The combined amount of depreciation and amortization expenses recorded by a company during a specific period. Depreciation is the method of allocating the cost of a tangible asset over its useful life, reflecting its wear and tear. Amortization is the method of allocating the cost of an intangible asset over its useful life, reflecting its consumption or expiration. Depreciation and amortization are non-cash expenses that reduce the carrying value of assets on the balance sheet and increase expenses on the income statement.