Twenty-First Century Fox Inc. (NASDAQ:FOX)

Land

The value of land remained relatively stable from 2013 to 2017, fluctuating marginally between 140 and 142 million US dollars. In 2018, there was an uptick to 148 million, marking the highest recorded value within the observed period.

Buildings and Leaseholds

Values for buildings and leaseholds showed a consistent upward trend over the six-year span. Starting at 1,307 million in 2013, the figure increased incrementally each year, reaching 1,553 million by 2018. This steady growth suggests ongoing investments or valuations adjustments in these fixed assets.

Machinery and Equipment

This category experienced a notable volatility. From a peak of 6,571 million in 2014, the value sharply declined to 2,620 million in 2015 and then gradually increased each subsequent year, reaching 2,958 million in 2018. The sharp dip between 2014 and 2015 may indicate significant disposals, impairments, or reclassification of assets.

Construction in Progress

Values for construction in progress fluctuated throughout the period, with an initial modest increase from 134 million in 2013 to 145 million in 2014, followed by a decline in 2015 to 109 million. In 2016, the figure rose to 173 million, then decreased again in 2017, and finally peaked at 228 million in 2018. This irregular pattern reflects varying levels of ongoing capital expenditure and project completion timing.

Property, Plant and Equipment, Gross

The gross value of property, plant, and equipment showed significant variation, decreasing drastically from 8,231 million in 2014 to 4,188 million in 2015. Thereafter, a gradual increase is observable, rising to 4,887 million by 2018. This trend corresponds with the changes observed in machinery and equipment and may be indicative of asset write-downs or disposals followed by new investments.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization consistently grew in negative value throughout the period, from -4,480 million in 2013 to -2,931 million in 2018. The sharp decrease in absolute value between 2014 and 2015 aligns with the drop in gross property, plant, and equipment, suggesting asset disposals that reduced the accumulated depreciation base.

Property, Plant and Equipment, Net

The net property, plant, and equipment exhibited a decline from 2,829 million in 2013 to 1,692 million in 2016, reaching its lowest point during the observed period. After 2016, a gradual recovery occurred, ending at 1,956 million in 2018. This pattern reflects the combined effects of the previously discussed changes in gross asset values and accumulated depreciation, suggesting a period of contraction followed by asset renewal or acquisition.

The analysis of the annual property, plant, and equipment data reveals several noteworthy trends in the lifecycle and age characteristics of the assets under consideration.

Average Age Ratio

The average age ratio, expressed as a percentage, exhibits minor fluctuations over the observed periods. It increased from 62.51% in mid-2013 to a peak of 65.52% in mid-2014, followed by a general decline reaching 61.85% by mid-2018. This pattern suggests a slight initial aging of the asset base, with a gradual rejuvenation or replacement occurring afterward.

Estimated Total Useful Life

The estimated total useful life of the assets demonstrates significant variability throughout the timeline. Starting at 12 years in 2013, this figure decreased steadily to a low of 9 years in 2015, before rising substantially to 15 years for 2016 and 2017, and then slightly decreasing to 14 years in 2018. The initial decrease might indicate reassessments leading to shorter life expectations, while the subsequent increase may reflect additions of newer assets with longer projected useful lives or reevaluations extending asset longevity.

Estimated Age, Time Elapsed Since Purchase

The estimated age of the assets decreased from 7 years in 2013 and 2014 to 6 years in 2015, then increased sharply to 9 years in 2016 and remained stable thereafter. This shift may imply asset retirements or disposals around 2015 followed by acquisition of assets with longer service periods, stabilizing the average age in later years.

Estimated Remaining Life

The estimated remaining life consistently ranged between 4 and 5 years across the periods, starting at 4 years in 2013-2015 and increasing to 5 years from 2016 through 2018. This trend suggests a modest extension in remaining service periods, possibly due to asset revaluation or effective maintenance strategies prolonging usability.

Overall, the data indicates a dynamic management of property, plant, and equipment assets characterized by initial aging followed by asset renewal and extended useful life estimations in recent years. These shifts point to a potential strategic effort to maintain or enhance asset value and longevity under evolving operational conditions.

Property, Plant, and Equipment Gross Value

The gross value of property, plant, and equipment showed an initial increase from 7,309 million US dollars in mid-2013 to 8,231 million US dollars in mid-2014. This was followed by a significant decrease to 4,188 million US dollars in mid-2015. After this decline, the value gradually increased each year, reaching 4,887 million US dollars by mid-2018.

Accumulated Depreciation and Amortization

Accumulated depreciation and amortization rose from 4,480 million US dollars in mid-2013 to 5,300 million US dollars in mid-2014, aligning with the growth in gross property values. However, this figure sharply dropped to 2,466 million US dollars in mid-2015, coinciding with the reduction in gross property, plant, and equipment values. In the subsequent years, there was a steady increase, reaching 2,931 million US dollars by mid-2018.

Land

Land values remained relatively stable throughout the period, fluctuating narrowly between 140 million and 148 million US dollars. There was no significant upward or downward trend in land value over the six years.

Average Age Ratio

The average age ratio of property, plant, and equipment ranged between approximately 60.95% and 65.52%. The ratio increased from 62.51% in 2013 to a peak of 65.52% in 2014, then declined slightly, showing minor fluctuations around the low 60s percentage, ending at 61.85% in 2018. This suggests a relatively stable aging profile of the assets over the analyzed period.

Overall Observations

The data indicates a notable restructuring or revaluation event between mid-2014 and mid-2015, given the pronounced decreases in gross property, plant, and equipment values as well as accumulated depreciation and amortization. Following this event, both measures showed gradual upward trends. Land assets remained consistent, indicating no major acquisitions or disposals. The average age ratio maintained a steady level with minor variations, reflecting a stable maintenance or asset replacement strategy.

The analysis of the property, plant, and equipment financial data reveals several notable trends over the covered periods.

Property, plant and equipment, gross

The gross value initially increased from 7,309 million US dollars in 2013 to 8,231 million in 2014, indicating a period of asset expansion or acquisition. However, a sharp decrease occurred in 2015, dropping to 4,188 million US dollars. Following this decline, the value stabilized and demonstrated a gradual upward trend from 2016 to 2018, reaching 4,887 million US dollars by mid-2018. This pattern suggests a significant disposal or revaluation event in 2015, followed by moderate investment or asset growth in subsequent years.

Land

The value of land remained relatively stable around 140-142 million US dollars from 2013 through 2017, with a slight increase to 148 million in 2018. This stability implies minimal transactions or changes in land holdings during the period, reflecting the typically longer-term nature of land assets.

Depreciation and amortization related to Property, plant and equipment

Depreciation and amortization expenses increased from 614 million US dollars in 2013 to a peak of 741 million in 2014, mirroring the increase in gross property, plant and equipment. In 2015, there was a pronounced decline to 433 million, followed by a further reduction to 283 million in 2016. Thereafter, depreciation expenses rose moderately to 299 million in 2017 and 337 million in 2018. This fluctuation corresponds with the changes in asset base, particularly the sharp drop in gross assets in 2015, and may reflect alterations in asset composition or usage intensity.

Estimated total useful life

The estimated useful life of the assets showed variability over the analyzed years. It shortened from 12 years in 2013 to 11 years in 2014, then dropped further to 9 years in 2015. Subsequently, a significant increase occurred in 2016 and 2017, rising to 15 years, before a slight decrease to 14 years in 2018. These changes may indicate shifts in the asset portfolio's nature, potentially influenced by asset disposals, acquisitions of longer-lived assets, or revisions in depreciation policies.

The financial data for property, plant, and equipment over the six-year period ending June 30, 2018, reveals certain notable trends in accumulated depreciation, amortization expenses, and asset aging.

Accumulated Depreciation and Amortization

There is an initial increase in accumulated depreciation and amortization from 4,480 million US dollars in 2013 to 5,300 million US dollars in 2014. However, in the subsequent years, the balance sharply decreases to 2,466 million US dollars in 2015, followed by a gradual increase from 2,600 million US dollars in 2016 up to 2,931 million US dollars in 2018. This irregular pattern may suggest a reassessment or write-off event in 2015, leading to a significant reduction, before resuming a modest upward trend.

Depreciation and Amortization Expense Related to Property, Plant, and Equipment

The depreciation and amortization expense shows a similar pattern over the years. It starts at 614 million US dollars in 2013 and rises to a peak of 741 million US dollars in 2014. Following that peak, it drops considerably to 433 million US dollars in 2015 and continues to decline further to 283 million US dollars by 2016. A slight recovery is observed thereafter, with expenses increasing to 299 million in 2017 and 337 million in 2018. This trend aligns with the changes observed in accumulated depreciation and could indicate fluctuating asset base characteristics or changes in depreciation policy.

Time Elapsed Since Purchase

The average time elapsed since purchase of the assets increases from 7 years in 2013 and 2014 to 9 years starting from 2016 and remains steady through to 2018. This indicates an aging asset base over the later years, which is consistent with the decreasing depreciation expenses after 2014, suggesting fewer new asset acquisitions or a slower replacement cycle during that period.

In summary, the data indicates a volatile accumulated depreciation balance with a notable adjustment in 2015, a declining trend in depreciation expense post-2014 with a mild recovery toward 2018, and an overall aging asset base as reflected by the elapsed time since purchase. These factors collectively suggest changes in asset management strategy, including potential asset disposals, write-offs, or shifts in capital expenditure patterns.

Net Property, Plant, and Equipment

The net value of property, plant, and equipment showed a general decline from US$2,829 million in mid-2013 to US$1,722 million in mid-2015. This decrease stopped in 2016, with values stabilizing around US$1,700 million before gradually increasing again to US$1,956 million by mid-2018. This pattern may suggest asset disposals or impairments in earlier years, followed by subsequent reinvestment or acquisition of assets in later periods.

Land

The value of land remained relatively stable over the observed periods, fluctuating minimally between US$140 million and US$148 million. This indicates that land holdings were largely unchanged, with no significant acquisitions or disposals.

Depreciation and Amortization Related to Property, Plant, and Equipment

Depreciation and amortization expenses experienced a significant decrease from US$741 million in mid-2014 to US$283 million in mid-2016, more than halving during this timeframe. From mid-2016 onwards, these expenses showed a slight increasing trend, reaching US$337 million by mid-2018. This reduction in depreciation could be related to the disposal or impairment of older assets, leading to a lower depreciation base, with subsequent additions causing the gradual rise after 2016.

Estimated Remaining Life

The estimated remaining life of property, plant, and equipment increased from 4 years during 2013 to 2015 to 5 years from 2016 onwards. This extension may reflect acquisition of assets with longer useful lives or a reassessment of asset longevity, possibly due to changes in technology or maintenance practices.