Property and Equipment, Net

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



(in millions)	2014		2013
Land	$	82	$	87
Buildings	518		575
Leasehold improvements	60		68
Machinery and equipment	2,232		2,289
Furniture, fixtures, and equipment	487		444
Equipment leased to others	677		663
Construction in progress	41		55
Total property and equipment, at cost	4,097		4,181
Less: Accumulated depreciation and amortization	2,535		2,440
Property and equipment, net	$	1,562	$	1,741

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)	2014		2013
Equipment leased to others	$	677	$	663
Less: Accumulated depreciation	210		191
Equipment leased to others, net	$	467	$	472

Buildings, machinery, and equipment under financing arrangements and capital lease obligations	$	70	$	93
Less: Accumulated depreciation and amortization	32		31
Assets under financing arrangements and capital lease obligations, net	$	38	$	62

For the years ended October 31, 2014, 2013, and 2012, 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)	2014		2013		2012
Depreciation expense	$	206	$	260	$	248
Depreciation of equipment leased to others	105		135		46
Amortization expense	3		—		4
Interest capitalized	—		5		9

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

Capital Expenditures

At October 31, 2014, 2013, and 2012 respectively, commitments for capital expenditures were $15 million, $11 million, and $48 million respectively. At October 31, 2014, 2013, and 2012, liabilities related to capital expenditures that are included in accounts payable were $1 million, $2 million, and $29 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, 2014, 2013, and 2012 was $62 million, $74 million, and $63 million, respectively. Rental income from subleases for the years ended October 31, 2014, 2013, and 2012 was $10 million, $7 million, and $4 million, respectively.

Future minimum lease payments at October 31, 2014, 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
2015	$	11	$	65	$	76
2016	10		51		61
2017	9		41		50
2018	9		36		45
2019	9		29		38
Thereafter	20		71		91
	68		$	293	$	361
Less: Interest portion	14
Total	$	54

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.