Property, Plant, and Equipment

6 Months Ended

Feb. 27, 2020

Property, Plant and Equipment [Abstract]


As of	February 27, 2020		August 29, 2019

Land	$	352	$	352
Buildings	11,682		10,931
Equipment ⁽¹⁾	46,577		44,051
Construction in progress ⁽²⁾	2,119		1,700
Software	811		790
	61,541		57,824
Accumulated depreciation	(31,894)		(29,584)
	$	29,647	$	28,240

⁽¹⁾Included costs related to equipment not placed into service of $1.38 billion as of February 27, 2020 and $2.33 billion as of August 29, 2019.

⁽²⁾Included building-related construction, tool installation, and software costs for assets not placed into service.

We periodically assess the estimated useful lives of our property, plant, and equipment. Based on our assessment of planned technology node transitions, capital spending, and re-use rates, we revised the estimated useful lives of the existing equipment in our NAND wafer fabrication facilities and our research and development (“R&D”) facilities from five years to seven years as of the beginning of the first quarter of 2020. As a result, we estimate the reduction in non-cash depreciation expense for these assets benefited operating income and net income by approximately $125 million and diluted earnings per share by approximately $0.11 for the second quarter of 2020, and benefited operating income and net income by approximately $200 million and diluted earnings per share by approximately $0.17 for the first six months of 2020.