How much do depreciation assumptions change Air Products And Chemicals, 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 $42.75B against $1.56B of depreciation and amortization implies an average life of about 27.3 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 | $25.18B | $11.96B | $1.19B | 21.2 | $2.51B |
| 2021 | $27.49B | $13.25B | $1.32B | 20.8 | $2.46B |
| 2022 | $28.16B | $14.16B | $1.34B | 21.0 | $2.93B |
| 2023 | $32.75B | $17.47B | $1.36B | 24.1 | $4.63B |
| 2024 | $39.95B | $23.37B | $1.45B | 27.5 | $6.80B |
| 2025 | $42.75B | $25.34B | $1.56B | 27.3 | $7.02B |
10-K filed 2025-11-20 · DepreciationDepletionAndAmortization
Compare an alternative useful life
A 28-year average life gives an annual charge of $1.53B instead of $1.56B. After tax at 21%, net income would be higher by $29.4M. Cash spending ($7.02B) 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.