Property and equipment - Property, equipment and improvements to leased premises are depreciated using the straight-line method over the estimated useful lives of the assets, or when applicable, the term of the lease, whichever is shorter. Estimated useful lives generally range from 10 to 40 years for buildings, building improvements and leasehold improvements and 3 to 10 years for fixtures, equipment and internally developed software. Repair and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. Application development stage costs for significant internally developed software projects are capitalized and depreciated.
The following are the components of property and equipment at December 31:
|
| | | | | | | |
In millions | 2013 | | 2012 |
Land | $ | 1,460 |
| | $ | 1,429 |
|
Building and improvements | 2,694 |
| | 2,614 |
|
Fixtures and equipment | 8,419 |
| | 7,928 |
|
Leasehold improvements | 3,320 |
| | 3,105 |
|
Software | 1,515 |
| | 1,230 |
|
| 17,408 |
| | 16,306 |
|
Accumulated depreciation and amortization | (8,793 | ) | | (7,674 | ) |
Property and equipment, net | $ | 8,615 |
| | $ | 8,632 |
|
The gross amount of property and equipment under capital leases was $260 million and $219 million as of December 31, 2013 and 2012, respectively. Accumulated amortization of property and equipment under capital lease was $74 million and $64 million as of December 31, 2013 and 2012, respectively. Amortization of property and equipment under capital lease is included within depreciation expense. Depreciation expense totaled $1.4 billion, $1.3 billion and $1.1 billion in 2013, 2012 and 2011, respectively.
