Property, Plant and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

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

 

		December 31,
	Depreciable Life	2021		2020
Land	—	$	12	$	12
Building and improvements	10 - 40 years	45		47
Pipeline and equipment (1)	10 - 30 years	1,240		1,263
Other	5 - 25 years	35		34
		1,332		1,356
Accumulated depreciation and amortization (2)		(690)		(661)
		642		695
Construction in progress		12		4
Property, plant and equipment, net		$	654	$	699

(1) As of December 31, 2021 and 2020, includes cost of $366 million and $372 million, respectively, related to assets under operating    leases (as lessor). As of both December 31, 2021 and 2020, includes cost of $23 million related to assets under capital lease (as lessee).

(2) As of December 31, 2021 and 2020, includes accumulated depreciation of $155 million and $147 million, respectively, related to assets under operating leases (as lessor), which commenced in May 2017 and December 2017. As of December 31, 2021 and 2020, includes accumulated depreciation of $9 million and $8 million, respectively, related to assets under capital lease (as lessee).

Depreciation and amortization expense on property, plant and equipment for 2021, 2020 and 2019 was $50 million, $50 million and $49 million, respectively, and is included in cost and expenses in the accompanying consolidated statements of income. Depreciation and amortization expense on property, plant and equipment includes amounts pertaining to assets under operating (as lessor) and capital 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 and the extent of use of certain long-lived assets, we evaluated whether an impairment indicator existed as of December 31, 2021. 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 or any future downturn continues 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.

May 2021 Transaction

Effective May 1, 2021, Triton sold to SOPUS, as designee of SPLC, the Anacortes Assets. In exchange for the Anacortes Assets, SPLC paid Triton $10 million in cash and transferred to the Operating Company, as designee of Triton, SPLC’s 7.5% interest in Zydeco. Effective May 1, 2021, the Partnership owns a 100.0% ownership interest in Zydeco. Refer to Note 3 – Acquisitions and Other Transactions for additional information on this transaction.

Auger Divestiture

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. On April 29, 2021, we executed a new agreement to divest this segment of pipeline, effective June 1, 2021. We received approximately $2 million in cash consideration for this sale. The remainder of the Auger pipeline continues to operate under the ownership of Pecten. Refer to Note 3 – Acquisitions and Other Transactions for additional information on this divestiture.