Property, Plant and Equipment-Net

3 Months Ended

Jun. 30, 2022

Property, Plant and Equipment, Net [Abstract]

Property, Plant and Equipment—Net

Property, plant and equipment—net consists of the following:


	June 30, 2022		December 31, 2021
	(in millions)
Land	$	66	$	68
Machinery and equipment(1)	12,590		12,757
Buildings and improvements(1)	912		915
Construction in progress(1)	225		148
Property, plant and equipment(2)	13,793		13,888
Less: Accumulated depreciation and amortization	7,171		6,807
Property, plant and equipment—net	$	6,622	$	7,081

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(1)As of June 30, 2022, machinery and equipment, buildings and improvements, and construction in progress include cumulative impairment charges of $297 million, $7 million and $13 million, respectively, which include impairment charges related to our U.K. operations of $135 million recorded in the second quarter of 2022 and $182 million recorded in 2021. As of December 31, 2021, machinery and equipment, buildings and improvements, and construction in progress include cumulative impairment charges of $169 million, $5 million and $8 million, respectively, which were recorded in 2021.

(2)As of June 30, 2022 and December 31, 2021, we had property, plant and equipment that was accrued but unpaid of approximately $51 million and $35 million, respectively. As of June 30, 2021 and December 31, 2020, we had property, plant and equipment that was accrued but unpaid of approximately $76 million and $43 million, respectively.

Depreciation and amortization related to property, plant and equipment was $219 million and $424 million for the three and six months ended June 30, 2022, respectively, and $239 million and $439 million for the three and six months ended June 30, 2021, respectively.

In June 2022, we approved and announced our proposed plan to restructure our U.K. operations. This plan includes permanently closing the Ince facility and optimizing the remaining manufacturing operations at the Billingham facility. As a result, we recorded total charges of $162 million, including an asset impairment charge of $135 million to write down the property, plant and equipment at the Ince facility to its estimated salvage value, which are reflected in the line “U.K. operations restructuring” in our consolidated statements of operations for the three and six months ended June 30, 2022. The asset impairment consisted of $128 million related to machinery and equipment, $2 million relating to buildings and improvements,

and $5 million related to construction in progress. See Note 5—United Kingdom Operations, Proposed Restructuring and Impairment Charges for additional information.

Plant turnarounds—Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facilities during a full plant shutdown are referred to as plant turnarounds. The expenditures related to turnarounds are capitalized in property, plant and equipment when incurred.

Scheduled replacements and overhauls of plant machinery and equipment during a plant turnaround include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors and heat exchangers and the replacement of catalysts when a full plant shutdown occurs. Scheduled inspections, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications, are also conducted during full plant shutdowns. Internal employee costs and overhead amounts are not considered turnaround costs and are not capitalized. The following is a summary of capitalized plant turnaround costs:


	Six months ended June 30,
	2022		2021
	(in millions)
Net capitalized turnaround costs:
Beginning balance	$	355	$	226
Additions	26		89
Depreciation	(70)		(51)
Impairment	(7)		—
Effect of exchange rate changes	(4)		1
Ending balance	$	300	$	265