Net property is reported at cost, net of accumulated depreciation, which includes impairments. We capitalize new assets when we expect to use the asset for more than one year. Routine maintenance and repair costs are expensed when incurred.

Property and equipment are depreciated primarily using the straight-line method over the estimated useful life of the asset. Useful lives range from 3 years to 40 years. The estimated useful lives generally are 14.5 years for machinery and equipment, 8 years for software, 30 years for land improvements, and 40 years for buildings. Tooling generally is amortized over the expected life of a product program using a straight-line method.

Net property at December 31 was as follows (in millions):


	2024		2025
Land	$	360	$	408
Buildings and land improvements	13,912		15,305
Machinery, equipment, and other	40,765		41,056
Software	5,694		6,017
Construction in progress	6,240		4,094
Total land, plant and equipment, and other	66,971		66,880
Accumulated depreciation	(33,525)		(36,305)
Net land, plant and equipment, and other	33,446		30,575
Tooling, net of amortization	8,482		6,713
Total	$	41,928	$	37,288

Property-related expenses, excluding net investment in operating leases, for the years ended December 31 were as follows (in millions):


	2023		2024		2025
Depreciation and other amortization (a)	$	3,041	$	3,067	$	10,254
Tooling amortization (a)	2,340		2,018		3,198
Total	$	5,381	$	5,085	$	13,452

Maintenance and rearrangement	$	1,909	$	1,919	$	2,137

(a)Included in 2025 is our impairment of long-lived assets, which is reported as part of Cost of sales.

The challenges facing the electric vehicle (“EV”) market that have led to lower-than-anticipated adoption rates have, in turn, led us to conclude, in the fourth quarter of 2025, that a path to long-term profitability for our EV business was not possible without taking strategic actions. Accordingly, in December 2025, we made the decision to rationalize our EV manufacturing capacity and product roadmap by cancelling three previously planned EVs and ending production of the current generation F-150 Lightning EV.

As a result of the challenges facing the EV market and the decisions we made in response to those challenges, in the fourth quarter of 2025, we tested our Model e segment long-lived assets for impairment and recorded a pre-tax charge of $8.1 billion in Cost of sales, representing the amount by which the carrying value of these assets exceeded the estimated fair value. We primarily used the market and cost approaches to estimate fair value for our long-lived assets.

In addition to the charge described above, in the fourth quarter of 2025, as part of Cost of sales, we recognized asset write-downs of $1.1 billion for assets related to the EV program cancellations referenced above; recognized $1.2 billion of other charges, primarily related to contractual commitments related to those programs; and fully impaired Model e segment goodwill of $0.2 billion (see Note 2).