Property and equipment are depreciated or amortized using the straight-line method over the estimated useful lives of the following assets below.
| | | | | | | | | | | |
| Estimated Useful Life (in Years) |
| Machinery and equipment | 2 | - | 10 |
| Office equipment and software | 3 | - | 5 |
| Furniture and fixtures | 3 | - | 5 |
| Building | 33 |
| Leasehold improvements | Shorter of the economic life or the remaining lease term |
| | | | | | | | | | | |
| December 28, 2025 | | December 29,
2024 |
| Machinery and equipment | $ | 135,082 | | | $ | 112,635 | |
| Building and leasehold improvements | 42,875 | | | 33,658 | |
| Office equipment and software | 5,958 | | | 5,411 | |
| Furniture and fixtures | 17,380 | | | 16,821 | |
| Land | 5,166 | | | 1,433 | |
| Construction in process | 13,521 | | | 18,990 | |
| Total property and equipment | 219,982 | | | 188,948 | |
| Less: accumulated depreciation | (49,719) | | | (21,001) | |
| Property and equipment, net | $ | 170,263 | | | $ | 167,947 | |
The following table summarizes the depreciation and amortization expenses related to property and equipment, which were recorded within cost of revenue, research and development expense and selling, general and administrative expense in the Consolidated Statements of Operations (in thousands).
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Fiscal Years |
| | | | | | | | | 2025 | | 2024 | | 2023 |
| Depreciation expense | | | | | | | | | $ | 28,923 | | | $ | 38,183 | | | $ | 33,870 | |
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.