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National Grid PLC (NYSE:NGG)
Property, Plant and Equipment
$61,118 Mil (As of Sep. 2016)

National Grid PLC's quarterly net PPE declined from Sep. 2015 ($63,606 Mil) to Mar. 2016 ($61,772 Mil) and declined from Mar. 2016 ($61,772 Mil) to Sep. 2016 ($61,118 Mil).

National Grid PLC's annual net PPE declined from Mar. 2014 ($61,759 Mil) to Mar. 2015 ($60,871 Mil) but then increased from Mar. 2015 ($60,871 Mil) to Mar. 2016 ($61,772 Mil).


Property, Plant and Equipment (PPE) are the fixed assets of the companyFixed 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:

• Land
• Buildings (and leasehold improvements)
• Transportation equipment
• Manufacturing equipment
• Office equipment
• Office furniture

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.


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.

Related Terms

Total Assets, Accumulated Depreciation, Gross Property, Plant and Equipment

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

National Grid PLC Annual Data

Net PPE 36,76148,66241,84846,46851,62553,32455,19261,75960,87161,772

National Grid PLC Semi-Annual Data

Net PPE 53,32455,87955,19258,27661,75962,46160,87163,60661,77261,118
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