What is Empire District Electric Co Gross Property, Plant and Equipment?
Empire District Electric Co's quarterly gross PPE
increased
from Mar. 2016 ($2,816.2 Mil) to Jun. 2016 ($2,839.3 Mil) and
increased
from Jun. 2016 ($2,839.3 Mil) to Sep. 2016 ($2,858.5 Mil).
Empire District Electric Co's annual gross PPE
increased
from Dec. 2013 ($2,484.7 Mil) to Dec. 2014 ($2,653.7 Mil) and
increased
from Dec. 2014 ($2,653.7 Mil) to Dec. 2015 ($2,785.3 Mil).
Empire District Electric Co Gross Property, Plant and Equipment Historical Data
The historical data trend for Empire District Electric Co's Gross Property, Plant and Equipment can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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Empire District Electric Co Gross Property, Plant and Equipment Chart
Empire District Electric Co Gross Property, Plant and Equipment Calculation
Property, Plant and Equipment (PPE) are the fixed assets of the company. Fixed assets are also known as non-current assets.
Property, plant, and equipment includes assets that will - in the normal course of business - neither be used up in the next year nor will become a part of any product sold to customers.
Some of the most common parts of property, plant, and equipment are:
Companies with lots of property, plant, and equipment often have special categories. For example, railroad property includes:
Track
Ties
Ballast
Bridges
Tunnels
Signals
Locomotives
Freight Cars
There is often a note in the financial statements - found in a company's 10-K - that will explain the different categories of property a company owns.
The market value of property, plant, and equipment can differ tremendously from the book value of property, plant, and equipment.
For example, when Berkshire Hathaway liquidated its textile mills, it had to pay the buyers of the company's manufacturing equipment to haul the equipment away. That property, plant, and equipment was literally worth less than zero. On the other hand, some companies own thousands of acres of land.
All property, plant, and equipment other than land is depreciated. Land is never depreciated. However, land is not marked up to market value either. Under Generally Accepted Accounting Principles (GAAP), land is shown on the balance sheet at cost.
The property, plant, and equipment line shown on the balance sheet is usually net property, plant, and equipment. This means it is the cost of the property, plant, and equipment less accumulated depreciation.
Empire District Electric Co (NYSE:EDE) Gross Property, Plant and Equipment Explanation
A company with durable competitive advantage doesn't need to constantly upgrade its equipment to stay competitive. The company replaces when it wears out. On the other hand, a company without any advantages must replace to keep pace.
Difference between a company with a moat and one without is that the company with the competitive advantage finances new equipment through internal cash flows, whereas the no advantage company requires debt to finance.
Producing a consistent product that doesn't change equates to consistent profits. There is no need to upgrade plants which frees up cash for other ventures. Think Coca Cola, Johnson & Johnson etc.
Empire District Electric Co Gross Property, Plant and Equipment Related Terms
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Empire District Electric Co (Empire District Electric Co) Business Description
Empire District Electric Co is a Kansas corporation organized in 1909. The Company is an operating public utility engaged in the generation, purchase, transmission, distribution and sale of electricity in parts of Missouri, Kansas, Oklahoma and Arkansas. The Company operates its businesses as three segments; Electric, Gas and Other. The Company also provides water service to three towns in Missouri. The Company, along with its subsidiary The Empire District Gas Company, is engaged in the distribution of natural gas in Missouri. The Other segment consists of fiber optics business. As of December 31, 2013 the Company's electric operations serve approximately 168,800 customers and gas operations serve approximately 44,000 customers. The territory served by electric operations embraces an area of about 10,000 square miles, located principally in southwestern Missouri, and also includes smaller areas in southeastern Kansas, northeastern Oklahoma and northwestern Arkansas. The Company supplies electric service at retail to 119 incorporated communities as of December 31, 2013, and to various unincorporated areas and at wholesale to four municipally owned distribution systems. The Company operates under franchises having original terms of twenty years or longer in the incorporated communities. The three largest classes of on-system customers are residential, commercial and industrial. The largest single on-system wholesale customer is the city of Monett, Missouri. The Company currently supplements its on-system generating capacity with purchases of capacity and energy from other sources in order to meet the demands of its customers and the capacity margins applicable under current pooling agreements and National Electric Reliability Council rules. The generating facilities consist of three coal-fired generating plants, two natural gas generating plants and one hydroelectric generating plant. The Company's gas operations serve customers in northwest, north central and west central Missouri. As of December 31, 2013, gas operations served approximately 44,000 customers. The Company provides natural gas distribution to 48 communities and 377 transportation customers as of December 31, 2013. At December 31, 2013 the principal gas utility properties of the Company consisted of approximately 87 miles of transmission mains and approximately 1,160 miles of distribution mains. The three pipelines that serve the Company's gas customers are Southern Star Central Gas Pipeline, Panhandle Eastern Pipe Line Company and ANR Pipeline Company. The Company is subject to the jurisdiction of the Missouri Public Service Commission (MPSC), the State Corporation Commission of the State of Kansas (KCC), the Corporation Commission of Oklahoma (OCC) and the Arkansas Public Service Commission (APSC) with respect to services and facilities, rates and charges, regulatory accounting, valuation of property, depreciation and various other matters.
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