Property, Plant and Equipment

12 Months Ended

Dec. 30, 2012

Property, Plant and Equipment [Abstract]

At the end of 2012 and 2011, property, plant and equipment at cost and accumulated depreciation were:



(Dollars in Millions)	2012		2011
Land and land improvements	$	793	754
Buildings and building equipment	10,046		9,389
Machinery and equipment	21,075		19,182
Construction in progress	2,740		2,504
Total property, plant and equipment, gross	$	34,654	31,829
Less accumulated depreciation	18,557		17,090
Total property, plant and equipment, net	$	16,097	14,739

The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense capitalized in 2012, 2011 and 2010 was $115 million, $84 million and $73 million, respectively.

Depreciation expense, including the amortization of capitalized interest in 2012, 2011 and 2010, was $2.5 billion, $2.3 billion and $2.2 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.

- 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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