PROPERTY AND DEPRECIATION

12 Months Ended

Oct. 31, 2013

PROPERTY AND DEPRECIATION

PROPERTY AND DEPRECIATION

16. PROPERTY AND DEPRECIATION

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

	Useful Lives* (Years)	2013		2012
Equipment Operations
Land		$	123	$	137
Buildings and building equipment	23	2,875		2,584
Machinery and equipment	11	4,931		4,393
Dies, patterns, tools, etc	8	1,492		1,330
All other	6	866		819
Construction in progress		728		938
Total at cost		11,015		10,201
Less accumulated depreciation		5,606		5,250
Total		5,409		4,951
Financial Services
Land		4		4
Buildings and building equipment	27	71		70
All other	6	36		36
Total at cost		111		110
Less accumulated depreciation		53		49
Total		58		61
Property and equipment-net		$	5,467	$	5,012

*   Weighted-averages

Total property and equipment additions in 2013, 2012 and 2011 were $1,158 million, $1,376 million and $1,059 million and depreciation was $637 million, $555 million and $516 million, respectively. Capitalized interest was $13 million, $7 million and $8 million in the same periods, respectively. The cost of leased property and equipment under capital leases of $58 million and $47 million and accumulated depreciation of $29 million and $25 million at October 31, 2013 and 2012, 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, 2013 and 2012 were $778 million and $684 million, less accumulated amortization of $584 million and $493 million, respectively. Amortization of these software costs was $93 million in 2013, $89 million in 2012 and $73 million in 2011. The cost of leased software assets under capital leases amounting to $46 million and $42 million at October 31, 2013 and 2012, 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.