Property and Equipment

12 Months Ended

Jul. 31, 2016

Property, Plant and Equipment [Abstract]

Property and equipment consisted of the following at the dates indicated:



	Life in	July 31,
(Dollars in millions)	Years	2016			2015
Equipment	3-5	$	533		$	447
Computer software	3-6	619			552
Furniture and fixtures	5	73			71
Leasehold improvements	2-16	296			286
Land	NA	60			7
Buildings	5-30	403			192
Capital in progress	NA	256			188
		2,240			1,743
Less accumulated depreciation and amortization		(1,209		)	(1,061		)
Total property and equipment, net		$	1,031		$	682

__________________________

NA = Not Applicable

In January 2016 we completed the purchase of certain leased facilities for $262 million in cash. Capital in progress at July 31, 2016 and July 31, 2015 consisted primarily of costs related to internal use software projects and land and buildings that we are in the process of constructing on our headquarters campus in Mountain View, California. The balance of land and buildings in the capital in progress account was $172 million at July 31, 2016 and $100 million at July 31, 2015. As discussed in Note 1, “Description of Business and Summary of Significant Accounting Policies – Internal Use Software,” we capitalize costs related to the development of computer software for internal use. We capitalized internal use software costs totaling $103 million for the twelve months ended July 31, 2016; $116 million for the twelve months ended July 31, 2015; and $80 million for the twelve months ended July 31, 2014. These amounts included capitalized labor costs of $80 million, $89 million and $46 million, respectively. Costs related to internal use software projects are included in the capital in progress category of property and equipment until project completion, at which time they are transferred to the computer software category.