6. Property and Equipment, Net

The following table presents the components of Property and equipment, net in our Consolidated Balance Sheets:



	As of October 31,
(in millions)	2016		2015
Land	$	89	$	87
Buildings	562		493
Leasehold improvements	49		56
Machinery and equipment	2,013		2,097
Furniture, fixtures, and equipment	477		478
Equipment leased to others	525		613
Construction in progress	79		67
Total property and equipment, at cost	3,794		3,891
Less: Accumulated depreciation and amortization	2,553		2,546
Property and equipment, net	$	1,241	$	1,345

Certain of our property and equipment serve as collateral for borrowings. See Note 9, Debt, for description of borrowings.

Equipment leased to others and assets under financing arrangements and capital lease obligations are as follows:



	As of October 31,
(in millions)	2016		2015
Equipment leased to others	$	525	$	613
Less: Accumulated depreciation	193		220
Equipment leased to others, net	$	332	$	393

Buildings, machinery, and equipment under financing arrangements and capital lease obligations	$	61	$	70
Less: Accumulated depreciation and amortization	38		34
Assets under financing arrangements and capital lease obligations, net	$	23	$	36

For the years ended October 31, 2016, 2015, and 2014, depreciation expense, amortization expense related to assets under financing arrangements and capital lease obligations, and interest capitalized on construction projects are as follows:



	For the Years Ended October 31,
(in millions)	2016		2015		2014
Depreciation expense	$	134	$	190	$	206
Depreciation of equipment leased to others	79		76		105
Amortization expense	5		5		3
Interest capitalized	3		1		—

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

Capital Expenditures

At October 31, 2016, 2015, and 2014, commitments for capital expenditures were $24 million, $17 million, and $15 million, respectively. At October 31, 2016, 2015, and 2014, liabilities related to capital expenditures that are included in accounts payable were $1 million, $2 million, and $1 million, respectively.

Leases

We lease certain land, buildings, and equipment under non-cancelable operating leases and capital leases expiring at various dates through 2025. 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, 2016, 2015, and 2014 was $53 million, $57 million, and $62 million, respectively. Rental income from subleases for the years ended October 31, 2016, 2015, and 2014 was $12 million, $11 million, and $10 million, respectively.

Future minimum lease payments at October 31, 2016, 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
2017	$	10	$	52	$	62
2018	10		45		55
2019	9		36		45
2020	9		33		42
2021	9		29		38
Thereafter	2		21		23
	49		$	216	$	265
Less: Interest portion	7
Total	$	42

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.