WAL MART STORES INC | 2013 | FY | 3


Property and Equipment
Property and equipment are stated at cost. Gains or losses on disposition are recognized as earned or incurred. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are charged to expense as incurred. The following table summarizes the Company's property and equipment balances and includes the estimated useful lives that are generally used to depreciate the assets on a straight-line basis:
 
 
 
 
Fiscal Years Ended January 31,
(Amounts in millions)
 
Estimated Useful Lives
 
2013
 
2012
Land
 
N/A
 
$
25,612

 
$
23,499

Buildings and improvements
 
3-40 years
 
90,686

 
84,275

Fixtures and equipment
 
3-25 years
 
40,903

 
39,234

Transportation equipment
 
3-15 years
 
2,796

  
2,682

Construction in progress
 
N/A
 
5,828

  
5,312

Property and equipment
 
 
 
$
165,825

 
$
155,002

Accumulated depreciation
 
 
 
(51,896
)
 
(45,399
)
Property and equipment, net
 
 
 
$
113,929

 
$
109,603


Leasehold improvements are depreciated over the shorter of the estimated useful life of the asset or the remaining expected lease term. Depreciation expense for property and equipment, including amortization of property under capital leases, for fiscal 2013, 2012 and 2011 was $8.4 billion, $8.1 billion and $7.6 billion, respectively. Interest costs capitalized on construction projects were $74 million, $60 million and $63 million in fiscal 2013, 2012 and 2011, respectively.

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