Property and Equipment

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

NOTE 7. Property and Equipment, net

Property and equipment, net consists of the following:

	June 30			December 31
	2016			2015
	(Dollars in Millions)
Land	$	17		$	15
Buildings and improvements	66			64
Machinery, equipment and other	407			353
Construction in progress	37			75
	527			507
Accumulated depreciation	(201		)	(170		)
	326			337
Product tooling, net of amortization	16			14
	$	342		$	351

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, excluding discontinued operations, are summarized as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2016		2015		2016		2015
	(Dollars in Millions)
Depreciation	$	17	$	17	$	33	$	32
Amortization	—		1		1		2
	$	17	$	18	$	34	$	34