Land, Buildings, Equipment and Software, Net

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Land, Buildings, Equipment and Software, Net

Land, buildings and equipment, net was as follows:


	Estimated Useful Lives	December 31,
(in millions except as noted)	(Years)	2022		2021
Land		$	1	$	1
Building and building equipment	25 to 50	7		7
Leasehold improvements	Varies	236		250
IT, other equipment and office furniture	3 to 15	896		883
Other	4 to 20	3		3
Construction in progress		39		49
Subtotal		1,182		1,193
Accumulated depreciation		(916)		(912)
Land, Buildings and Equipment, Net		$	266	$	281

Depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $111 million, $116 million and $125 million, respectively.

Internal Use and Product Software

Internal use and Product software are included in Other long-term assets on the Company's Consolidated Balance Sheets. Additions to Internal use and Product software as well as year-end balances for these assets were as follows:


(in millions)	Year Ended December 31,
Additions to:	2022		2021		2020
Internal use software	$	61	$	65	$	63
Product software	39		45		36


	December 31,
(in millions)	2022		2021
Internal use software, at cost	$	621	$	563
Accumulated amortization	(432)		(382)
Internal use software, net	$	189	$	181

Product software, at cost	$	207	$	171
Accumulated amortization	(97)		(78)
Product software, net	$	110	$	93

Useful lives of our Internal use and Product software generally vary from one to seven years. Amortization expense for Internal use and Product software for the years ended December 31, 2022, 2021 and 2020 was $71 million, $62 million and $54 million, respectively.

Cloud Computing Arrangements

Cloud computing implementation costs are included in Other current assets and Other long-term assets on the Company's Consolidated Balance Sheets. Additions to Cloud computing implementation costs as well as year-end balances for these assets were as follows:


(in millions)	Year Ended December 31,
Additions to:	2022		2021		2020
Cloud computing implementation costs	$	1	$	6	$	3


(in millions)	December 31,
Capitalized Costs, Net	2022		2021
Cloud computing implementation costs, at cost	$	54	$	53
Impairment charges	—		(28)
Accumulated impairment charges	(28)		—
Accumulated amortization	(17)		(11)
Cloud computing implementation costs, net(1)	$	9	$	14

__________

(1)Refer to Note 10 – Supplementary Financial Information for additional information on the current and long-term portions of this asset.

Useful lives of Cloud computing implementation costs are three to five years. Amortization expense for Cloud computing implementation costs for the years ended December 31, 2022, 2021 and 2020 were $6 million, $2 million and $4 million, respectively. As a result of the Company’s decision in the fourth quarter of 2021 to abandon an internal project, the Company wrote-off $28 million of its previously capitalized implementation costs. Additionally, in connection with the abandonment of this project, the Company accrued $4 million of charges related to remaining hosting fees that would have continued to be incurred without any economic benefit. The write-off and remaining hosting fee charges are included in Selling, general and administrative on the Consolidated Statements of Income (Loss).