Property, plant and equipment and leasing equipment are stated at cost (inclusive of capitalized acquisition costs, where applicable) and depreciated using the straight-line method, over its estimated useful lives, to estimated residual values which are summarized as follows:
AssetRange of Estimated Useful LivesResidual Value Estimates
Aircraft
25 years from date of manufacture
Generally not to exceed 15% of manufacturer’s list price when new
Aircraft engines
2 - 6 years, based on maintenance adjusted service life
Sum of engine core salvage value plus the estimated fair value of life limited parts
Aviation tooling and equipment
3 - 6 years from date of purchase
Scrap value at end of useful life
Buildings and improvements
40 to 50 years
Scrap value at end of useful life
Machinery and equipment
6 - 23 years
Scrap value at end of useful life
Furniture and fixtures
3 - 6 years from date of purchase
None
Computer hardware and software
2 - 5 years from date of purchase
None
LandN/AN/A
Construction in progressN/AN/A
Other
5 - 7 years
N/A

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 3, 2025
2023Feb 26, 2024
2022Feb 27, 2023
2021Feb 28, 2022
2020Feb 26, 2021
2019Feb 28, 2020
2018Feb 28, 2019
2017Mar 1, 2018
2016Feb 24, 2017
2015Mar 10, 2016

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.