Property, Plant and Equipment-Net

3 Months Ended

Sep. 30, 2023

Property, Plant and Equipment, Net [Abstract]

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


	September 30, 2023		December 31, 2022
	(in millions)
Land	$	114	$	113
Machinery and equipment	12,716		12,633
Buildings and improvements	923		914
Construction in progress	339		203
Property, plant and equipment(1)	14,092		13,863
Less: Accumulated depreciation and amortization	7,936		7,426
Property, plant and equipment—net	$	6,156	$	6,437

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(1)As of September 30, 2023 and December 31, 2022, we had property, plant and equipment that was accrued but unpaid of approximately $80 million and $53 million, respectively. As of September 30, 2022 and December 31, 2021, we had property, plant and equipment that was accrued but unpaid of approximately $60 million and $35 million, respectively.

Depreciation and amortization related to property, plant and equipment was $211 million and $633 million for the three and nine months ended September 30, 2023, respectively, and $219 million and $643 million for the three and nine months ended September 30, 2022, respectively.

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:


	Nine months ended September 30,
	2023		2022
	(in millions)
Net capitalized turnaround costs as of January 1	$	312	$	355
Additions	121		84

Depreciation	(95)		(101)
Impairment related to U.K. operations	—		(21)
Effect of exchange rate changes and other	(4)		(7)
Net capitalized turnaround costs as of September 30	$	334	$	310