NOTES TO FINANCIAL STATEMENTS
NOTE 7 PROPERTY AND EQUIPMENT
| (In millions) | ||
|---|---|---|
| June 30, | 2008 | 2007 |
| Land | $ ,518 | $ )428 |
| Buildings and improvements | 4,302 | 3,170 |
| Leasehold improvements | 1,728 | 1,077 |
| Computer equipment and software | 4,475 | 3,458 |
| Furniture and equipment | 1,521 | 1,233 |
| Property and equipment, at cost | 12,544 | 9,366 |
| Accumulated depreciation | (6,302) | (5,016) |
| Property and equipment, net | $6,242 | $4,350 |
Property and equipment are stated at cost. Depreciation is computed principally on the straight-line method over the estimated useful lives of the assets. The useful lives for buildings range from five to 15 years, leasehold improvements generally range from two to ten years—representing the applicable lease terms plus reasonably assured extensions, computer equipment and software range from two to three years, and furniture and equipment range from one to five years. Land is not depreciated.
During fiscal years 2008, 2007, and 2006, depreciation expense was $1.4 billion, $1.2 billion, and $863 million, respectively. The majority of depreciation expense in all years related to computer equipment.