XML 31 R15.htm IDEA: XBRL DOCUMENT v3.22.4
Property, Plant and Equipment-Net
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment, Net [Abstract]  
Property, Plant and Equipment-Net Property, Plant and Equipment—Net
Property, plant and equipment—net consists of the following:
 December 31,
 20222021
 (in millions)
Land$113 $68 
Machinery and equipment(1)
12,633 12,757 
Buildings and improvements(1)
914 915 
Construction in progress(1)
203 148 
Property, plant and equipment(2)
13,863 13,888 
Less: Accumulated depreciation and amortization7,426 6,807 
Property, plant and equipment—net$6,437 $7,081 
_______________________________________________________________________________
(1)As of December 31, 2022, machinery and equipment, buildings and improvements, and construction in progress include impairment charges in 2022 of $354 million, $7 million and $25 million, respectively, which include impairment charges related to our U.K. operations of $204 million in 2022, and $182 million in 2021. As of December 31, 2021, machinery and equipment, buildings and improvements, and construction in progress include cumulative impairment charges related to our U.K. operations of $169 million, $5 million and $8 million, respectively, which were recorded in 2021.
(2)As of December 31, 2022 and 2021, we had property, plant and equipment that was accrued but unpaid of approximately $53 million and $35 million, respectively.

Depreciation and amortization related to property, plant and equipment was $838 million, $871 million and $876 million in 2022, 2021 and 2020, respectively.
In June 2022, we approved and announced our proposed plan to restructure our U.K. operations, including the planned permanent closure of our Ince facility and optimization of the remaining manufacturing operations at our Billingham facility. As a result, in the second quarter of 2022, we recorded an asset impairment charge of $135 million to write down the property, plant and equipment at the Ince facility to its estimated salvage value. 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.
In the third quarter of 2022, the United Kingdom continued to experience extremely high and volatile natural gas prices. Given the increase in the price of natural gas in the United Kingdom and the lack of a corresponding increase in global nitrogen product market prices, in September 2022, we temporarily idled ammonia production at our Billingham complex. As a result, we concluded that an additional impairment test was triggered for the asset groups that comprise the continuing U.K. operations. The results of our impairment test indicated that the carrying values for our U.K. Ammonia and U.K. AN asset groups exceeded the undiscounted estimated future cash flows. As a result, we recognized asset impairment charges of $87 million, of which $69 million related to property, plant and equipment, consisting of $57 million related to machinery and equipment and $12 million related to construction in progress. See Note 5—United Kingdom Operations 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 include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors, heat exchangers and the replacement of catalysts when a full plant shutdown occurs. Scheduled inspections are also conducted during full plant shutdowns, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications. 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:
 Year ended December 31,
 202220212020
 (in millions)
Net capitalized turnaround costs as of January 1$355 $226 $246 
Additions118 250 84 
Depreciation(134)(121)(104)
Impairment related to U.K. operations(21)— — 
Effect of exchange rate changes(6)— — 
Net capitalized turnaround costs as of December 31$312 $355 $226