Except for leasehold improvements, depreciation and amortization is computed by the straight-line method over the assets estimated useful lives:
Property, Plant and Equipment Assets Type
Useful Life
Buildings
25 to 40 years
Machinery and Equipment
2 to 20 years
Capitalized Software
3 to 10 years
Leasehold ImprovementsShorter of the estimated useful life or the term of the lease
Property, plant and equipment, net, were as follows:
Year Ended December 31,
(in millions)20252024
Land$52 $46 
Buildings and improvements638 571 
Machinery and equipment995 887 
Capitalized software614 516 
Construction in progress134 87 
 $2,433 $2,107 
Less: Accumulated depreciation and amortization1,572 1,341 
Property, plant and equipment, net$861 $766 
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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.