Property and Equipment

12 Months Ended

Jul. 31, 2011

Property, Plant and Equipment [Abstract]

Property and equipment consisted of the following at the dates indicated:



	Life in	July 31,
(Dollars in millions)	Years	2011			2010
Equipment	3-5	$	531		$	475
Computer software	3-6	478			359
Furniture and fixtures	5	61			64
Leasehold improvements	2-16	229			229
Land	NA	2			4
Buildings	5-30	187			202
Capital in progress	NA	36			59
		1,524			1,392
Less accumulated depreciation and amortization		(963		)	(882		)
Total property and equipment, net		$	561		$	510

__________________________

NA = Not Applicable

Capital in progress consists primarily of costs related to internal use software projects. As discussed in Note 1, “Description of Business and Summary of Significant Accounting Policies - Software Development Costs,” we capitalize costs related to the development of computer software for internal use. We capitalized internal use software costs totaling $99 million for the twelve months ended July 31, 2011; $56 million for the twelve months ended July 31, 2010; and $52 million for the twelve months ended July 31, 2009. These amounts included capitalized labor costs of $35 million, $28 million and $17 million. Costs related to internal use software projects are included in the capital in progress category of property and equipment until project completion, at which time they are transferred to the computer software category and amortized on a straight-line basis over their useful lives, which are generally three to five years.

- 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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