Property and Equipment

6 Months Ended

Jun. 30, 2012

Note 3. Property and Equipment

Property and equipment consist of the following (in millions):


	June 30, 2012			December 31, 2011
Network equipment	$	1,479		$	1,016
Land		34			34
Buildings		449			355
Leasehold improvements		142			120
Computer software, office equipment and other		88			73
Construction in progress		542			327

Total		2,734			1,925
Less accumulated depreciation and amortization		(629	)		(450	)

Property and equipment, net	$	2,105		$	1,475

Construction in progress includes costs primarily related to the construction of data centers and equipment located in our new data centers in Oregon, North Carolina and Sweden.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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