The estimated useful lives of property, plant and equipment are described below:
Estimated Useful Life
Land and permanent land improvements
Not depreciated
Limited-life land improvements
Determined on a project-by-project basis
Buildings and building improvements
Up to 40 years
Manufacturing and laboratory equipment
5-12 years
Leasehold improvements
Lesser of estimated useful life of improvement
or remaining life of related lease
Computer equipment and software
3 to 5 years
Furniture, fixtures and other
5 years
Right-of-use asset, financingLease term
Property, plant and equipment, net as of December 31, 2025 and 2024 consisted of the following (in millions):
December 31,
20252024
Land and land improvements$78 $59 
Building and building improvements1,183 743 
Manufacturing and laboratory equipment542 344 
Leasehold improvements403 207 
Furniture, fixtures and other
39 31 
Computer equipment and software
196 150 
Construction in progress
298 1,057 
Right-of-use assets, financing (Note 10)
132 132 
Total
2,871 2,723 
Less: Accumulated depreciation
(737)(527)
Property, plant and equipment, net$2,134 $2,196 

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 21, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 26, 2021

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.