PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

10.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:


December 31, 2012	Gross Cost		Accumulated Depreciation			Net Cost
Land		93		—			93
Buildings		966		(395	)		571
Facilities & leasehold improvements		3,151		(2,649	)		502
Machinery and equipment		14,553		(12,363	)		2,190
Computer and R&D equipment		504		(451	)		53
Other tangible assets		165		(145	)		20
Construction in progress		52		—			52

Total		19,484		(16,003	)		3,481


December 31, 2011	Gross Cost		Accumulated Depreciation			Net Cost
Land		86		—			86
Buildings		955		(363	)		592
Facilities & leasehold improvements		3,086		(2,479	)		607
Machinery and equipment		14,320		(11,828	)		2,492
Computer and R&D equipment		508		(444	)		64
Other tangible assets		169		(140	)		29
Construction in progress		50		—			50

Total		19,174		(15,254	)		3,920

The line “Construction in progress” in the table above includes property, plant and equipment under construction and equipment under qualification before operating.

Facilities & leasehold improvements, Machinery and equipment and Other tangible assets include assets acquired under capital lease. The Net Cost of Assets under capital lease for the years ended December 31, 2012 and 2011 was $3 million and $7 million, respectively.

The depreciation charge in 2012, 2011 and 2010 was $930 million, $1,068 million and $1,033 million, respectively.

Capital investment funding has totaled $1 million for the year ended December 31, 2012, $11 million for the year ended December 31, 2011 and $4 million for the year ended December 31, 2010. Public funding reduced depreciation charges by $10 million, $12 million and $13 million in 2012, 2011 and 2010 respectively.

For the years ended December 31, 2012, 2011 and 2010 the Company made equipment sales for cash proceeds of $16 million, $26 million and $29 million respectively.

- 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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