Walgreens Boots Alliance Inc., balance sheet: property, plant and equipment

US$ in millions

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Land and land improvements	3,507)	3,593)	3,470)	3,738)	3,687)	3,418)
Buildings and building improvements	8,023)	7,874)	7,431)	7,557)	7,705)	6,901)
Fixtures and equipment	9,786)	9,750)	9,209)	9,064)	8,904)	7,559)
Capitalized system development costs and software	2,770)	2,464)	2,105)	1,787)	1,491)	688)
Capital lease properties	703)	743)	745)	789)	821)	530)
Property, plant and equipment, at cost	24,789)	24,424)	22,960)	22,935)	22,608)	19,096)
Accumulated depreciation and amortization	(11,311)	(10,513)	(9,318)	(8,600)	(7,540)	(6,839)
Property, plant and equipment, net	13,478)	13,911)	13,642)	14,335)	15,068)	12,257)

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

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Item	Description	The company
Property, plant and equipment, at cost	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.	Walgreens Boots Alliance Inc. property, plant and equipment, at cost increased from 2017 to 2018 and from 2018 to 2019.
Property, plant 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.	Walgreens Boots Alliance Inc. property, plant and equipment, net increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Walgreens Boots Alliance Inc., asset age ratios

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Average age ratio	53.15%	50.47%	47.81%	44.80%	39.85%	43.62%
Estimated total useful life (years)	14	15	15	15	15	17
Estimated age, time elapsed since purchase (years)	8	8	7	7	6	7
Estimated remaining life (years)	7	7	8	8	9	10

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

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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.	Walgreens Boots Alliance Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
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.	Walgreens Boots Alliance Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Walgreens Boots Alliance Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
Estimated remaining life		Walgreens Boots Alliance Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization	11,311)	10,513)	9,318)	8,600)	7,540)	6,839)
Property, plant and equipment, at cost	24,789)	24,424)	22,960)	22,935)	22,608)	19,096)
Land and land improvements	3,507)	3,593)	3,470)	3,738)	3,687)	3,418)
Asset Age Ratio
Average age¹	53.15%	50.47%	47.81%	44.80%	39.85%	43.62%

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

2019 Calculations

¹ Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, at cost – Land and land improvements)
= 100 × 11,311 ÷ (24,789 – 3,507) = 53.15%

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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.	Walgreens Boots Alliance Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Selected Financial Data (US$ in millions)
Property, plant and equipment, at cost	24,789)	24,424)	22,960)	22,935)	22,608)	19,096)
Land and land improvements	3,507)	3,593)	3,470)	3,738)	3,687)	3,418)
Depreciation and amortization expense for property, plant and equipment including capitalized system development costs and software	1,500)	1,400)	1,300)	1,300)	1,300)	923)
Asset Age Ratio (Years)
Estimated total useful life¹	14	15	15	15	15	17

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

2019 Calculations

¹ Estimated total useful life = (Property, plant and equipment, at cost – Land and land improvements) ÷ Depreciation and amortization expense for property, plant and equipment including capitalized system development costs and software
= (24,789 – 3,507) ÷ 1,500 = 14

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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.	Walgreens Boots Alliance Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization	11,311)	10,513)	9,318)	8,600)	7,540)	6,839)
Depreciation and amortization expense for property, plant and equipment including capitalized system development costs and software	1,500)	1,400)	1,300)	1,300)	1,300)	923)
Asset Age Ratio (Years)
Time elapsed since purchase¹	8	8	7	7	6	7

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

2019 Calculations

¹ Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation and amortization expense for property, plant and equipment including capitalized system development costs and software
= 11,311 ÷ 1,500 = 8

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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.	Walgreens Boots Alliance Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Selected Financial Data (US$ in millions)
Property, plant and equipment, net	13,478)	13,911)	13,642)	14,335)	15,068)	12,257)
Land and land improvements	3,507)	3,593)	3,470)	3,738)	3,687)	3,418)
Depreciation and amortization expense for property, plant and equipment including capitalized system development costs and software	1,500)	1,400)	1,300)	1,300)	1,300)	923)
Asset Age Ratio (Years)
Estimated remaining life¹	7	7	8	8	9	10

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

2019 Calculations

¹ Estimated remaining life = (Property, plant and equipment, net – Land and land improvements) ÷ Depreciation and amortization expense for property, plant and equipment including capitalized system development costs and software
= (13,478 – 3,507) ÷ 1,500 = 7

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Asset age ratio	Description	The company
Estimated remaining life		Walgreens Boots Alliance Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

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