Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows:
Useful Lives
Buildings and building improvements
7 to 39 years
Computer equipment and software
2 to 12 years
Demonstration units
2 to 3 years
Furniture and office equipment
2 to 15 years
Leasehold improvementsLesser of useful life or term of lease
Machinery, equipment, tooling and others
3 to 20 years
Operating lease assetsLesser of useful life or term of lease
Property and equipment, net, consists of the following:
(in millions)January 3,
2026
December 28,
2024
Operating lease assets$204.1 $148.6 
Building and building improvements151.8 143.5 
Machinery, equipment, tooling and others150.6 147.1 
Land47.7 47.7 
Computer equipment and software41.3 38.7 
Leasehold improvements34.3 31.2 
Construction-in-progress (CIP)24.5 29.0 
Furniture and office equipment16.5 15.8 
Demonstration units0.5 0.5 
Total property and equipment(1)
671.3 602.1 
Accumulated depreciation(316.2)(265.1)
Property and equipment, net
$355.1 $337.0 
______________
(1)    In October 2024, the Company grounded the corporate aircraft and started exploring disposition strategies. In December 2024, the Company entered into an letter of intent to sell the aircraft, and classified the asset as held for sale within the healthcare segment as of December 28, 2024. On January 29, 2025, the Company completed the sale of the corporate aircraft for $19.5 million.
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Historical Timeline

Fiscal YearFiled
2026Feb 27, 2026Showing above
2024Feb 25, 2025
2023Feb 28, 2024
2022Feb 16, 2022
2021Feb 23, 2021
2019Feb 19, 2020
2018Feb 26, 2019
2017Feb 28, 2018
2016Feb 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.