GURUFOCUS.COM » STOCK LIST » USA » NAS » 22nd Century Group Inc (NAS:XXII) » Definitions » Depreciation, Depletion and Amortization
Switch to:

22nd Century Group (NAS:XXII) Depreciation, Depletion and Amortization

: $3.59 Mil (TTM As of Dec. 2022)
View and export this data going back to 2011. Start your Free Trial

22nd Century Group's depreciation, depletion and amortization for the three months ended in Dec. 2022 was $1.07 Mil. Its depreciation, depletion and amortization for the trailing twelve months (TTM) ended in Dec. 2022 was $3.59 Mil.


22nd Century Group Depreciation, Depletion and Amortization Historical Data

The historical data trend for 22nd Century Group's Depreciation, Depletion and Amortization 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.

* Premium members only.

22nd Century Group Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Depreciation, Depletion and Amortization
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.34 1.64 1.53 1.54 3.59

22nd Century Group Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Depreciation, Depletion and Amortization Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.39 0.42 0.74 1.35 1.07

22nd Century Group Depreciation, Depletion and Amortization Calculation

Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.

Depletion and amortization are synonyms for depreciation.

Generally:
The term depreciation is used when discussing man made tangible assets
The term depletion is used when discussing natural tangible assets
The term amortization is used when discussing intangible assets

Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.59 Mil.


* 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.


22nd Century Group  (NAS:XXII) Depreciation, Depletion and Amortization Explanation

One of the key tenets of Generally Accepted Accounting Principles (GAAP) is the matching principle. The matching principle states that companies should report associated costs and benefits at the same time.

For example:

If a company buys a $300 million cruise ship in 1982 and then sells tickets to passengers for the next 30 years, the company should not report a $300 million expense in 1982 and then ticket sales for 1982 through 2012. Instead, the company should spread the purchase price of the ship (the cost) over the same time period it sells tickets (the benefit).

To create income statements that meet the matching principle, accountants use an expense called depreciation.

So, instead of reporting a $300 million purchase expense in 1982, the company might:

Report a $30 million depreciation expense in 1982, 1983, 1984...and every year after that for the 30 years the company expects to sell tickets to passengers on this cruise ship.

To calculate depreciation, a company must make estimates and choices such as:

The cost of the asset
The useful life of the asset
The salvage value of the asset at the end of its useful life
And a way of spreading the cost of the asset to match the time when the asset provides benefits

The range of different ways of spreading the cost under GAAP accounting is too long to list. However, public companies in the United States explain their depreciation choices to shareholders in a note to their financial statements. It is critical that investors read this note. Investors can find this note in the company's 10-K.

Past depreciation expenses accumulate on the balance sheet. Most public companies choose not to show this contra asset account on the balance sheet they present to shareholders. Instead, they simply show a single item. This single asset item may be marked Net. Such as Property, Plant, and Equipment - Net. It is actually the asset account netted against the contra asset account.

A contra asset account is an account that offsets an asset account. So, for example a company might have:

Property, Plant, and Equipment - Gross: $150 million
Accumulated Depreciation: $120 million
Property, Plant, and Equipment - Net: $30 million

In this case, the only item likely to be shown on the balance sheet is Property, Plant, and Equipment - Net. This is the cost of the company's property, plant, and equipment (asset account) minus the accumulated depreciation (the contra asset account). It means the company's assets cost $150 million, the company has reported $120 million in depreciation expense over the years, and the company is now reporting the assets have a book value of $30 million.

It is possible for a company to have fully depreciated assets on its balance sheet. This means the company's estimate of the useful life of the asset was shorter than the asset's actual useful life. As a result, the asset - although it is still being used - is carried on the balance sheet at its salvage value.

This is a reminder that depreciation involves estimates and choices. It is not an infallible process.

Companies do not have cash layout for depreciation. Therefore, depreciation is added back in the cash flow statement.

Although depreciation is not a cash cost, it is a real business cost because the company has to pay for the fixed assets when it purchases them. Both Warren Buffett and Charlie Munger hate the idea of EDITDA because depreciation is not included as an expense. Warren Buffett even jokingly said We prefer earnings before everything when criticizing the abuse of EDITDA.


Be Aware

Depreciation estimates make the calculation of net income susceptible to management's accounting choices. These choices can be either overly aggressive or overly conservative.


22nd Century Group Depreciation, Depletion and Amortization Related Terms

Thank you for viewing the detailed overview of 22nd Century Group's Depreciation, Depletion and Amortization provided by GuruFocus.com. Please click on the following links to see related term pages.


22nd Century Group (NAS:XXII) Business Description

22nd Century Group logo
Industry
Traded in Other Exchanges
N/A
Address
500 Seneca Street, Suite 507, Buffalo, NY, USA, 14204
22nd Century Group Inc is a US-based plant biotechnology company. It focuses on developing technology that allows the increase or decrease in the level of nicotine and other nicotinic alkaloids in tobacco plants and levels of cannabinoids in cannabis plants through genetic engineering and plant breeding. The company is engaged in the research and development of potentially less harmful or modified risk tobacco products and novel tobacco plant varieties. Other business activities of the company include manufacture, marketing, sales, and distribution of SPECTRUM and VLN proprietary cigarettes, contract manufacturing of third-party branded tobacco products, research and development of plant varieties of hemp/cannabis, the sale of branded proprietary tobaccos, and among others.
Executives
John J Miller officer: President, Tobacco 500 SENECA STREET, SUITE 507, BUFFALO NY 14204
Lucille S Salhany director C/O HEWLETT-PACKARD CO, 3000 HANOVER STREET, PALO ALTO CA 94304
Robert Hugh Kinsman officer: Chief Financial Officer 500 SENECA STREET, SUITE 507, BUFFALO NY 14204
Clifford B Fleet director 6601 WEST BROAD STREET, RICHMOND VA 23230
Richard F Fitzgerald officer: Chief Financial Officer C/O TECHPRECISION CORPORATION, ONE BELLA DRIVE, WESTMINSTER MA 01473
Anthony L. Johnson director C/O 22ND CENTURY GROUP, INC., 500 SENECA STREET, SUITE 507, BUFFALO NY 14204
Michael Koganov director 8560 MAIN STREET, SUITE 4, WILLIAMSVILLE NY 14221
James A Mish officer: Chief Executive Officer 8560 MAIN STREET, SUITE 4, WILLIAMSVILLE NY 14221
John Franzino officer: CFO 8560 MAIN STREET, SUITE 4, WILLIAMSVILLE NY 14221
Roger D O'brien director C/O 22ND CENTURY GROUP, INC., 8560 MAIN STREET, SUITE 4, WILLIAMSVILLE NY 14221
Andrea S Jentsch officer: Chief Financial Officer 8560 MAIN STREET, SUITE 4, WILLIAMSVILLE NY 14221
Michael Zercher officer: Chief Operating Officer 8560 MAIN STREET, SUITE 4, WILLIAMSVILLE NY 14221
James E. Swauger officer: Senior VP-Science & Regulatory C/O 22ND CENTURY GROUP, INC., 9530 MAIN STREET, CLARENCE NY 14031
Paul Rushton officer: VP of Plant Biotechnology C/O 22ND CENTURY GROUP, INC., 9530 MAIN STREET, CLARENCE NY 14031
Nora B Sullivan director C/O RAND CAPITAL CORP, 2200 RAND BLDG, BUFFALO NY 14203

22nd Century Group (NAS:XXII) Headlines

Other Sources