Property, Plant and Equipment

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 4.  Property, Plant and Equipment

The historical costs of our property, plant and equipment and related balances were as follows at the dates indicated:

	Estimated Useful Life	December 31,
	in Years	2024		2023
Plants, pipelines and facilities (1)(5)	3-45	$	60,716	$	57,983
Underground and other storage facilities (2)(6)	5-40		4,704		4,401
Transportation equipment (3)	3-10		272		242
Marine vessels (4)	15-30		949		935
Land			424		411
Construction in progress			4,138		2,245
Subtotal			71,203		66,217
Less accumulated depreciation			22,330		20,462
Subtotal property, plant and equipment, net			48,873		45,755
Capitalized major maintenance costs for reaction-based    plants, net of accumulated amortization (7)			189		49
Property, plant and equipment, net		$	49,062	$	45,804

(1)	Plants, pipelines and facilities include distillation-based and reaction-based plants; NGL, natural gas, crude oil and petrochemical and refined products pipelines; terminal loading and unloading facilities; buildings; office furniture and equipment; laboratory and shop equipment and related assets.
(2)	Underground and other storage facilities include underground product storage caverns; above ground storage tanks; water wells and related assets.
(3)	Transportation equipment includes tractor-trailer tank trucks and other vehicles and similar assets used in our operations.
(4)	Marine vessels include tow boats, barges and related equipment used in our marine transportation business.
(5)	In general, the estimated useful lives of major assets within this category are: distillation-based and reaction-based plants, 20-35 years; pipelines and related equipment, 5-45 years; terminal facilities, 10-35 years; buildings, 20-40 years; office furniture and equipment, 3-20 years; and laboratory and shop equipment, 5-35 years.
(6)	In general, the estimated useful lives of assets within this category are: underground storage facilities, 5-35 years; storage tanks, 10-40 years; and water wells, 5-35 years.
(7)	For reaction-based plants, we use the deferral method when accounting for major maintenance activities.  Under the deferral method, major maintenance costs are capitalized and amortized over the period until the next major overhaul project.  On a weighted-average basis, the expected remaining amortization period for these costs is 3.4 years.

The following table summarizes our depreciation expense and capitalized interest amounts for the years indicated:

	For the Year Ended December 31,
	2024		2023		2022
Depreciation expense (1)	$	1,974	$	1,860	$	1,779
Capitalized interest (2)		121		106		90

(1)	Depreciation expense is a component of “Third party and other costs” within “Costs and expenses” as presented on our Statements of Consolidated Operations.
(2)	Capitalized interest is a component of “Interest expense” as presented on our Statements of Consolidated Operations.

Asset Retirement Obligations

We record AROs in connection with legal requirements to perform specified retirement activities under contractual arrangements and/or governmental regulations.  Our contractual AROs primarily result from right-of-way agreements associated with our pipeline operations and property leases associated with our plant sites.  In addition, we record AROs in connection with governmental regulations associated with the abandonment or retirement of above-ground brine storage pits and certain marine vessels.  We also record AROs in connection with regulatory requirements associated with the renovation or demolition of certain assets containing hazardous substances such as asbestos.  We typically fund our AROs using cash flow from operations.

Property, plant and equipment at December 31, 2024 and 2023 includes $134 million and $109 million, respectively, of asset retirement costs capitalized as an increase in the associated long-lived asset.

The following table presents information regarding our AROs for the years indicated:

	For the Year Ended December 31,
	2024			2023			2022
ARO liability beginning balance	$	225		$	234		$	176
Liabilities incurred (1)		1			5			20
Revisions in estimated cash flows (2)		30			(12	)		30
Liabilities settled (3)		(4	)		(13	)		(10	)
Accretion expense (4)		13			11			18
ARO liability ending balance	$	265		$	225		$	234

(1)	Represents the initial recognition of estimated ARO liabilities during the period.
(2)	Represents subsequent adjustments to estimated ARO liabilities during the period.
(3)	Represents cash payments to settle ARO liabilities during the period.
(4)	Represents net change in ARO liability balance attributable to the passage of time and other adjustments, including true-up amounts associated with revised closure estimates.

Of the $265 million total ARO liability recorded at December 31, 2024, $6 million was reflected as a current liability and $259 million as a long-term liability.

The following table presents our forecast of ARO-related accretion expense for the years indicated:

2025		2026		2027		2028		2029
$	15	$	16	$	17	$	18	$	19

Impairments of Property, Plant and Equipment

The following table presents our non-cash asset impairment charges involving property, plant and equipment by business segment for the years indicated:

	For the Year Ended December 31,
	2024		2023		2022
NGL Pipelines & Services	$	28	$	12	$	23
Crude Oil Pipelines & Services		–		1		3
Natural Gas Pipelines & Services		7		5		6
Petrochemical & Refined Products Services		15		2		9
Total impairment charges for property, plant and equipment	$	50	$	20	$	41

Our impairment charges for the years ended December 31, 2024, 2023 and 2022 are attributable to the complete write-off of assets that are no longer expected to be used or constructed.