How much do depreciation assumptions change Meta Platforms, 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 $31.57B against $4.32B of depreciation and amortization implies an average life of about 7.3 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) |
|---|---|---|---|---|---|
| 2013 | $4.14B | $2.88B | $1.01B | 4.1 | $1.36B |
| 2014 | $5.78B | $3.97B | $1.24B | 4.7 | $1.83B |
| 2015 | $7.82B | $5.69B | $1.95B | 4.0 | $2.52B |
| 2016 | $11.80B | $8.59B | $2.34B | 5.0 | $4.49B |
| 2017 | $18.34B | $13.72B | $3.02B | 6.1 | $6.73B |
| 2018 | $31.57B | $24.68B | $4.32B | 7.3 | $13.91B |
10-K filed 2021-01-28 · DepreciationDepletionAndAmortization
Compare an alternative useful life
A 8-year average life gives an annual charge of $3.95B instead of $4.32B. After tax at 21%, net income would be higher by $291.0M. Cash spending ($13.91B) 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.