JOHNSON & JOHNSON | 2013 | FY | 3


Property, Plant and Equipment
At the end of 2013 and 2012, property, plant and equipment at cost and accumulated depreciation were:
(Dollars in Millions)
 
2013
 
2012
Land and land improvements
 
$
885

 
793

Buildings and building equipment
 
10,423

 
10,046

Machinery and equipment
 
22,527

 
21,075

Construction in progress
 
3,298

 
2,740

Total property, plant and equipment, gross
 
$
37,133

 
34,654

Less accumulated depreciation
 
20,423

 
18,557

Total property, plant and equipment, net
 
$
16,710

 
16,097


The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense capitalized in 2013, 2012 and 2011 was $105 million, $115 million and $84 million, respectively.
Depreciation expense, including the amortization of capitalized interest in 2013, 2012 and 2011, was $2.7 billion, $2.5 billion and $2.3 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.

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