Capital expenditures are the amount of money that a company spends on buying or upgrading physical assets, such as buildings, equipment, or machinery. They may also include non-physical assets, such as patents or trademarks, if they are not reported separately. Capital expenditures are recorded as a negative value because they reduce the company’s cash flow. Capital expenditures are different from operating expenses, which are the ongoing costs of running the business, such as salaries, rent, or utilities. Capital expenditures are usually made to increase the company’s long-term productivity or efficiency.