The components of property, equipment and leasehold improvements, net were as follows:
(Dollars in millions)Useful Life in YearsJune 27,
2025
June 28,
2024
Land and land improvements $18 $18 
Equipment
3 – 10
8,566 8,632 
Buildings and leasehold improvements
Up to 30
1,413 1,412 
Construction in progress 333 198 
Gross property, equipment and leasehold improvements 10,330 10,260 
Less: accumulated depreciation and amortization (8,673)(8,646)
Property, equipment and leasehold improvements, net $1,657 $1,614 

Historical Timeline

Fiscal YearFiled
2025Aug 1, 2025Showing above
2024Aug 2, 2024

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.