v2.4.0.6
PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 31, 2012
PROPERTY AND EQUIPMENT

Note 3—PROPERTY AND EQUIPMENT

Property and equipment, at cost, consisted of the following (in millions):

 

     December 31,  
     2012      2011  

Gross Property and Equipment (1):

      

Land and buildings

    $ 2,966       $ 1,437   

Equipment and internal-use software (2)

      6,228         4,106   

Other corporate assets

      174         137   

Construction in progress

      214         106   
  

 

 

     

 

 

  

Gross property and equipment

    $ 9,582       $ 5,786   
  

 

 

     

 

 

  

Total accumulated depreciation (1)

      2,522         1,369   
  

 

 

     

 

 

  

Total property and equipment, net

    $ 7,060       $ 4,417   
  

 

 

     

 

 

  

 

(1) Excludes the original cost and accumulated depreciation of fully-depreciated assets.
(2) Includes internal-use software of $866 million and $623 million at December 31, 2012 and 2011.

In December 2012, we acquired our corporate headquarters for $1.2 billion consisting of land and 11 buildings that were previously accounted for as financing leases. The acquired building assets will be depreciated over their estimated useful lives of 40 years. We also acquired three city blocks of land for the expansion of our corporate headquarters for approximately $210 million.

Depreciation expense on property and equipment was $1.7 billion, $1.0 billion, and $552 million, which includes amortization of property and equipment acquired under capital lease obligations of $510 million, $335 million, and $164 million for 2012, 2011, and 2010. Gross assets remaining under capital leases were $2.3 billion and $1.6 billion at December 31, 2012 and 2011. Accumulated depreciation associated with capital leases was $1.1 billion and $603 million at December 31, 2012 and 2011. Cash paid for interest on capital leases was $51 million, $44 million, and $26 million for 2012, 2011, and 2010.