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PROPERTIES AND ACCUMULATED DEPRECIATION
12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
PROPERTIES AND ACCUMULATED DEPRECIATION
PROPERTIES AND ACCUMULATED DEPRECIATION
 
December 31,
(Dollars in millions)
2016
 
2015
Properties
 
 
 
Land
$
157

 
$
163

Buildings and building equipment
1,256

 
1,148

Machinery and equipment
9,646

 
9,333

Construction in progress
640

 
590

Properties and equipment at cost
$
11,699

 
$
11,234

Less:  Accumulated depreciation
6,423

 
6,104

Net properties
$
5,276

 
$
5,130



Depreciation expense was $412 million, $402 million, and $355 million for 2016, 2015, and 2014, respectively.

Cumulative construction-period interest of $169 million and $163 million, reduced by accumulated depreciation of $111 million and $107 million, is included in net properties at December 31, 2016 and 2015, respectively.

The Company capitalized $7 million of interest in each year 2016, 2015, and 2014.