Property, Plant and Equipment

12 Months Ended

Jan. 02, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

At the end of fiscal years 2021 and 2020, property, plant and equipment at cost and accumulated depreciation were:

(Dollars in Millions)	2021		2020
Land and land improvements	$	884	882
Buildings and building equipment	12,882		12,502
Machinery and equipment	29,774		29,104
Construction in progress	4,139		4,316
Total property, plant and equipment, gross	$	47,679	46,804
Less accumulated depreciation	28,717		28,038
Total property, plant and equipment, net(1)	$	18,962	18,766

The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense capitalized in fiscal years 2021, 2020 and 2019 was $49 million, $63 million and $70 million, respectively.

Depreciation expense, including the amortization of capitalized interest in fiscal years 2021, 2020 and 2019 was $2.7 billion, $2.6 billion and $2.5 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.