Property, Equipment, and Capitalized Software, Net

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Equipment, and Capitalized Software, Net

Property and equipment are stated at historical cost. Replacements and major improvements are capitalized, and repairs and maintenance are charged to expense as incurred. Furniture and equipment are generally depreciated using the straight-line method over estimated useful lives ranging from three to seven years. Software developed for internal use is capitalized. Software is generally amortized over its estimated useful life of three years. Leasehold improvements are amortized over the term of the lease, or over their useful lives from five to 10 years, whichever is shorter. Buildings are depreciated over their estimated useful lives of 31.5 to 40 years.

A summary of property, equipment, and capitalized software is as follows:



	December 31,
	2019			2018
	(In millions)
Capitalized software	$	421		$	373
Furniture and equipment	213			231
Building and improvements	49			154
Land	4			16
Total cost	687			774
Less: accumulated amortization - capitalized software	(351		)	(320		)
Less: accumulated depreciation and amortization - furniture, equipment, building, and improvements	(179		)	(213		)
Total accumulated depreciation and amortization	(530		)	(533		)
ROU assets - finance leases	228			—
Property, equipment, and capitalized software, net	$	385		$	241

The following table presents all depreciation and amortization recognized in our consolidated statements of operations:



	Year Ended December 31,
	2019		2018		2017
	(In millions)
Recorded in depreciation and amortization:
Amortization of capitalized software	$	33	$	42	$	64
Depreciation and amortization of furniture, equipment, building, and improvements	21		36		42
Amortization of intangible assets	18		21		31
Amortization of finance leases	17		—		—
Subtotal	89		99		137
Recorded in cost of service revenue:
Amortization of capitalized software and deferred contract costs	—		28		41
Total depreciation and amortization recognized	$	89	$	127	$	178