XML 32 R17.htm IDEA: XBRL DOCUMENT v3.24.0.1
Property, Plant and Equipment-Net
 12 Months Ended
Dec. 31, 2023
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,
 20232022
 (in millions)
Land$114 $113 
Machinery and equipment13,716 12,633 
Buildings and improvements1,020 914 
Construction in progress394 203 
Property, plant and equipment(1)
15,244 13,863 
Less: Accumulated depreciation and amortization8,103 7,426 
Property, plant and equipment—net$7,141 $6,437 
_______________________________________________________________________________
(1)As of December 31, 2023 and 2022, we had property, plant and equipment that was accrued but unpaid of approximately $68 million and $53 million, respectively.

Depreciation and amortization related to property, plant and equipment was $861 million, $838 million and $871 million in 2023, 2022 and 2021, 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 7—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 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:
 Year ended December 31,
 202320222021
 (in millions)
Net capitalized turnaround costs as of January 1$312 $355 $226 
Additions165 118 250 
Depreciation(138)(134)(121)
Impairment related to U.K. operations— (21)— 
Acquisition of Waggaman ammonia production facility16 — — 
Effect of exchange rate changes and other(3)(6)— 
Net capitalized turnaround costs as of December 31$352 $312 $355