Property, Plant, and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

7. PROPERTY, PLANT, AND EQUIPMENT

Summary by Major Class

Major classes of property, plant, and equipment, including assets held under finance leases, consisted of the following (in millions):


	December 31,
	2021		2020
Land	$	494	$	485
Crude oil processing facilities	32,744		32,246
Transportation and terminaling facilities	5,747		5,290
Waste and renewable feedstocks processing facilities	1,826		631
Corn processing facilities	1,216		1,212
Administrative buildings	1,055		1,038
Finance lease ROU assets (see Note 6)	2,293		1,902
Other	1,835		1,764
Construction in progress	1,862		2,399
Property, plant, and equipment, at cost	49,072		46,967
Accumulated depreciation	(18,225)		(16,578)
Property, plant, and equipment, net	$	30,847	$	30,389

Depreciation expense for the years ended December 31, 2021, 2020, and 2019 was $1.7 billion, $1.6 billion, and $1.5 billion, respectively.

Changes in Useful Lives

In September 2021 and 2020, we reduced the estimated useful lives of our ethanol plants in Jefferson, Wisconsin and Riga, Michigan, respectively, which reduced their net book values to estimated salvage value. The additional depreciation expense for the years ended December 31, 2021 and 2020 of $48 million and $30 million, respectively, resulting from these changes did not have a material impact on our results of operations nor was there a material impact to our financial position.

The Jefferson plant was temporarily idled in 2020 at the onset of the COVID-19 pandemic in response to the decreased demand for ethanol resulting from the effects of the pandemic on our business, and we had previously evaluated this plant for potential impairment assuming that operations would resume. However, we completed an evaluation of the plant during the third quarter of 2021 and concluded that it was no longer a strategic asset for our ethanol business. The plant’s operations permanently ceased at that time.

The Riga plant was temporarily idled in 2019 due to corn quality issues with the local third-party corn feedstock supply. Although we expected operations to resume after an improved corn harvest, we completed an evaluation of this plant during the third quarter of 2020 and concluded that it was no longer a strategic asset for our ethanol business. The plant’s operations permanently ceased at that time.