Property and Equipment

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

NOTE 7. Property and Equipment, net

Property and equipment, net consists of the following:

	March 31			December 31
	2016			2015
	(Dollars in Millions)
Land	$	17		$	15
Buildings and improvements	71			64
Machinery, equipment and other	379			353
Construction in progress	52			75
	519			507
Accumulated depreciation	(186		)	(170		)
	333			337
Product tooling, net of amortization	16			14
	$	349		$	351

Property and equipment is depreciated principally using the straight-line method of depreciation over the related asset's estimated useful life. Generally, buildings and improvements are depreciated over a 40-year estimated useful life, leasehold improvements are depreciated on a straight-line basis over the initial lease term period, and machinery, equipment and other are depreciated over estimated useful lives ranging from 3 to 15 years. Product tooling is amortized using the straight-line method over the estimated life of the tool, generally not exceeding six years. Depreciation and amortization expenses for property and equipment, excluding discontinued operations, are summarized as follows:

	Three Months Ended March 31
	2016		2015
	(Dollars in Millions)
Depreciation	$	16	$	16
Amortization	1		1
	$	17	$	17