Property and Equipment

12 Months Ended

Jul. 31, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

4. Property and Equipment

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

	Life in	July 31,
(Dollars in millions)	Years	2018			2017
Equipment	3-5	$	479		$	579
Computer software	2-6	812			749
Furniture and fixtures	5	88			82
Leasehold improvements	3-16	325			310
Land	NA	79			81
Buildings	5-30	363			547
Capital in progress	NA	48			71
		2,194			2,419
Less accumulated depreciation and amortization		(1,382		)	(1,389		)
Total property and equipment, net		$	812		$	1,030

__________________________

NA = Not Applicable

The decrease in the total net property and equipment balance as of July 31, 2018 is primarily due to the sale of our data center in Quincy, Washington during fiscal 2018.

Capital in progress at July 31, 2018 and 2017 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 $29 million at July 31, 2018 and $30 million at July 31, 2017.

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 $86 million for the twelve months ended July 31, 2018; $128 million for the twelve months ended July 31, 2017; and $103 million for the twelve months ended July 31, 2016. These amounts included capitalized labor costs of $45 million, $99 million and $80 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.