Property, Plant and Equipment, Net

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment, Net.

Property, Plant and Equipment, Net

10.     Property, Plant and Equipment, Net

	September 30,		December 31,
($ in millions)	2022		2021
Land	$	178	$	167
Buildings		2,083		2,081
Machinery and equipment		6,929		6,876
Construction-in-progress		1,430		1,179
		10,620		10,303
Accumulated depreciation		(3,882)		(3,801)
	$	6,738	$	6,502

Depreciation expense amounted to $117 million and $130 million for the three months ended September 30, 2022 and 2021, respectively, and $386 million and $380 million for the nine months ended September 30, 2022 and 2021, respectively.

During the third quarter of 2022, the company completed an evaluation of the estimated useful lives of its manufacturing equipment, buildings and certain assembly and test equipment. The company utilized a third-party appraiser to assist in the evaluation, which was performed as a result of the company’s experience with the duration over which its equipment can be utilized. Effective July 1, 2022, Ball revised the estimated useful lives of all of its equipment and buildings included in the analysis, which resulted in a net reduction in depreciation expense of approximately $24 million ($18 million after tax, or $0.06 per diluted share) for the three and nine months ended September 30, 2022, as compared to the amount of depreciation expense that would have been recognized by utilizing the prior depreciable lives. This change in useful lives is expected to reduce depreciation expense by approximately $48 million ($36 million after tax, or $0.11 per diluted share) for the year ending December 31, 2022.

As discussed in Note 4, in the second quarter of 2022, Ball recorded a non-cash impairment charge related to its Russian long-lived asset group, of which $296 million related to property, plant and equipment associated with the company’s Russian aluminum beverage packaging business, which resulted in fully impairing the assets which were subsequently disposed through the sale of the Russia aluminum beverage packaging business. See Note 4 for further details.