Property, Plant and Equipment
Property, plant and equipment, net at the end of each period were as follows:
|
| | | | | | | | |
(In Millions) | | Dec 28,
2013 | | Dec 29,
2012 |
Land and buildings | | $ | 21,098 |
| | $ | 18,807 |
|
Machinery and equipment | | 40,540 |
| | 39,033 |
|
Construction in progress | | 11,778 |
| | 8,206 |
|
Total property, plant and equipment, gross | | 73,416 |
| | 66,046 |
|
Less: accumulated depreciation | | (41,988 | ) | | (38,063 | ) |
Total property, plant and equipment, net | | $ | 31,428 |
| | $ | 27,983 |
|
We compute depreciation for financial reporting purposes using the straight-line method. Substantially all of our depreciable property, plant and equipment assets are depreciated over the following estimated useful lives: machinery and equipment, 2 to 4 years; buildings, 10 to 25 years.
We capitalize a majority of interest on borrowings related to eligible capital expenditures. Capitalized interest is added to the cost of qualified assets and amortized over the estimated useful lives of the assets. We record capital-related government grants earned as a reduction to property, plant and equipment.
