The following table presents property, plant and equipment by geographic area as of December 31:
In millions20252024
Property, plant and equipment, net
United States$141 $160 
Americas (excluding United States)3 
Europe, Middle East and Africa22 24 
Asia Pacific8 
Consolidated property, plant and equipment, net$174 $192 
The components of property, plant and equipment, net are summarized as follows:
In millionsDecember 31, 2025December 31, 2024
Property, plant and equipment
Land and improvements$1 $
Buildings and improvements204 227 
Machinery and other equipment502 493 
Finance lease assets100 81 
Property, plant and equipment, gross807 803 
Less: accumulated depreciation(633)(611)
Total property, plant and equipment, net$174 $192 

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.