PROPERTY AND DEPRECIATION

12 Months Ended

Oct. 31, 2014

16. PROPERTY AND DEPRECIATION

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

	Useful Lives* (Years)	2014		2013
Equipment Operations
Land		$	120	$	123
Buildings and building equipment	23	3,037		2,875
Machinery and equipment	11	5,089		4,931
Dies, patterns, tools, etc.	8	1,552		1,492
All other	5	889		866
Construction in progress		530		728
Total at cost		11,217		11,015
Less accumulated depreciation		5,694		5,606
Total		5,523		5,409
Financial Services
Land		4		4
Buildings and building equipment	27	71		71
All other	6	37		36
Total at cost		112		111
Less accumulated depreciation		57		53
Total		55		58
Property and equipment-net		$	5,578	$	5,467

* Weighted-averages

Total property and equipment additions in 2014, 2013 and 2012 were $1,016 million, $1,158 million and $1,376 million and depreciation was $696 million, $637 million and $555 million, respectively. Capitalized interest was $6 million, $13 million and $7 million in the same periods, respectively. The cost of leased property and equipment under capital leases of $36 million and $58 million and accumulated depreciation of $15 million and $29 million at October 31, 2014 and 2013, 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, 2014 and 2013 were $912 million and $778 million, less accumulated amortization of $656 million and $584 million, respectively. Amortization of these software costs was $106 million in 2014, $93 million in 2013 and $89 million in 2012. The cost of leased software assets under capital leases amounting to $77 million and $46 million at October 31, 2014 and 2013, 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.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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