges concerning the average age ratio, while estimations of total useful life and remaining life exhibit fluctuations over the observed period.

Average Age Ratio

The average age ratio demonstrates a generally decreasing trend from 57.42% in 2021 to 48.64% in 2024. This suggests a relative shift towards newer assets within the fixed asset base. However, the ratio increased slightly to 50.25% in 2025, potentially indicating a slower rate of asset replacement or increased investment in older assets during that year.

Estimated Total Useful Life

Estimates of total useful life show considerable variation. The value increased from 15 years in 2021 to 16 years in 2022, then significantly to 25 years in 2023. A subsequent decrease to 21 years in 2024 and further to 20 years in 2025 is observed. These changes could reflect revisions in depreciation policies, technological advancements impacting asset obsolescence, or shifts in the composition of the asset base.

Estimated Age and Remaining Life

The estimated age, representing the time elapsed since purchase, increased from 9 years in 2021 to 12 years in 2023, then decreased to 10 years in both 2024 and 2025. This pattern correlates with the fluctuations in estimated total useful life. The estimated remaining life initially increased from 6 years in 2021 to 12 years in 2023, mirroring the increase in total useful life. Subsequently, it decreased to 11 years in 2024 and 10 years in 2025, aligning with the reduction in estimated total useful life.

The interplay between estimated total useful life, estimated age, and estimated remaining life suggests a dynamic assessment of asset value. The initial increase in total useful life, coupled with the increasing age, resulted in a longer remaining life. The later decrease in total useful life, despite a relatively stable age, led to a shorter remaining life. These adjustments warrant further investigation to understand the underlying drivers and their potential impact on depreciation expense and asset carrying values.

An examination of the financial information reveals trends in accumulated depreciation, gross property, plant, and equipment (PP&E), and the resulting average age ratio over a five-year period. Accumulated depreciation consistently increased throughout the period, while gross PP&E also exhibited an upward trend, though with some fluctuation in the rate of increase. The average age ratio demonstrated a general decline, followed by a slight increase in the most recent year.

Accumulated Depreciation

Accumulated depreciation increased steadily from US$85,294 million in 2021 to US$106,464 million in 2025. The largest absolute increase occurred between 2021 and 2022 (US$8,092 million), while the smallest occurred between 2024 and 2025 (US$4,271 million). This consistent growth suggests ongoing utilization of PP&E assets and the recognition of their depreciated value.

Gross Property, Plant, and Equipment

Gross PP&E increased from US$148,539 million in 2021 to US$211,878 million in 2025. The most substantial increase was observed between 2021 and 2022 (US$25,707 million), indicating significant investment in PP&E during that year. The rate of increase slowed in subsequent years, with a minimal increase between 2024 and 2025 (US$1,766 million). This suggests a potential moderation in capital expenditure.

Average Age Ratio

The average age ratio decreased from 57.42% in 2021 to 48.64% in 2024, indicating a relatively younger PP&E base. This decline suggests that new assets were being added at a rate faster than the accumulation of depreciation. However, in 2025, the ratio increased slightly to 50.25%, potentially signaling a slower rate of asset renewal or a higher proportion of depreciation relative to new additions. The overall trend suggests a modernization of the asset base, though the recent uptick warrants further investigation.

In summary, the company has been consistently investing in PP&E, as evidenced by the growth in gross PP&E and the corresponding increase in accumulated depreciation. The declining average age ratio, until 2025, suggests a relatively modern asset base. The slight increase in the average age ratio in the final year observed may indicate a shift in investment strategy or asset utilization patterns.

Over the five-year period, property, plant, and equipment, gross consistently increased, indicating ongoing investment in fixed assets. Depreciation expense fluctuated throughout the period, while the estimated total useful life of these assets exhibited considerable variation.

Gross Property, Plant, and Equipment

The gross value of property, plant, and equipment demonstrated a consistent upward trajectory, increasing from US$148,539 million in 2021 to US$211,878 million in 2025. The largest single-year increase occurred between 2021 and 2022, with an addition of US$25,707 million. Growth rates decelerated in subsequent years, though remained positive.

Depreciation Expense

Depreciation expense initially rose from US$9,953 million in 2021 to US$11,128 million in 2022. A significant decrease was then observed in 2023, falling to US$7,847 million. Depreciation expense then increased again in 2024 and 2025, reaching US$10,757 million. This fluctuation suggests potential changes in the asset base composition or depreciation methods employed.

Estimated Total Useful Life

The estimated total useful life of property, plant, and equipment experienced substantial changes. It began at 15 years in 2021, increased to 16 years in 2022, then rose significantly to 25 years in 2023. Subsequently, it decreased to 21 years in 2024 and further to 20 years in 2025. The large increase in 2023, followed by subsequent declines, warrants further investigation to understand the underlying reasons for these adjustments, such as changes in asset types or revised estimations of asset longevity.

The interplay between increasing gross property, plant, and equipment and fluctuating depreciation expense, coupled with the changing estimated useful life, suggests a dynamic asset management strategy. The variations in estimated useful life, in particular, could significantly impact reported earnings and asset values, and should be monitored closely.

Analysis reveals a consistent increase in accumulated depreciation over the five-year period, alongside fluctuating depreciation expense. The reported time elapsed since purchase exhibits variability, potentially indicating differing asset acquisition patterns across the asset base.

Accumulated Depreciation

Accumulated depreciation increased steadily from US$85,294 million in 2021 to US$106,464 million in 2025. This represents a cumulative increase of approximately 24.8% over the period. The rate of increase appears relatively consistent year-over-year, suggesting a predictable depreciation process for a significant portion of the asset base.

Depreciation Expense

Depreciation expense demonstrates more volatility. It rose from US$9,953 million in 2021 to US$11,128 million in 2022, then decreased significantly to US$7,847 million in 2023. A subsequent increase to US$9,951 million occurred in 2024, followed by a further rise to US$10,757 million in 2025. This fluctuation could be attributed to asset disposals, new asset acquisitions, or changes in estimated useful lives impacting the annual depreciation charge.

Time Elapsed Since Purchase

The reported time elapsed since purchase varies. A value of 9 years is shown for 2021, decreasing to 8 years in 2022, then increasing to 12 years in 2023. The value stabilizes at 10 years for both 2024 and 2025. This suggests a pattern of ongoing asset replacement or significant additions to the asset base in earlier years, with a more consistent asset age profile emerging in the later years of the period. The initial decrease followed by an increase could indicate the introduction of newer, shorter-lived assets, followed by the aging of the overall asset portfolio.

The divergence between the consistently increasing accumulated depreciation and the fluctuating depreciation expense warrants further investigation. Understanding the drivers behind the expense fluctuations, particularly the significant decrease in 2023, is crucial. The varying time elapsed since purchase suggests a dynamic asset management strategy, and continued monitoring of this metric is recommended to assess the long-term implications for capital expenditure requirements.

Over the five-year period, the net value of property, plant, and equipment exhibited a generally increasing trend, although the rate of increase fluctuated. Depreciation expense also demonstrated variability throughout the period. Simultaneously, the estimated remaining life of these assets showed an initial increase followed by a gradual decline.

Property, Plant, and Equipment (PP&E)

The net PP&E value increased from US$63,245 million in 2021 to US$80,860 million in 2022, representing a substantial rise. This growth continued to US$96,647 million in 2023 and peaked at US$107,919 million in 2024. A slight decrease was observed in 2025, with the value settling at US$105,414 million. This suggests significant investment in PP&E during the earlier part of the period, with a potential stabilization or minor reduction in investment towards the end.

Depreciation Expense

Depreciation expense rose from US$9,953 million in 2021 to US$11,128 million in 2022, aligning with the increase in PP&E. A notable decrease occurred in 2023, falling to US$7,847 million. Depreciation then increased again in 2024 to US$9,951 million and further to US$10,757 million in 2025. The fluctuation in depreciation expense may be attributable to changes in the asset base, depreciation methods, or asset impairments.

Estimated Remaining Life

The estimated remaining life of the PP&E increased from 6 years in 2021 to 7 years in 2022. A significant jump was then observed, reaching 12 years in 2023. Subsequently, the estimated remaining life decreased to 11 years in 2024 and 10 years in 2025. This pattern could indicate a reassessment of asset lifecycles, potentially due to technological advancements or changes in usage patterns, followed by a more consistent depreciation schedule.

Relationship between PP&E, Depreciation, and Remaining Life

The initial increase in PP&E coincided with a rise in depreciation expense and an extension of the estimated remaining life. The decrease in depreciation in 2023, despite continued growth in PP&E, suggests a possible change in the composition of the asset base or a revision of depreciation rates. The subsequent decline in estimated remaining life, while PP&E remained high, could indicate an anticipated acceleration of asset obsolescence or increased utilization.