The property and equipment footnote from the Deere \& Company balance sheet follows.

a. Compute the estimated useful life of Deere's depreciable assets at year-end 2012. (Hint: Exclude land and construction in progress.) How does this estimate compare with the useful lives reported in Deere's footnote disclosure?

b. Estimate the percent used up of Deere's depreciable assets at year-end 2012. How do you interpret this figure?

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Property and Depreciation A summary of property and equipment at October 31 follows: Useful Lives* (Years) Property and Equipment ($ millions) Land....... Buildings and building equipment Machinery and equipment. Dies, patterns, tools, etc... All other... Construction in progress Total at cost Less accumulated depreciation. Total ... 23 11 2186 2012 $ 137 2,584 4,393 1,330 819 938 10,201 5,250 $4,951 2011 $117 2,430 4,254 1,213 731 649 9,394 5,107 $4,287 *Weighted averages Total property and equipment additions in 2012, 2011 and 2010 were $1,376 million, $1,059 million and $802 million and depreciation was $555 million, $516 million and $540 million, respectively.