11-54 CHAPTER 11 Long-Lived Assets Information taken from both firms' fiscal 2014 annual reports to shareholders follows. The fiscal 2014 years end in January 2015. Target Corporation Property and Equipment January 31, 2015 February 1, 2014 (in millions) Land $6.127 26.614 $6.143 25,984 Fixtures and equipment Buildings and improvements 5,346 5.199 Construction in progress Computer hardware and software 2,553 2.395 424 757 Accumulated depreciation (15,106) $25,958 (14,066) Property and equipment-net $26.412 Estim Selecte lives or lease terms if shorter. We amortize leasehold improvements purchased after the begin Property and equipment is depreciated using the straight-line method over estimated usef ning of the initial lease term over the shorter of the assets' useful lives or a term that includes improvements are acquired.... For income tax purposes, accelerated depreciation methods are the original lease term, plus any renewals that are reasonably assured at the date the leasehold generally used. Repair and maintenance costs are expensed as incurred. Facility pre-opening costs, including supplies and payroll, are expensed as incurred. Estimated useful lives by major asset category are as follows: Asset Buildings and improvements Life (in Years) 8-39 2-15 Computer hardware and software 2-7 Fixtures and equipment Re As 1 2 Selected Income Statement Information Years Ended January 31, February 1, ($ in millions) 2015 2014 Depreciation and amortization $2,129 $1,996 Earnings before income taxes 3,653 4,121 Net earnings from continuing operations 2,449 2,214 Source: Target Corp. 2014 annual report. purchase products seamlessly in stores, online, or through mobile devices. Most of its opera- Target Corporation operates in a single business segment that is designed to enable guests to tions are in the United States. Walmart is engaged in the operation of retail, wholesale, and other units located throughout the United States, Africa, Argentina, Brazil, Canada, Central America, Chile, China, India, Japan, Mexico, and the United Kingdom. The Company's operations are conducted in three reportable segments: Walmart U.S., Walmart International, and Sam's Club. CASES C11-1 Target Corporation and Walmart Stores, Inc.: Identifying depreciation dif- ferences and performing financial statement analysis (LO 11-8)