Financial Information

PART II

Item 8. Financial Statements and Supplementary Data.

MARRIOTT INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

13. PROPERTY AND EQUIPMENT

The following table presents the composition of our property and equipment balances at year-end 2018 and 2017:

We record property and equipment at cost, including interest and real estate taxes we incur during development and construction. We capitalize the cost of improvements that extend the useful life of property and equipment when we incur them. These capitalized costs may include structural costs, equipment, fixtures, floor, and wall coverings. We expense all repair and maintenance costs when we incur them. We compute depreciation using the straight-line method over the estimated useful lives of the assets (generally three to 40 years), and we amortize leasehold improvements over the shorter of the asset life or lease term. Our gross depreciation expense totaled $256 million in 2018, $231 million in 2017, and $157 million in 2016 (of which $147 million in 2018, $126 million in 2017, and $76 million in 2016 was included in reimbursed costs). Fixed assets attributed to operations located outside the U.S. were $533 million in 2018 and $705 million in 2017.