Kellogg Company and Kraft Heinz Company, Inc. are two companies operating in the packaged food industry. You have noticed their products in numerous grocery and convenience stores and are interested in their production process. Your first step is to analyze the information on their productive capacity. Examine the fixed asset disclosures in that two companies' financial statements to address the following issues:
a. What categories of tangible long-lived assets does each company report? What is the useful life of each category? Compare the categories and useful lives disclosed by each company.
b. For each company, what is the percent of long-lived tangible assets to total assets in 2016 and 2015? In the definition of long-lived tangible assets, include the total of property. plant, and equipment (PPE) - net. Comment on any differences between the two companies.
c. Compute average age and average remaining life for 2016 and 2015. Comment on any differences between the two companies.
d. Compute the fixed asset turnover in 2016. In the definition of long-lived tangible assets (fixed assets), include the total property, plant, and equipment (PPE) - net. Comment on any differences between the two companies.

NOTE 1: Accounting Policies
Property
The Company's property consists mainly of plants and equipment used for manufacturing activities. These assets are recorded at cost and depreciated over estimated useful lives using straight-line methods for financial reporting and accelerated methods. where permitted, for tax reporting. Major property categories are depreciated over various periods as follows (in years): manufacturing machinery and equipment 5-30; office equipment 4-5; computer equipment and capitalized software 3-7; building components 15-25; building structures 50. Cost includes interest associated with significant capital projects ....

Kraft Heinz Company, Inc

NOTE 1: Summary of Significant Accounting Policies (excerpt)

Property Plant and Equipment:

Property, plant, and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from 3 to 20 years and buildings and improvements over periods u p to 40 years ...

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NOTE 19: Supplemental Financial Statement Data 2016 2015 $ 142 2 076 $ 131 Land Bu ldings 2,020 Machinery and equipment 5617 5,646 Cap talized software 328 366 Corstruct an in progress 686 694 Accumulated depreciat on (5,236) 15,280) $ 3,569 Property, net $3.621 Additional financial statement infonnation: (dollars in millions) 2016 2015 $ 13525 $ 526 $ 15,251 $ 3,695 $ 13,014 $ 510 $ 15, 111 $ 3,595 Revenues Depreciat on Expense Total Assets Average Net Fixed Assets NOTE 5: Property, Plant, and Equipment Property, Plant, and Equipment Property plant, and equpment at December 31, 2016 and January 3, 2016 were t n mil ions): (in mällions) December 31, 2016 January 3, 2016 Land $ 264 S 297 Buldings and improvements 1,884 1,700 Machinery and equ pment 4,770 4,432 Construct on nprogress 1,600 1,001 8,518 7.430 Accumulated depreciat on (1, 830) (906) Propeity plant, and equipment, net $6,688 $6 524 Additional financial statement infornation: (dollars in millions) 2016 2015 $ 26,487 $ 1,337 Revenues $ 18338 Depreciat on Expense 740 Total Assets $120,48 0 $122 973 Average Net Fixed Assets $ 6,606 $ 4,445