The following table summarizes property and equipment, net, as of December 31, 2022 and 2021:


	December 31,
	2022		2021

	(in millions)
Land and site improvements	$	1,331	$	303
Buildings and improvements	1,267		643
Transportation fleet	673		347
Software	245		169
Furniture, fixtures, and equipment	158		97
Total property and equipment excluding construction in progress	3,674		1,559
Less: accumulated depreciation and amortization on property and equipment	(564)		(294)
Property and equipment excluding construction in progress, net	3,110		1,265
Construction in progress	134		295
Property and equipment, net	$	3,244	$	1,560

Depreciation and amortization expense on property and equipment was approximately $346 million, $153 million, and $92 million for the years ended December 31, 2022, 2021, and 2020, respectively, of which $183 million, $103 million, and $72 million was recorded to selling, general, and administrative expense, respectively, $49 million, $26 million, and $10 million

was capitalized to vehicle inventory, respectively, and $114 million, $24 million, and $10 million was recorded to cost of sales, respectively, including $52 million, $24 million, and $10 previously capitalized to vehicle inventory.

The Company capitalized internal use software costs totaling approximately $85 million, $59 million, and $49 million during the years ended December 31, 2022, 2021, and 2020, respectively, which is included in software and construction in progress in the table above. The Company capitalized approximately $68 million, $45 million, and $36 million during the years ended December 31, 2022, 2021, and 2020, respectively, of payroll and payroll-related costs for employees who are directly associated with and who devote time to the development of software products for internal use.

The Company capitalizes interest in connection with various construction projects to build, upgrade, or remodel certain of its facilities. During the years ended December 31, 2022, 2021, and 2020, the Company incurred total interest costs, net of interest income, of approximately $503 million, $185 million, and $139 million, respectively, of which approximately $17 million, $9 million, and $8 million, respectively, were capitalized.