PROPERTY, PLANT, AND EQUIPMENT

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, net consist of the following:



	December 31,
(Dollars in millions)	2018			2019
Land and land improvements	$	47		$	42
Building and leasehold improvements	154			156
Machinery, equipment and other ⁽¹⁾	1,085			1,172
Construction-in-progress	29			47
Property, plant and equipment, gross	1,315			1,417
Accumulated depreciation ⁽¹⁾	(299		)	(472		)
Property, plant and equipment, net	$	1,016		$	945

(1) Includes finance lease assets and related amortization (see Note 8).

Interest costs capitalized, depreciation expense and finance lease asset amortization expense for the periods presented are as follows:



	Year Ended December 31,
(Dollars in millions)	2017		2018		2019
Interest costs capitalized	$	1	$	1	$	2
Depreciation expense	109		105		176
Finance lease asset amortization expense	—		—		1

Property, plant and equipment as of December 31, 2017, 2018 and 2019 include $8 million, $7 million and $15 million, respectively, of capital expenditures that were unpaid and included in Accounts payable and Accrued and other liabilities on the Consolidated Balance Sheets.

In June 2019, Verso completed the shutdown and closure of the Luke Mill. Depreciation expense for the year ended December 31, 2019 included $76 million in accelerated depreciation associated with this closure, which is included in Depreciation and amortization on the Consolidated Statements of Operations (see Note 14).

As of December 31, 2018, Property, plant and equipment was reduced by $4 million as a result of meeting all pertinent milestones of the Maine Technology Asset Fund 2.0 challenge grant, covering a portion of the capital costs associated with the upgrade of the previously shuttered No. 3 paper machine and pulp line at the Androscoggin Mill in Jay, Maine. Verso received the entire $4 million of grant funds in 2018.

During the first quarter of 2017, Verso recognized $6 million of accelerated depreciation related to the temporary idle of the No. 3 paper machine at the Androscoggin Mill, which is included in Depreciation and amortization on the Consolidated Statements of Operations (see Note 14).