Property, Plant and Equipment

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

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


	Depreciable Life	March 31, 2021		December 31, 2020
Land	—	$	12	$	12
Building and improvements	10 - 40 years	47		47
Pipeline and equipment (1)	10 - 30 years	1,260		1,263
Other	5 - 25 years	35		34
		1,354		1,356
Accumulated depreciation and amortization (2)		(674)		(661)
		680		695
Construction in progress		6		4
Property, plant and equipment, net		$	686	$	699

(1) As of both March 31, 2021 and December 31, 2020, includes costs of $372 million related to assets under operating leases (as lessor). As of both March 31, 2021 and December 31, 2020, includes cost of $23 million related to assets under capital lease (as lessee).

(2) As of March 31, 2021 and December 31, 2020, includes accumulated depreciation of $150 million and $147 million, respectively, related to assets under operating leases (as lessor). As of both March 31, 2021 and December 31, 2020, includes accumulated amortization of $8 million related to assets under capital lease (as lessee).

Depreciation and amortization expense on property, plant and equipment for both the three months ended March 31, 2021 and March 31, 2020 was $13 million 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 (as lessor) and capital (as lessee) leases.

Impairment of certain property, plant and equipment

On January 25, 2021, we executed an agreement to divest the 12” segment of the Auger pipeline, however, this agreement was subsequently terminated. As a result of the intended divestment, we recorded an impairment charge of approximately $3 million during the first quarter of 2021. The remainder of the Auger pipeline will continue to operate under the ownership of Pecten. Refer to Note 12 – Subsequent Events for additional information on this divestiture.