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Property, Plant and Equipment | 6 Months Ended
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Jun. 30, 2024
Property, Plant and Equipment [Abstract] |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment The historical costs of our property, plant and equipment and related balances were as follows at the dates indicated:
|  | Estimated Useful Life in Years |  |  | June 30, 2024 |  |  | December 31, 2023 |
Plants, pipelines and facilities (1)(5) |  |  | 3-45 |  |  | $ | 59,445 |  |  | $ | 57,983 |
Underground and other storage facilities (2)(6) |  |  | 5-40 |  |  |  | 4,559 |  |  |  | 4,401 |
Transportation equipment (3) |  |  | 3-10 |  |  |  | 258 |  |  |  | 242 |
Marine vessels (4) |  |  | 15-30 |  |  |  | 940 |  |  |  | 935 |
Land |  |  |  |  |  |  | 412 |  |  |  | 411 |
Construction in progress |  |  |  |  |  |  | 3,018 |  |  |  | 2,245 |
Subtotal |  |  |  |  |  |  | 68,632 |  |  |  | 66,217 |
Less accumulated depreciation |  |  |  |  |  |  | 21,410 |  |  |  | 20,462 |
Subtotal property, plant and equipment, net |  |  |  |  |  |  | 47,222 |  |  |  | 45,755 |
Capitalized major maintenance costs for reaction-based plants, net of accumulated amortization (7) |  |  |  |  |  |  | 214 |  |  |  | 49 |
Property, plant and equipment, net |  |  |  |  |  | $ | 47,436 |  |  | $ | 45,804 |
(1) | Plants, pipelines and facilities include distillation-based and reaction-based plants; NGL, natural gas, crude oil and petrochemical and refined products pipelines; terminal loading and unloading facilities; buildings; office furniture and equipment; laboratory and shop equipment and related assets.
(2) | Underground and other storage facilities include underground product storage caverns; above ground storage tanks; water wells and related assets.
(3) | Transportation equipment includes tractor-trailer tank trucks and other vehicles and similar assets used in our operations.
(4) | Marine vessels include tow boats, barges and related equipment used in our marine transportation business.
(5) | In general, the estimated useful lives of major assets within this category are: distillation-based and reaction-based plants, 20-35 years; pipelines and related equipment, 5-45 years; terminal facilities, 10-35 years; buildings, 20-40 years; office furniture and equipment, 3-20 years; and laboratory and shop equipment, 5-35 years.
(6) | In general, the estimated useful lives of assets within this category are: underground storage facilities, 5-35 years; storage tanks, 10-40 years; and water wells, 5-35 years.
(7) | For reaction-based plants, we use the deferral method when accounting for major maintenance activities. Under the deferral method, major maintenance costs are capitalized and amortized over the period until the next major overhaul project. On a weighted-average basis, the expected remaining amortization period for these costs is 3.7 years.
Property, plant and equipment at June 30, 2024 and December 31, 2023 includes $134 million and $109 million, respectively, of asset retirement costs capitalized as an increase in the associated long-lived asset. The following table presents information regarding our asset retirement obligations, or AROs, since December 31, 2023:
ARO liability balance, December 31, 2023 |  | $ | 225 |
Liabilities incurred (1) |  |  | – |
Revisions in estimated cash flows (2) |  |  | 28 |
Liabilities settled (3) |  |  | (1 | )
Accretion expense (4) |  |  | 5 |
ARO liability balance, June 30, 2024 |  | $ | 257 |
(1) | Represents the initial recognition of estimated ARO liabilities during the period.
(2) | Represents subsequent adjustments to estimated ARO liabilities during the period.
(3) | Represents cash payments to settle ARO liabilities during the period.
(4) | Represents the net change in ARO liability balance attributable to the passage of time and other adjustments, including true-up amounts associated with revised closure estimates.
Of the $257 million total ARO liability recorded at June 30, 2024, $6 million was reflected as a current liability and $251 million as a long-term liability. The following table summarizes our depreciation expense and capitalized interest amounts for the periods indicated:
|  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Depreciation expense (1) |  | $ | 491 |  |  | $ | 453 |  |  | $ | 976 |  |  | $ | 903 |
Capitalized interest (2) |  |  | 26 |  |  |  | 37 |  |  |  | 51 |  |  |  | 69 |
(1) | Depreciation expense is a component of “Costs and expenses” as presented on our Unaudited Condensed Statements of Consolidated Operations.
(2) | We capitalize interest costs incurred on funds used to construct property, plant and equipment while the asset is in its construction phase. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life as a component of depreciation expense. When capitalized interest is recorded, it reduces interest expense from what it would be otherwise.

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