Useful lives are as follows:
Buildings
8 to 33 years
Service vehicles
3 to 13 years
Machinery and equipment
1 to 15 years
Computer equipment
1 to 5 years
Furniture and fixtures
2 to 10 years
Leasehold improvementsThe lesser of the asset life or expected lease term including lease extension options.
Property and equipment consists of the following (in millions):
December 31, 2025December 31, 2024
Land and buildings$194 $136 
Service vehicles819 591 
Leasehold improvements201 142 
Machinery and equipment52 33 
Computer equipment and software15 16 
Furniture and fixtures24 19 
Construction in progress50 22 
Property and equipment, gross1,355 959 
Less: accumulated depreciation(487)(405)
Property and equipment, net$868 $554 
The Company leases certain of its service vehicles, office equipment, and buildings under finance leases. Depreciation of assets held under finance leases is included in depreciation expense. The gross amounts of property and equipment and related depreciation recorded under finance leases, included in the table above, were as follows (in millions):
December 31, 2025December 31, 2024
Service vehicles$137 $124 
Leased building— 
Furniture and fixtures
Finance lease assets, gross147 126 
Less: accumulated depreciation(70)(52)
Finance lease assets, net$77 $74 

The Company has entered into financing obligations to lease certain of its properties as discussed further in Note 12, "Financing Obligations." Depreciation of assets held under financing obligations is included in depreciation expense. The gross amounts of land, building and leasehold improvements and related depreciation recorded under financing obligations, included in the table above, were as follows (in millions):
December 31, 2025December 31, 2024
Land, building and leasehold improvements$72 $72 
Less: accumulated depreciation(44)(42)
Net assets under financing obligations$28 $30 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 13, 2025
2023Feb 13, 2024
2022Feb 14, 2023
2021Feb 10, 2022
2020Feb 18, 2021
2019Feb 27, 2020
2018Feb 28, 2019
2017Feb 28, 2018
2016Mar 15, 2017

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.