Property, Plant and Equipment

12 Months Ended

Dec. 29, 2019

Property, Plant and Equipment [Abstract]

At the end of 2019 and 2018, property, plant and equipment at cost and accumulated depreciation were:



(Dollars in Millions)	2019		2018
Land and land improvements	$	854	807
Buildings and building equipment	11,877		11,176
Machinery and equipment	26,964		25,992
Construction in progress	3,637		3,876
Total property, plant and equipment, gross	$	43,332	41,851
Less accumulated depreciation	25,674		24,816
Total property, plant and equipment, net⁽¹⁾	$	17,658	17,035

⁽¹⁾ See Note 20 to the Consolidated Financial Statements for details on assets held for sale and the related divestitures.

The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense capitalized in 2019, 2018 and 2017 was $70 million, $86 million and $94 million, respectively.

Depreciation expense, including the amortization of capitalized interest in 2019, 2018 and 2017 was $2.5 billion, $2.6 billion and $2.6 billion, respectively.

Upon retirement or other disposal of property, plant and equipment, the costs and related amounts of accumulated depreciation or amortization are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds are recorded in earnings.