Property, plant and equipment, net, are summarized below:
(In millions)January 2, 2026January 3, 2025
Land$140 $182 
Software capitalized for internal use886 795 
Buildings1,669 1,633 
Machinery and equipment3,171 3,032 
Property, plant and equipment
5,866 5,642 
Accumulated depreciation and amortization(3,201)(2,836)
Property, plant and equipment, net(1)
$2,665 $2,806 
_______________
(1)    In connection with the pending divestiture of the Space Technology disposal group, $115 million of property, plant and equipment, net was reclassified to held for sale in our Consolidated Balance Sheet as of January 2, 2026.
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Historical Timeline

Fiscal YearFiled
2026Feb 12, 2026Showing above
2025Feb 14, 2025
2023Feb 20, 2024
2022Feb 24, 2023
2021Mar 1, 2021
2019Aug 22, 2019
2018Aug 27, 2018
2017Aug 29, 2017
2016Aug 29, 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.