Plant and Equipment

12 Months Ended

Jun. 30, 2012

6. PLANT AND EQUIPMENT

A summary of plant and equipment, including the related accumulated depreciation, appears below:



	June 30, 2012		July 2, 2011		Estimated Useful Lives
	(In thousands)
Plant and equipment, at cost:
Land	$	352,812	$	348,168
Buildings and improvements		3,510,627		3,227,340	10-30 years
Fleet and equipment		2,449,018		2,275,007	3-10 years
Computer hardware and software		1,028,594		897,712	3-7 years
		7,341,051		6,748,227
Accumulated depreciation		(3,457,301)		(3,235,838)
Net plant and equipment	$	3,883,750	$	3,512,389

The capitalized direct costs for the internal use software portion of the company’s Business Transformation Project are included within “computer hardware and software” in the table above in the amount of $469.4 million and $356.2 million as of June 30, 2012 and July 2, 2011, respectively. The majority of this internal use software related to the Business Transformation Project will be placed into service and begin amortization in August of fiscal 2013.

Depreciation expense, including capital leases, for the past three years was $384.9 million in 2012, $374.0 million in 2011 and $361.7 million in 2010.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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