Property, plant and equipment

9 Months Ended

Sep. 30, 2020

5. Property, plant and equipment (“PP&E”)

Oil and Gas assets/ Facilities, Corporate assets


Cost	Nine months ended September 30, 2020			Year ended December 31, 2019
Balance, beginning of period	$	10,388		$	10,776
Capital expenditures		46			103
Dispositions		—			(52	)
Transfer from/(to) assets held for sale		423			(423	)
Net decommissioning dispositions		(42	)		(16	)

Balance, end of period	$	10,815		$	10,388


Accumulated depletion and depreciation	Nine months ended September 30, 2020		Year ended December 31, 2019
Balance, beginning of period	$	8,709	$	8,202
Depletion and depreciation		99		236
Impairments		763		658
Transfers from/(to) asset held for sale		346		(346	)
Dispositions		—		(41	)

Balance, end of period	$	9,917	$	8,709


	As at
Net book value	September 30, 2020		December 31, 2019
Total	$	898	$	1,679

Right-of-use

assets

The following table includes a break-down of the categories for right-of-use assets. Refer to Note 8 for further discussion on amendments to our office lease agreement.


Cost
	Office			Transportation			Vehicle		Surface		Total
Balance, January 1, 2019	$	15		$	17		$	3	$	2	$	37
Additions (Terminations)		(2	)		—			1		—		(1	)

Balance, December 31, 2019	$	13		$	17		$	4	$	2	$	36
Additions (Terminations)		(13	)		(2	)		2		—		(13	)

Balance, September 30, 2020	$	—		$	15		$	6	$	2	$	23


Accumulated amortization
	Office			Transportation		Vehicle		Surface		Total
Balance, January 1, 2019	$	—		$	—	$	—	$	—	$	—
Amortization		3			6		1		—		10

Balance, December 31, 2019	$	3		$	6	$	1	$	—	$	10
Amortization		—			4		1		—		5
Termination		(3	)		—		—		—		(3	)

Balance, September 30, 2020	$	—		$	10	$	2	$	—	$	12


	As at
Net book value	September 30, 2020		December 31, 2019
Total	$	11	$	26

In the first quarter of 2020, the Company entered into an amending agreement with our building landlord which resulted in renewed lease terms for our Calgary office space. Under the revised agreement, the office lease no longer meets the criteria to be classified as a

right-of-use

asset. The office lease provision referenced in Notes 7 and 8 has been updated to reflect the accounting treatment under the revised terms.

Total PP&E

Total PP&E including Oil and Gas assets, Facilities, Corporate assets and

Right-of-use

assets is as follows:


	As at
PP&E	September 30, 2020		December 31, 2019
Oil and Gas assets, Facilities, Corporate assets	$	898	$	1,679
Right-of-use assets		11		26

Total	$	909	$	1,705

At September 30, 2020, the Company completed an assessment to determine if indicators of impairment or an impairment reversal were present. No indicators were noted.

During the first quarter of 2020, the Company completed impairment tests across all of our Cash Generating Units (“CGU’s”) as a result of the low commodity price environment, primarily due to the impact of the

COVID-19

pandemic and concerns regarding potential lack of storage forcing production

shut-ins.

This led to the Company recording $763 million of

non-cash

impairments, which included $702 million within our Cardium CGU, $58 million within our Peace River CGU and $19 million within our corporate assets. Additionally, a $16 million impairment recovery was recorded within our Legacy CGU as a result of the Company increasing our discount rate used in our decommissioning liability due to current market conditions.