Property, Net Of Accumulated Depreciation

6 Months Ended

Jun. 30, 2011

Property, Net Of Accumulated Depreciation

Property, Net Of Accumulated Depreciation

10.      Property, Net of Accumulated Depreciation

Property, net follows (in millions):

	June 30, 2011		December 31, 2010
Land	$	108	$	105
Buildings		3,729		3,692
Equipment		11,372		10,744
Construction in progress		1,370		822
		16,579		15,363
Accumulated depreciation		(6,824)		(6,420)
Total	$	9,755	$	8,943

In the three months ended June 30, 2011 and 2010, interest costs capitalized as part of property, net, were $10 million and $3 million, respectively.  In the six months ended June 30, 2011 and 2010, interest costs capitalized as part of property, net, were $17 million and $8 million, respectively.

Manufacturing equipment includes certain components of production equipment that are constructed of precious metals.  At June 30, 2011 and December 31, 2010, the recorded value of precious metals totaled $2.2 billion and $2.0 billion, respectively.  Depletion expense for precious metals in the three months ended June 30, 2011 and 2010 totaled $6 million and $3 million, respectively.  Depletion expense for precious metals in the six months ended June 30, 2011 and 2010 totaled $10 million and $6 million, respectively.