PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

The following table shows the composition of our property and equipment balances at year-end 2013 and 2012:



($ in millions)	At Year-End 2013			At Year-End 2012
Land	$	535		$	590
Buildings and leasehold improvements	786			703
Furniture and equipment	789			854
Construction in progress	338			383
	2,448			2,530
Accumulated depreciation	(905		)	(991		)
	$	1,543		$	1,539

The following table shows the composition of these property and equipment balances that we recorded as capital leases:



($ in millions)	At Year-End 2013			At Year-End 2012
Land	$	8		$	30
Buildings and leasehold improvements	68			143
Furniture and equipment	37			38
Construction in progress	1			4
	114			215
Accumulated depreciation	(83		)	(82		)
	$	31		$	133

We record property and equipment at cost, including interest and real estate taxes we incur during development and construction. Interest we capitalized as a cost of property and equipment totaled $31 million in 2013, $27 million in 2012, and $12 million in 2011. We capitalize the cost of improvements that extend the useful life of property and equipment when we incur them. These capitalized costs may include structural costs, equipment, fixtures, floor, and wall coverings. We expense all repair and maintenance costs when we incur them. We compute depreciation using the straight-line method over the estimated useful lives of the assets (three to 40 years), and we amortize leasehold improvements over the shorter of the asset life or lease term. Our depreciation expense totaled $107 million in 2013, $93 million in 2012, and $130 million in 2011 (including reimbursed costs of $48 million in 2013, $45 million in 2012, and $43 million in 2011). We included amortization of assets recorded under capital leases in depreciation expense.

See Footnote No. 15, "Spin-off" for additional information on the $68 million property and equipment impairment charge we recorded in 2011 as part of the Timeshare strategy-impairment charges.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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