PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

The following table presents the composition of our property and equipment balances at year-end 2022 and 2021:

($ in millions)	At Year-End 2022		At Year-End 2021
Land	$	688	$	686
Buildings and leasehold improvements	1,086		985
Furniture and equipment	649		545
Construction in progress	36		137
	2,459		2,353
Accumulated depreciation	(874)		(850)
	$	1,585	$	1,503

We record property and equipment at cost, including interest and real estate taxes we incur during development and construction. We capitalize the cost of improvements that extend the useful life of property and equipment when we incur them. These capitalized costs may include structural costs, equipment, fixtures, floor, and wall coverings. We expense all repair and maintenance costs when we incur them. We compute depreciation using the straight-line method over the estimated useful lives of the assets (generally three to 40 years), and we amortize leasehold improvements over the shorter of the asset life or lease term. Our gross depreciation expense totaled $114 million in 2022, $138 million in 2021, and $322 million in 2020 (of which $35 million in 2022, $49 million in 2021, and $109 million in 2020 was included in the “Reimbursed expenses” caption of our Income Statements). Fixed assets attributed to operations located outside the U.S. were $592 million at year-end 2022 and $623 million at year-end 2021. Our gross depreciation expense included impairment charges for property and equipment, including leasehold improvements, and right-of-use assets on several U.S. & Canada leased hotels in 2020, which we discussed in Note 8.