Excluding land and assets not yet placed into service, property and equipment are amortized using the straight-line method over the estimated useful lives of the property and equipment as follows:
AssetRate
Building and building improvements
20-40 years
Equipment
3-10 years
Property and equipment, net consisted of the following:
December 31,
20242025
Land$53,405 $53,405 
Building and improvements175,805 193,160 
Equipment84,288 102,935 
Operating lease right-of-use assets (Note 8)66,649 136,117 
Property and equipment380,147 485,617 
Less: accumulated depreciation(39,718)(57,614)
Property and equipment, net$340,429 $428,003 
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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.