Interpreting and Applying Disclosures on Property and Equipment Following are selected disclosures from the 10-K report of Facebook Inc.

Property and Equipment, Net

$ millions 2015 2014 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 596 $ 153 Buildings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,273 1,420 Leasehold equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . 447 304 Network equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,633 3,020 Computer software, office equipment and other . . . . . . 248 149 Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . 622 738 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,819 5,784 Less: Accumulated depreciation . . . . . . . . . . . . . . . . (2,132) (1,817)

Property and equipment, net . . . . . . . . . . . . . . . . . . . . . $5,687 $3,967 Depreciation expense on property and equipment was $1.22 billion, $923 million, and $857 million during 2015, 2014 and 2013, respectively.

Required

a. Compute the PPE turnover for 2015 (Sales in 2015 are $17,928 million).

b. Estimate the useful life, on average, for its depreciable PPE assets.

c. By what percentage are Facebook’s assets “used up” at year-end 2015? What implication does the assets used up computation have for forecasting cash flows?

d. Consider the ratios in parts

a, b, and

c. Interpret them in light of the company’s age and business model.

e. The list of PPE assets includes an asset labeled “Construction in progress.” What is this asset and what types of costs are included in the $622 million on the balance sheet?