Carrier Global Corp., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Land	126)	114)	109)
Buildings and improvements	1,251)	1,084)	1,160)
Machinery, tools and equipment	2,409)	2,093)	2,138)
Rental assets	390)	381)	416)
Other, including assets under construction	347)	304)	261)
Fixed assets, gross	4,523)	3,976)	4,084)
Accumulated depreciation	(2,282)	(2,150)	(2,274)
Fixed assets, net	2,241)	1,826)	1,810)

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Item	Description	The company
Fixed assets, 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.	Carrier Global Corp. fixed assets, gross decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Fixed assets, 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.	Carrier Global Corp. fixed assets, net increased from 2020 to 2021 and from 2021 to 2022.

Carrier Global Corp., asset age ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Average age ratio	51.90%	55.67%	57.21%
Estimated total useful life (years)	17	16	17
Estimated age, time elapsed since purchase (years)	9	9	10
Estimated remaining life (years)	8	7	7

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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.	Carrier Global Corp. average age ratio of depreciable property, plant and equipment improved from 2020 to 2021 and from 2021 to 2022.
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.	Carrier Global Corp. estimated total useful life of depreciable property, plant and equipment decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Carrier Global Corp. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2020 to 2021 and from 2021 to 2022.
Estimated remaining life		Carrier Global Corp. estimated remaining life of depreciable property, plant and equipment decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Accumulated depreciation	2,282)	2,150)	2,274)
Fixed assets, gross	4,523)	3,976)	4,084)
Land	126)	114)	109)
Asset Age Ratio
Average age¹	51.90%	55.67%	57.21%

2022 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Fixed assets, gross – Land)
= 100 × 2,282 ÷ (4,523 – 126) = 51.90%

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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.	Carrier Global Corp. average age ratio of depreciable property, plant and equipment improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Fixed assets, gross	4,523)	3,976)	4,084)
Land	126)	114)	109)
Depreciation expense	256)	238)	234)
Asset Age Ratio (Years)
Estimated total useful life¹	17	16	17

2022 Calculations

¹ Estimated total useful life = (Fixed assets, gross – Land) ÷ Depreciation expense
= (4,523 – 126) ÷ 256 = 17

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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.	Carrier Global Corp. estimated total useful life of depreciable property, plant and equipment decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Accumulated depreciation	2,282)	2,150)	2,274)
Depreciation expense	256)	238)	234)
Asset Age Ratio (Years)
Time elapsed since purchase¹	9	9	10

2022 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 2,282 ÷ 256 = 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.	Carrier Global Corp. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Fixed assets, net	2,241)	1,826)	1,810)
Land	126)	114)	109)
Depreciation expense	256)	238)	234)
Asset Age Ratio (Years)
Estimated remaining life¹	8	7	7

2022 Calculations

¹ Estimated remaining life = (Fixed assets, net – Land) ÷ Depreciation expense
= (2,241 – 126) ÷ 256 = 8

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Asset age ratio	Description	The company
Estimated remaining life		Carrier Global Corp. estimated remaining life of depreciable property, plant and equipment decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Carrier Global Corp. (NYSE:CARR)

Analysis of Property, Plant and Equipment