Property, Plant and Equipment-Net

3 Months Ended

Jun. 30, 2024

Property, Plant and Equipment, Net [Abstract]

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


	June 30, 2024		December 31, 2023
	(in millions)
Land	$	114	$	114
Machinery and equipment	13,695		13,716
Buildings and improvements	1,015		1,020
Construction in progress	446		394
Property, plant and equipment(1)	15,270		15,244
Less: Accumulated depreciation and amortization	8,440		8,103
Property, plant and equipment—net	$	6,830	$	7,141

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(1)As of June 30, 2024 and December 31, 2023, we had property, plant and equipment that was accrued but unpaid of $71 million and $68 million, respectively. As of June 30, 2023 and December 31, 2022, we had property, plant and equipment that was accrued but unpaid of $63 million and $53 million, respectively.

Depreciation and amortization related to property, plant and equipment was $220 million and $472 million for the three and six months ended June 30, 2024, respectively, and $218 million and $422 million for the three and six months ended June 30, 2023, 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:


	Six months ended June 30,
	2024		2023
	(in millions)
Net capitalized turnaround costs as of January 1	$	352	$	312
Additions	38		47

Depreciation	(95)		(62)

Effect of exchange rate changes and other	(1)		1
Net capitalized turnaround costs as of June 30	$	294	$	298