Asset retirement obligations

12 Months Ended

Dec. 31, 2023

Asset Retirement Obligation Disclosure [Abstract]

13. Asset retirement obligations

Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets, including legal obligations for land reclamation. Recognition of a liability for an ARO is required in the period in which it is incurred at its estimated fair value. The associated asset retirement costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability is accreted through charges to Cost of revenues. If the ARO is settled for other than the carrying amount of the liability, a gain or loss on settlement is recognized.

ARO costs related to accretion of the Company’s liabilities and the depreciation of the related assets for the years ended December 31 were:


in $ millions	2023	2022	2021
Accretion	12	11	12
Depreciation	27	46	42
Total costs	39	57	54

AROs are reported within Other current liabilities and Other noncurrent liabilities in the Company’s accompanying Consolidated Balance Sheets. At December 31, 2023 and 2022, the carrying amount of the Company’s AROs were $360 million and $392 million, of which, $50 million and $63 million are current, respectively.