How much do depreciation assumptions change Alphabet 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 $199.83B against $15.31B of depreciation and amortization implies an average life of about 13.1 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) |
|---|---|---|---|---|---|
| 2021 | $147.01B | $97.60B | $10.27B | 14.3 | $24.64B |
| 2022 | $171.71B | $112.67B | $13.47B | 12.7 | $31.48B |
| 2023 | $166.67B | $134.34B | $11.95B | 14.0 | $32.25B |
| 2024 | $199.83B | $171.04B | $15.31B | 13.1 | $52.53B |
10-K filed 2026-02-05 · Depreciation
Compare an alternative useful life
A 14-year average life gives an annual charge of $14.27B instead of $15.31B. After tax at 21%, net income would be higher by $819.6M. Cash spending ($52.53B) 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.