AbbVie Inc., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Land	286)	286)	287)	288)	72)
Buildings	2,827)	2,737)	2,791)	2,555)	1,613)
Equipment	7,449)	7,107)	6,850)	6,976)	6,012)
Construction in progress	1,073)	856)	799)	1,040)	491)
Property and equipment, gross	11,635)	10,986)	10,727)	10,859)	8,188)
Accumulated depreciation	(6,646)	(6,051)	(5,617)	(5,611)	(5,226)
Property and equipment, net	4,989)	4,935)	5,110)	5,248)	2,962)

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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.	AbbVie Inc. property and equipment, gross increased from 2021 to 2022 and from 2022 to 2023.
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.	AbbVie Inc. property and equipment, net decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

AbbVie Inc., asset age ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Average age ratio	58.56%	56.55%	53.80%	53.08%	64.39%
Estimated total useful life (years)	15	14	13	16	17
Estimated age, time elapsed since purchase (years)	9	8	7	8	11
Estimated remaining life (years)	6	6	6	7	6

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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.	AbbVie Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
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.	AbbVie Inc. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	AbbVie Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated remaining life		AbbVie Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation	6,646)	6,051)	5,617)	5,611)	5,226)
Property and equipment, gross	11,635)	10,986)	10,727)	10,859)	8,188)
Land	286)	286)	287)	288)	72)
Asset Age Ratio
Average age¹	58.56%	56.55%	53.80%	53.08%	64.39%

2023 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property and equipment, gross – Land)
= 100 × 6,646 ÷ (11,635 – 286) = 58.56%

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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.	AbbVie Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Property and equipment, gross	11,635)	10,986)	10,727)	10,859)	8,188)
Land	286)	286)	287)	288)	72)
Depreciation expense	752)	778)	803)	666)	464)
Asset Age Ratio (Years)
Estimated total useful life¹	15	14	13	16	17

2023 Calculations

¹ Estimated total useful life = (Property and equipment, gross – Land) ÷ Depreciation expense
= (11,635 – 286) ÷ 752 = 15

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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.	AbbVie Inc. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation	6,646)	6,051)	5,617)	5,611)	5,226)
Depreciation expense	752)	778)	803)	666)	464)
Asset Age Ratio (Years)
Time elapsed since purchase¹	9	8	7	8	11

2023 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 6,646 ÷ 752 = 9

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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.	AbbVie Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Property and equipment, net	4,989)	4,935)	5,110)	5,248)	2,962)
Land	286)	286)	287)	288)	72)
Depreciation expense	752)	778)	803)	666)	464)
Asset Age Ratio (Years)
Estimated remaining life¹	6	6	6	7	6

2023 Calculations

¹ Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= (4,989 – 286) ÷ 752 = 6

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Asset age ratio	Description	The company
Estimated remaining life		AbbVie Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

AbbVie Inc. (NYSE:ABBV)

Analysis of Property, Plant and Equipment