PROPERTY AND DEPRECIATION

12 Months Ended

Oct. 31, 2016

16. PROPERTY AND DEPRECIATION

A summary of property and equipment at October 31 in millions of dollars follows:


	Useful Lives*
	(Years)	2016		2015
Equipment Operations
Land		$	119	$	114
Buildings and building equipment	23		3,230		3,016
Machinery and equipment	11		5,180		5,055
Dies, patterns, tools, etc.	8		1,604		1,567
All other	5		893		875
Construction in progress			370		345
Total at cost			11,396		10,972
Less accumulated depreciation			6,277		5,846
Total			5,119		5,126
Financial Services
Land			4		4
Buildings and building equipment	26		73		73
All other	6		36		36
Total at cost			113		113
Less accumulated depreciation			61		58
Total			52		55
Property and equipment – net		$	5,171	$	5,181

* Weighted-averages

Total property and equipment additions in 2016, 2015 and 2014 were $674 million, $666 million and $1,016 million and depreciation was $701 million, $692 million and $696 million, respectively. Capitalized interest was $3 million, $6 million and $6 million in the same periods, respectively. The cost of leased property and equipment under capital leases of $33 million and $27 million and accumulated depreciation of $16 million and $14 million at October 31, 2016 and 2015, respectively, is included in property and equipment.

Capitalized software has an estimated useful life of three years. The amounts of total capitalized software costs, including purchased and internally developed software, classified as “Other Assets” at October 31, 2016 and 2015 were $1,035 million and $934 million, less accumulated amortization of $770 million and $681 million, respectively. Capitalized interest on software was $3 million and $2 million at October 31, 2016 and 2015, respectively. Amortization of these software costs in 2016, 2015, and 2014 was $102 million, $103 million and $106 million, respectively. The cost of leased software assets under capital leases amounting to $90 million and $86 million at October 31, 2016 and 2015, respectively, is included in other assets.

The cost of compliance with foreseeable environmental requirements has been accrued and did not have a material effect on the company’s consolidated financial statements.