At the end of fiscal years 2025 and 2024, property, plant and equipment at cost and accumulated depreciation were:


(Dollars in Millions)	2025	2024
Land and land improvements	$701	718
Buildings and building equipment	13,429	12,317
Machinery and equipment	32,873	29,444
Construction in progress	7,361	6,289
Total property, plant and equipment, gross	$54,364	48,768
Less accumulated depreciation	31,195	28,250
Total property, plant and equipment, net	$23,169	20,518

The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense capitalized in fiscal years 2025, 2024 and 2023 was $114 million, $79 million and $70 million, respectively.

Depreciation expense, including the amortization of capitalized interest in fiscal years 2025, 2024 and 2023 was $2.9 billion, $2.8 billion and $2.6 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.