Property and Equipment, Net

As of October 31, Property and equipment, net included the following:



(in millions)	2013		2012
Land^(A)	$	75	$	79
Buildings^(A)	575		520
Leasehold improvements	80		81
Machinery and equipment	2,494		2,504
Furniture, fixtures, and equipment	239		244
Equipment leased to others	663		301
Construction in progress^(A)	55		159
Total property and equipment, at cost	4,181		3,888
Less: Accumulated depreciation and amortization	2,440		2,228
Property and equipment, net	$	1,741	$	1,660

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(A)	We consolidated our executive management, certain business operations, and product development into a 1.2 million square foot, world headquarters site in Lisle, Illinois, which we completed in the first quarter of fiscal 2012, and we completed the consolidation of our testing and validation center in our Melrose Park facility in 2013.

Certain of our property and equipment serve as collateral for borrowings. See Note 10, Debt, for description of borrowings.

As of October 31, equipment leased to others and assets under financing arrangements and capital lease obligations are as follows:



(in millions)	2013		2012
Equipment leased to others	$	663	$	301
Less: Accumulated depreciation	191		94
Equipment leased to others, net	$	472	$	207

Buildings, machinery, and equipment under financing arrangements and capital lease obligations	$	92	$	156
Less: Accumulated depreciation and amortization	31		86
Assets under financing arrangements and capital lease obligations, net	$	61	$	70

For the years ended October 31, 2013, 2012, and 2011, depreciation expense, amortization expense related to assets under financing arrangements and capital lease obligations, and interest capitalized on construction projects are as follows:



(in millions)	2013		2012		2011
Depreciation expense	$	260	$	248	$	260
Depreciation of equipment leased to others	135		46		38
Amortization expense	—		4		1
Interest capitalized	5		9		18

Certain depreciation expense on buildings used for administrative purposes is recorded in Selling, general and administrative expenses.

Capital Expenditures

At October 31, 2013, 2012, and 2011 respectively, commitments for capital expenditures were $11 million, $48 million, and $44 million respectively. At October 31, 2013, 2012, and 2011, liabilities related to capital expenditures that are included in accounts payable were $2 million, $29 million, and $22 million, respectively.

Leases

We lease certain land, buildings, and equipment under non-cancelable operating leases and capital leases expiring at various dates through 2024. Operating leases generally have 1 to 20 year terms, with one or more renewal options, with terms to be negotiated at the time of renewal. Various leases include provisions for rent escalation to recognize increased operating costs or require us to pay certain maintenance and utility costs. Our rent expense for the years ended October 31, 2013, 2012, and 2011 was $74 million, $63 million, and $54 million, respectively. Rental income from subleases was $7 million for the year ended October 31, 2013 and $4 million for the years ended October 31, 2012 and 2011.

Future minimum lease payments at October 31, 2013, for those leases having an initial or remaining non-cancelable lease term in excess of one year and certain leases that are treated as finance lease obligations, are as follows:



(in millions)	Financing Arrangements and Capital Lease Obligations		Operating Leases		Total
2014	$	30	$	72	$	102
2015	9		61		70
2016	9		47		56
2017	9		39		48
2018	9		33		42
Thereafter	29		95		124
	95		$	347	$	442
Less: Interest portion	18
Total	$	77

Asset Retirement Obligations

We have a number of asset retirement obligations in connection with certain owned and leased locations, leasehold improvements, and sale and leaseback arrangements. Certain of our production facilities contain asbestos that would have to be removed if such facilities were to be demolished or undergo a major renovation. The fair value of the conditional asset retirement obligations as of the balance sheet date has been determined to be immaterial. Asset retirement obligations relating to the cost of removing improvements to leased facilities or returning leased equipment at the end of the associated agreements are not material.