Property, Plant and Equipment-Net

3 Months Ended

Mar. 31, 2026

Property, Plant, and Equipment, after Accumulated Depreciation, Depletion, and Amortization [Abstract]

Property, Plant and Equipment-Net

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

	March 31,  2026		December 31,  2025
	(in millions)
Land	$	108	$	109
Machinery and equipment	14,014		13,957
Buildings and improvements	1,048		1,043
Construction in progress	801		709
Property, plant and equipment(1)	15,971		15,818
Less: Accumulated depreciation and amortization	9,247		9,103
Property, plant and equipment—net	$	6,724	$	6,715

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(1)As of March 31, 2026 and December 31, 2025, we had property, plant and equipment that was accrued but unpaid of $138 million and $118 million, respectively. As of March 31, 2025 and December 31, 2024, we had property, plant and equipment that was accrued but unpaid of $87 million and $101 million, respectively.

Depreciation and amortization related to property, plant and equipment was $227 million and $220 million for the three months ended March 31, 2026 and 2025, respectively.

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 plant turnarounds are capitalized in property, plant and equipment when incurred.

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

The following is a summary of capitalized plant turnaround costs:

	Three months ended   March 31,
	2026		2025
	(in millions)
Net capitalized plant turnaround costs as of January 1	$	427	$	363
Additions	69		20
Depreciation	(39)		(37)
Effect of exchange rate changes and other	(2)		(3)
Net capitalized plant turnaround costs as of March 31	$	455	$	343

Yazoo City Incident

In November 2025, we experienced an incident in the AN upgrade area at our Yazoo City complex. The facility’s ammonia plant and other upgrade units were not damaged by the incident. However, the incident required us to temporarily idle all production at the site. As a result of the property damage incurred and based on estimates and assumptions of a preliminary review of the impact, in the fourth quarter of 2025, we recorded an impairment of certain fixed assets within our North American AN asset group of $25 million, which primarily consisted of machinery and equipment.

The Yazoo City incident is a covered event under our comprehensive insurance coverage for property damage, business interruption and other insurable exposures applicable to our global manufacturing plants and properties. In the first quarter of 2026, we filed initial insurance claims for both property damage and business interruption related to the Yazoo City incident. We have subsequently received initial acceptance of our claims from the insurance carriers and are continuing to work with the carriers to determine the total value of the claims. We expect to receive insurance proceeds over the rebuilding period of the Yazoo City plant.

In the first quarter of 2026, as a result of the $25 million asset impairment previously recorded and the insurance carriers’ acceptance of our claims and authorization for the initial payment, we recognized $25 million of property damage insurance recoveries. The $25 million of recoveries is included in other operating (income) expense—net in our consolidated statement of operations. The corresponding insurance receivable is included in other current assets on our consolidated balance sheet as of March 31, 2026.

No business interruption insurance recoveries were recognized during the first quarter of 2026, as such recoveries represent gain contingencies and are recognized when realized. In April 2026, we received initial proceeds of $75 million, inclusive of the $25 million of property damage insurance recoveries recognized in the first quarter of 2026.

Sale of Ince Facility

In the first quarter of 2025, our previously decommissioned Ince, U.K. facility was sold, including certain liabilities assumed by the buyer. As a result, we recognized a loss of $23 million, which was reflected in U.K. operations restructuring in our consolidated statement of operations for the three months ended March 31, 2025.