Capital Expenditures, sometimes referred to as CAPEX, are the long-term investments a company makes in any number of facilities or equipment with expected useful life of more than one year. These types of expenditures can include anything from purchasing new manufacturing equipment or building a new factory to buying land or vehicles for business use. On financial statements, capital expenditures are reported under either general expenses or investment gains. As such, these investments in assets tend to be tracked very closely by investors and analysts as they represent potential sources of future income generation or cost savings.