Property, Plant and Equipment

12 Months Ended

Jan. 01, 2017

Property, Plant and Equipment [Abstract]

At the end of 2016 and 2015, property, plant and equipment at cost and accumulated depreciation were:



(Dollars in Millions)	2016		2015
Land and land improvements	$	753	780
Buildings and building equipment	10,112		9,829
Machinery and equipment	23,554		22,511
Construction in progress	3,354		3,528
Total property, plant and equipment, gross	$	37,773	36,648
Less accumulated depreciation	21,861		20,743
Total property, plant and equipment, net	$	15,912	15,905

The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense capitalized in 2016, 2015 and 2014 was $102 million, $102 million and $115 million, respectively.

Depreciation expense, including the amortization of capitalized interest was $2.5 billion in 2016, 2015 and 2014.

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.