(7) Property, Plant, and Equipment:

Property, plant, and equipment, net at December 31, 2022 and 2021 are as follows:




	Estimated	December 31,		December 31,
($ in millions)	Useful Lives	2022		2021

Land	N/A	$	244	$	251
Buildings and leasehold improvements	40 years		1,212		1,195
General support	5 to 15 years		290		212
Central office/electronic circuit equipment	5 to 8 years		1,807		1,266
Poles	30 years		797		677
Cable, fiber, and wire	15 to 25 years		5,756		4,101
Conduit	50 years		1,404		1,374
Materials and supplies			546		139
Construction work in progress			1,130		492
Property, plant, and equipment			13,186		9,707
Less: Accumulated depreciation			(1,336)		(508)
Property, plant, and equipment, net		$	11,850	$	9,199

As of April 30, 2021, as a result of fresh start accounting, we have adjusted our property, plant, and equipment balance to fair value. See Note 4 for additional information. Property, plant, and equipment includes approximately $121 million and $129 million of fixed assets recognized under capital leases as of December 31, 2022 and 2021, respectively.

During 2022, we sold a property that was subject to leaseback, generating approximately $70 million in proceeds.

During 2022, our materials and supplies increased by approximately $400 million, as compared to 2021. This increase was primarily due to our fiber build plans and consumer premises. Components of this include an increase in fiber, network electronics, and customer premises equipment.

During 2021, we sold certain properties consisting of land and buildings for approximately $15 million in cash. The aggregate carrying value of the properties was approximately $14 million, resulting in a gain on sale of $1 million, which, given our composite group method of accounting for depreciation, was recognized against “Accumulated Depreciation” in our consolidated balance sheet. We also sold certain properties subject to leaseback, generating $23 million in proceeds.

During 2020, we sold certain properties consisting of land and buildings for approximately $27 million in cash. The aggregate carrying value of the properties was approximately $37 million, resulting in a loss on the sale of $10 million, which, given our composite group method of accounting for depreciation, was recognized against “Accumulated Depreciation” in our consolidated balance sheet.

During the year ended December 31, 2022, our capital expenditures were $2,738 million. In addition, we had an increase of $797 million in capital expenditures due to changes in accounts payable as of December 31, 2022. For the year ended December 31, 2022 we had capitalized interest of $33 million.

Depreciation expense is principally based on the composite group method. Depreciation expense was as follows:




	Successor				Predecessor
	For the year ended		For the eight months		For the four months		For the year ended
	December 31,		ended December 31,		ended April 30,		December 31,
($ in millions)	2022		2021		2021		2020

Depreciation expense	$	861	$	520	$	407	$	1,225

We adopted revised estimated remaining useful lives for certain plant assets as of October 1, 2022, as a result of an annual independent study of the estimated remaining useful lives of our plant assets, with an insignificant impact to depreciation expense.