Property and Equipment

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment [Abstract]

Property and Equipment

NOTE 7. Property and Equipment, net

Property and equipment, net consists of the following:

	September 30			December 31
	2015			2014
	(Dollars in Millions)
Land	$	16		$	17
Buildings and improvements	71			66
Machinery, equipment and other	359			337
Construction in progress	53			64
	499			484
Accumulated depreciation	(174		)	(136		)
	325			348
Product tooling, net of amortization	16			15
	$	341		$	363

Property and equipment is depreciated principally using the straight-line method of depreciation over the related asset's estimated useful life. Generally, buildings and improvements are depreciated over a 40-year estimated useful life, leasehold improvements are depreciated on a straight-line basis over the initial lease term period, and machinery, equipment and other are depreciated over estimated useful lives ranging from 3 to 15 years. Product tooling is amortized using the straight-line method over the estimated life of the tool, generally not exceeding six years. Depreciation and amortization expenses for property and equipment are summarized as follows:

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(Dollars in Millions)
Depreciation	$	17	$	20	$	49	$	40
Amortization	—		1		2		2
	$	17	$	21	$	51	$	42