Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age
Estimated Total Useful Life
Estimated Age, Time Elapsed Since Purchase
Estimated Remaining Life

Palo Alto Networks Inc., balance sheet: property, plant and equipment

US$ in thousands

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Computers, equipment, and software	466,000)	432,900)	404,300)	352,100)	306,800)	264,100)
Leasehold improvements	274,000)	268,900)	249,300)	231,600)	229,500)	204,800)
Land	87,200)	87,200)	87,200)	49,600)	49,600)	—)
Demonstration units	44,400)	46,900)	41,600)	43,800)	43,300)	40,700)
Furniture and fixtures	48,700)	46,900)	45,100)	40,300)	39,900)	30,600)
Property and equipment, gross	920,300)	882,800)	827,500)	717,400)	669,100)	540,200)
Accumulated depreciation	(559,200)	(528,300)	(469,700)	(399,000)	(321,000)	(244,200)
Property and equipment, net	361,100)	354,500)	357,800)	318,400)	348,100)	296,000)

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

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Item	Description	The company
Property 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.	Palo Alto Networks Inc. property and equipment, gross increased from 2022 to 2023 and from 2023 to 2024.
Property 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.	Palo Alto Networks Inc. property and equipment, net decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Palo Alto Networks Inc., asset age ratios

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Average age ratio	67.12%	66.40%	63.45%	59.75%	51.82%	45.21%
Estimated total useful life (years)	10	8	8	7	6	6
Estimated age, time elapsed since purchase (years)	7	6	5	4	3	3
Estimated remaining life (years)	3	3	3	3	3	3

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

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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.	Palo Alto Networks Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2022 to 2023 and from 2023 to 2024.
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.	Palo Alto Networks Inc. estimated total useful life of depreciable property, plant and equipment increased from 2022 to 2023 and from 2023 to 2024.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Palo Alto Networks Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2022 to 2023 and from 2023 to 2024.
Estimated remaining life		Palo Alto Networks Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Selected Financial Data (US$ in thousands)
Accumulated depreciation	559,200)	528,300)	469,700)	399,000)	321,000)	244,200)
Property and equipment, gross	920,300)	882,800)	827,500)	717,400)	669,100)	540,200)
Land	87,200)	87,200)	87,200)	49,600)	49,600)	—)
Asset Age Ratio
Average age¹	67.12%	66.40%	63.45%	59.75%	51.82%	45.21%

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

2024 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property and equipment, gross – Land)
= 100 × 559,200 ÷ (920,300 – 87,200) = 67.12%

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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.	Palo Alto Networks Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Selected Financial Data (US$ in thousands)
Property and equipment, gross	920,300)	882,800)	827,500)	717,400)	669,100)	540,200)
Land	87,200)	87,200)	87,200)	49,600)	49,600)	—)
Depreciation expense	85,100)	95,900)	92,800)	94,200)	96,000)	86,200)
Asset Age Ratio (Years)
Estimated total useful life¹	10	8	8	7	6	6

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

2024 Calculations

¹ Estimated total useful life = (Property and equipment, gross – Land) ÷ Depreciation expense
= (920,300 – 87,200) ÷ 85,100 = 10

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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.	Palo Alto Networks Inc. estimated total useful life of depreciable property, plant and equipment increased from 2022 to 2023 and from 2023 to 2024.

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Selected Financial Data (US$ in thousands)
Accumulated depreciation	559,200)	528,300)	469,700)	399,000)	321,000)	244,200)
Depreciation expense	85,100)	95,900)	92,800)	94,200)	96,000)	86,200)
Asset Age Ratio (Years)
Time elapsed since purchase¹	7	6	5	4	3	3

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

2024 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 559,200 ÷ 85,100 = 7

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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.	Palo Alto Networks Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Selected Financial Data (US$ in thousands)
Property and equipment, net	361,100)	354,500)	357,800)	318,400)	348,100)	296,000)
Land	87,200)	87,200)	87,200)	49,600)	49,600)	—)
Depreciation expense	85,100)	95,900)	92,800)	94,200)	96,000)	86,200)
Asset Age Ratio (Years)
Estimated remaining life¹	3	3	3	3	3	3

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

2024 Calculations

¹ Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= (361,100 – 87,200) ÷ 85,100 = 3

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Asset age ratio	Description	The company
Estimated remaining life		Palo Alto Networks Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Palo Alto Networks Inc. (NASDAQ:PANW)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life