Depreciation is recognized using the methods and estimated useful lives as follows:
 Depreciation method
Estimated useful lives (in years)
Computers and other equipmentStraight-line or declining-balance
2-15
Buildings Straight-line
Not to exceed 40
Building improvements and leasehold improvements
Straight-lineShorter of useful life of asset or remaining lease term
Vehicles and transportation equipmentStraight-line
3-15
Office furniture and fixturesStraight-line or declining-balance
6-9
Property, plant and equipment, net consisted of the following:
 (in millions)
January 2,
2026
January 3,
2025
Computers and other equipment$474 $473 
Leasehold improvements590 567 
Vehicles and transportation equipment400 321 
Buildings and improvements137 137 
Office furniture and fixtures79 78 
Land17 17 
Construction-in-progress84 107 
 1,781 1,700 
Less: accumulated depreciation and amortization(820)(709)
 $961 $991 

Historical Timeline

Fiscal YearFiled
2026Feb 17, 2026Showing above
2025Feb 11, 2025
2023Feb 13, 2024
2022Feb 14, 2023
2021Feb 23, 2021
2020Feb 18, 2020
2018Feb 19, 2019
2017Feb 23, 2018
2016Feb 24, 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.