Property and equipment are stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows:
Computer equipment and software
3-5 years
Furniture and fixtures
3-7 years
Leasehold and other improvements
shorter of the lease term or 10 years
Property and equipment, net consists of the following (in millions):
 December 31,
 20252024
Computer equipment$3,332 $2,697 
Computer software126 106 
Leasehold and other improvements433 320 
Furniture and fixtures117 85 
Construction in progress117 63 
Property and equipment, gross4,125 3,271 
Less: Accumulated depreciation(1,836)(1,508)
Property and equipment, net$2,289 $1,763 

Historical Timeline

Fiscal YearFiled
2025Jan 29, 2026Showing above
2024Jan 30, 2025
2023Jan 25, 2024
2022Jan 31, 2023
2021Feb 3, 2022
2020Feb 12, 2021
2019Feb 20, 2020
2018Feb 28, 2018
2016Feb 28, 2017
2015Feb 25, 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.