How much do depreciation assumptions change Abbott Laboratories's earnings?
Gross property and equipment, depreciation and capital spending, with an alternative useful-life calculator. Cash spending is kept separate.
Depreciation against the asset base
Gross property and equipment of $25.22B against $1.43B of depreciation and amortization implies an average life of about 17.6 years (gross assets ÷ annual charge). The charge includes amortization where the company reports them together.
| Fiscal year | Gross PP&E | Net PP&E | Depreciation & amortization | Implied life (yrs) | Capital expenditure (cash) |
|---|---|---|---|---|---|
| 2020 | $18.79B | $9.03B | $1.20B | 15.7 | $2.18B |
| 2021 | $19.36B | $8.96B | $1.49B | 13.0 | $1.89B |
| 2022 | $20.21B | $9.16B | $1.25B | 16.1 | $1.78B |
| 2023 | $21.93B | $10.15B | $1.28B | 17.2 | $2.20B |
| 2024 | $22.74B | $10.66B | $1.34B | 17.0 | $2.21B |
| 2025 | $25.22B | $11.82B | $1.43B | 17.6 | $2.17B |
10-K filed 2026-02-20 · Depreciation
Compare an alternative useful life
A 19-year average life gives an annual charge of $1.33B instead of $1.43B. After tax at 21%, net income would be higher by $84.2M. Cash spending ($2.17B) is unchanged.
Straight-line on gross assets, no salvage value; land and construction in progress are not separated. Treat as an order-of-magnitude comparison.