Property, Plant and Equipment

6 Months Ended

Jun. 30, 2020

Property, Plant and Equipment [Abstract]

Property, plant and equipment consist of the following as of the dates indicated:


	Depreciable Life	June 30, 2020		December 31, 2019
Land	—	$	11	$	11
Building and improvements	10 - 40 years	47		40
Pipeline and equipment ⁽¹⁾	10 - 30 years	1,238		1,228
Other	5 - 25 years	34		33
		1,330		1,312
Accumulated depreciation and amortization ⁽²⁾		(639)		(613)
		691		699
Construction in progress		19		27
Property, plant and equipment, net		$	710	$	726

⁽¹⁾As of June 30, 2020 and December 31, 2019, includes costs of $371 million and $369 million, respectively, related to assets under operating lease (as lessor). As of both June 30, 2020 and December 31, 2019, includes cost of $23 million, related to right-of-use (“ROU”) assets under finance lease (as lessee).

⁽²⁾ As of June 30, 2020 and December 31, 2019, includes accumulated depreciation of $139 million and $133 million, respectively, related to assets under operating lease (as lessor). As of June 30, 2020 and December 31, 2019, includes accumulated amortization of $7 million and $6 million, respectively, related to ROU assets under finance lease (as lessee).

Depreciation and amortization expense on property, plant and equipment for the three and six months ended June 30, 2020 was $13 million and $26 million, respectively, and for the three and six months ended June 30, 2019 was $12 million and $24 million, respectively, and is included in costs and expenses in the accompanying unaudited consolidated statements of income. Depreciation and amortization expense on property, plant and equipment includes amounts pertaining to assets under operating leases (as lessor) and finance leases (as lessee).

We evaluate long-lived assets for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amount of our assets may not be recoverable. Due to the changes in market conditions as a result of the continuing effects of the COVID-19 pandemic, as of June 30, 2020, we evaluated whether an impairment indicator existed. Based on our

current forecast and expectations of market conditions, we determined that there was no triggering event that required us to update our impairment evaluation of property, plant and equipment. However, if current volatile market conditions deteriorate further or continue for an extended period of time, we may be required to assess the recoverability of our long-lived assets which could result in an impairment.