Property, Plant and Equipment-Net

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment, Net [Abstract]

Property, Plant and Equipment-Net

Property, Plant and Equipment—Net

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

	September 30, 2020		December 31, 2019
	(in millions)
Land	$	67	$	71
Machinery and equipment	12,389		12,338
Buildings and improvements	891		890
Construction in progress	307		236
Property, plant and equipment(1)	13,654		13,535
Less: Accumulated depreciation and amortization	5,930		5,365
Property, plant and equipment—net	$	7,724	$	8,170

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(1)As of September 30, 2020 and December 31, 2019, we had property, plant and equipment that was accrued but unpaid of approximately $73 million and $42 million, respectively. As of September 30, 2019 and December 31, 2018, we had property, plant and equipment that was accrued but unpaid of $61 million and $48 million, respectively.

Depreciation and amortization related to property, plant and equipment was $207 million and $650 million for the three and nine months ended September 30, 2020, respectively, and $218 million and $648 million for the three and nine months ended September 30, 2019, respectively.

During the first quarter of 2019, we entered into an agreement to sell our Pine Bend dry bulk storage and logistics facility in Minnesota. In April 2019, we completed the sale, received proceeds of $55 million and recognized a pre-tax gain of $45 million. The gain is reflected in other operating—net in our consolidated statement of operations for the nine months ended September 30, 2019.

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. The following is a summary of capitalized plant turnaround costs:

	Nine months ended   September 30,
	2020		2019
	(in millions)
Net capitalized turnaround costs:
Beginning balance	$	246	$	252
Additions	68		94
Depreciation	(77)		(85)
Effect of exchange rate changes	(2)		—
Ending balance	$	235	$	261

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 amounts are not considered turnaround costs and are not capitalized.