How much do depreciation assumptions change Archer-Daniels-Midland Co'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 $30.20B against $1.18B of depreciation and amortization implies an average life of about 25.6 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 | $26.17B | $9.78B | $976.0M | 26.8 | $823.0M |
| 2021 | $26.22B | $9.80B | $996.0M | 26.3 | $1.17B |
| 2022 | $26.77B | $9.93B | $1.03B | 26.0 | $1.32B |
| 2023 | $28.03B | $10.51B | $1.06B | 26.5 | $1.49B |
| 2024 | $28.90B | $10.84B | $1.14B | 25.3 | $1.56B |
| 2025 | $30.20B | $11.18B | $1.18B | 25.6 | $1.25B |
10-K filed 2026-02-17 · DepreciationDepletionAndAmortization
Compare an alternative useful life
A 27-year average life gives an annual charge of $1.12B instead of $1.18B. After tax at 21%, net income would be higher by $49.4M. Cash spending ($1.25B) 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.