Plant Turnaround Costs

3 Months Ended

Mar. 31, 2012

Plant Turnaround Costs

Plant Turnaround Costs

15.   Plant Turnaround Costs

        Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facilities are referred to as plant turnarounds. The expenditures related to turnarounds are capitalized into property, plant and equipment when incurred. The following is a summary of plant turnaround activity for the three months ended March 31, 2012 and 2011:

	Three months ended March 31,
	2012			2011
	(in millions)
Net capitalized turnaround costs:
Beginning balance	$	54.8		$	66.8
Additions		5.6			1.2
Depreciation		(8.0	)		(7.3	)
Effect of exchange rate changes		0.9			0.4
Ending balance	$	53.3		$	61.1

        Scheduled replacements and overhauls of plant machinery and equipment include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors, heat exchangers and the replacement of catalysts when a full plant shutdown occurs. Scheduled inspections are also conducted during full plant shutdowns, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications. Internal employee costs and overhead are not considered turnaround costs and are not capitalized.