INTEL CORP | 2013 | FY | 3


Property, Plant and Equipment
Property, plant and equipment, net at the end of each period were as follows:
(In Millions)
 
Dec 28,
2013
 
Dec 29,
2012
Land and buildings
 
$
21,098

 
$
18,807

Machinery and equipment
 
40,540

 
39,033

Construction in progress
 
11,778

 
8,206

Total property, plant and equipment, gross
 
73,416

 
66,046

Less: accumulated depreciation
 
(41,988
)
 
(38,063
)
Total property, plant and equipment, net
 
$
31,428

 
$
27,983


We compute depreciation for financial reporting purposes using the straight-line method. Substantially all of our depreciable property, plant and equipment assets are depreciated over the following estimated useful lives: machinery and equipment, 2 to 4 years; buildings, 10 to 25 years.
We capitalize a majority of interest on borrowings related to eligible capital expenditures. Capitalized interest is added to the cost of qualified assets and amortized over the estimated useful lives of the assets. We record capital-related government grants earned as a reduction to property, plant and equipment.

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