We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives:
Buildings34 years
Equipment
3 - 10 years
Information technology hardware and software (a)
2 - 5 years
Furniture and fixtures6 years
Leasehold improvements(b)
5 - 10 years
P&E under finance leases (b)
10 years
____________
(a)Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software.
(b)Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured.
In thousandsAs of
January 3, 2026
As of
December 28, 2024
Property and equipment, net:
Land and building$3,736 $3,736 
Equipment315,231 299,823 
Information technology hardware and software123,294 128,654 
Furniture and fixtures88,514 85,061 
Leasehold improvements386,329 360,927 
Construction in progress34,711 31,620 
Right of use assets under finance leases36,219 36,219 
988,034 946,040 
Less: Accumulated depreciation(643,415)(583,865)
$344,619 $362,175 

Historical Timeline

Fiscal YearFiled
2026Mar 4, 2026Showing above
2024Feb 26, 2025
2023Feb 27, 2024
2022Feb 28, 2022

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.