Property, Plant and Equipment
At the end of 2013 and 2012, property, plant and equipment at cost and accumulated depreciation were:
|
| | | | | | | |
(Dollars in Millions) | | 2013 | | 2012 |
Land and land improvements | | $ | 885 |
| | 793 |
|
Buildings and building equipment | | 10,423 |
| | 10,046 |
|
Machinery and equipment | | 22,527 |
| | 21,075 |
|
Construction in progress | | 3,298 |
| | 2,740 |
|
Total property, plant and equipment, gross | | $ | 37,133 |
| | 34,654 |
|
Less accumulated depreciation | | 20,423 |
| | 18,557 |
|
Total property, plant and equipment, net | | $ | 16,710 |
| | 16,097 |
|
The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense capitalized in 2013, 2012 and 2011 was $105 million, $115 million and $84 million, respectively.
Depreciation expense, including the amortization of capitalized interest in 2013, 2012 and 2011, was $2.7 billion, $2.5 billion and $2.3 billion, respectively.
Upon retirement or other disposal of property, plant and equipment, the costs and related amounts of accumulated depreciation or amortization are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds are recorded in earnings.
