Property, Net Of Accumulated Depreciation

9 Months Ended

Sep. 30, 2011

Property, Net Of Accumulated Depreciation

Property, Net Of Accumulated Depreciation

10. Property, Net of Accumulated Depreciation

Property, net follows (in millions):


	September 30, 2011		December 31, 2010
Land	$	109	$	105
Buildings		3,879		3,692
Equipment		11,705		10,744
Construction in progress		1,662		822
		17,355		15,363
Accumulated depreciation		(7,089)		(6,420)
Total	$	10,266	$	8,943

In the three months ended September 30, 2011 and 2010, interest costs capitalized as part of property, net, were $11 million and $5 million, respectively. In the nine months ended September 30, 2011 and 2010, interest costs capitalized as part of property, net, were $28 million and $12 million, respectively.

Manufacturing equipment includes certain components of production equipment that are constructed of precious metals. At September 30, 2011 and December 31, 2010, the recorded value of precious metals totaled $2.3 billion and $2.0 billion, respectively. Depletion expense for precious metals in the three months ended September 30, 2011 and 2010 totaled $6 million and $6 million, respectively. Depletion expense for precious metals in the nine months ended September 30, 2011 and 2010 totaled $16 million and $12 million, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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