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Impairments and Other Charges | 9 Months Ended
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Sep. 30, 2021
Restructuring and Related Activities [Abstract] |
Impairments and Other Charges | Impairments and Other Charges The following table presents various pre-tax charges we recorded during the three and nine months ended September 30, 2021 and 2020, which are reflected within "Impairments and other charges" on our condensed consolidated statements of operations.
| Three Months Ended September 30 | Nine Months Ended September 30
Millions of dollars | 2021 | 2020 | 2021 | 2020
Catch-up depreciation | $ | 36 |  | $ | — |  | $ | 36 |  | $ | — |
Severance costs | 15 |  | 83 |  | 15 |  | 356 |
Long-lived asset impairments | — |  | 31 |  | — |  | 2,299 |
Inventory costs and write-downs | — |  | 11 |  | — |  | 505 |
Gain on real estate transaction | (74) |  | — |  | (74) |  | — |
Other | 35 |  | 8 |  | 35 |  | 193 |
Total impairments and other charges | $ | 12 |  | $ | 133 |  | $ | 12 |  | $ | 3,353 |
Of the $12 million net charges recorded during the three months ended September 30, 2021, a $42 million charge was attributable to our Completion and Production segment, a $9 million charge was attributable to our Drilling and Evaluation segment, and a $39 million net gain was attributable to Corporate and other. In the third quarter of 2021, we decided to discontinue the proposed sale of our Pipeline and Process Services business and as a result recorded a $36 million charge for accumulated unrecognized depreciation and amortization expense during the period the associated assets were classified as held for sale. We have reclassified this business to assets held and used in the accompanying condensed consolidated balance sheet as of September 30, 2021. Beginning October 1, 2021, all depreciation and amortization expense associated with this business will be included in operating costs and expenses on our condensed consolidated statements of operations. During the third quarter of 2021, we finalized a previously communicated structured transaction relating to most of our owned U.S. real estate. As a result of the transaction, we derecognized $358 million of assets previously held for sale included in Other current assets and recognized an investment in an unconsolidated subsidiary of $349 million included in Other Assets, which resulted in a gain of $74 million. We have elected to account for our investment under the fair value option using an income approach. We believe the election of the fair value option aligns the accounting treatment with our interest in the real estate held by the unconsolidated subsidiary. As part of the transaction, we completed the sale-leaseback of the same U.S. real estate which resulted in an increase of our operating right-of-use assets and operating lease liabilities of $276 million and we received gross cash proceeds of $87 million. Pursuant to a master lease agreement, the properties are subject to initial lease terms of either twelve or fifteen years and we have the option to extend the term on each property for two additional terms of five years each thereafter and the rent payments are subject to an annual rent escalator of 1.35%.

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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