Net Property and Lease Commitments

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NET PROPERTY AND LEASE COMMITMENTS

Net Property

Net property is reported at cost, net of accumulated depreciation and impairments. We capitalize new assets when we expect to use the asset for more than one year. Routine maintenance and repair costs are expensed when incurred.

Property and equipment are depreciated primarily using the straight-line method over the estimated useful life of the asset. Useful lives range from 3 years to 36 years. The estimated useful lives generally are 14.5 years for machinery and equipment, 8 years for software, 30 years for land improvements, and 36 years for buildings. Tooling generally is amortized over the expected life of a product program using a straight-line method.

Net property at December 31 was as follows (in millions):



	2015			2016
Land	$	344		$	391
Buildings and land improvements	9,983			10,308
Machinery, equipment, and other	33,191			34,149
Software	2,598			2,803
Construction in progress	1,804			2,170
Total land, plant and equipment, and other	47,920			49,821
Accumulated depreciation	(27,803		)	(27,804		)
Net land, plant and equipment, and other	20,117			22,017
Tooling, net of amortization	10,046			10,055
Total	$	30,163		$	32,072

Property-related expenses excluding net investment in operating leases for the years ended December 31 were as follows (in millions):



	2014		2015		2016
Depreciation and other amortization	$	2,127	$	2,049	$	2,130
Tooling amortization	2,160		2,304		2,563
Total	$	4,287	$	4,353	$	4,693

Maintenance and rearrangement	$	1,543	$	1,656	$	1,801

Conditional Asset Retirement Obligations

Conditional asset retirement obligations relate to legal obligations associated with the retirement, abandonment, or disposal of tangible long-lived assets. Estimates of the fair value liabilities for our conditional asset retirement obligations that are recorded in Other liabilities and deferred revenue in the non-current liabilities section of our consolidated balance sheet at December 31 were as follows (in millions):



	2015			2016
Beginning balance	$	228		$	216
Liabilities settled	(6		)	(2		)
Revisions to estimates	(6		)	(28		)
Ending balance	$	216		$	186

NOTE 11. NET PROPERTY AND LEASE COMMITMENTS (Continued)

Lease Commitments

We lease land, buildings, and equipment under agreements that expire over various contractual periods. Minimum non-cancellable operating lease commitments at December 31, 2016 were as follows (in millions):



	Operating Lease Commitments
2017	$	342
2018	275
2019	202
2020	137
2021	88
Thereafter	340
Total	$	1,384

Operating lease expense for the years ended December 31 was as follows (in millions):



	Operating Lease Expense
2014	$	524
2015	460
2016	474