Denali Therapeutics Inc.DNLI

Denali Therapeutics Inc. PP&E Disclosure

10-KFiled Feb 26, 20261 min read
Depreciation is computed using the straight-line method over the related estimated useful lives as presented in the table below. Significant additions and improvements are capitalized, while repairs and maintenance are charged to expense as incurred.
AssetEstimated useful life
Leasehold improvements
shorter of life of asset or lease term
Computer equipment and purchased softwarethree years
Laboratory equipmentfive years
Furniture and fixturesfive years
Manufacturing equipmenteight years

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValueSegmentsCommitmentsStock CompensationNew StandardsPay vs Performance