How much do depreciation assumptions change Advanced Micro Devices Inc'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 $4.93B against $521.0M of depreciation and amortization implies an average life of about 9.5 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 | $1.55B | $641.0M | $217.0M | 7.2 | $294.0M |
| 2021 | $1.84B | $702.0M | $296.0M | 6.2 | $301.0M |
| 2022 | $3.02B | $1.51B | $439.0M | 6.9 | $450.0M |
| 2023 | $3.38B | $1.59B | $441.0M | 7.7 | $546.0M |
| 2024 | $3.98B | $1.80B | $454.0M | 8.8 | $636.0M |
| 2025 | $4.93B | $2.31B | $521.0M | 9.5 | $974.0M |
10-K filed 2026-02-04 · Depreciation
Compare an alternative useful life
A 10-year average life gives an annual charge of $492.8M instead of $521.0M. After tax at 21%, net income would be higher by $22.3M. Cash spending ($974.0M) 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.