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Property, Plant and Equipment (Tables)
9 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment and Accumulated Depreciation
The historical costs of our property, plant and equipment and related balances were as follows at the dates indicated:

 
 
Estimated
Useful Life
in Years
   
September 30,
2022
   
December 31,
2021
 
Plants, pipelines and facilities (1)
   
3-45
(5)
 
$
54,145
   
$
51,636
 
Underground and other storage facilities (2)
   
5-40
(6)
   
4,322
     
4,327
 
Transportation equipment (3)
   
3-10
     
217
     
209
 
Marine vessels (4)
   
15-30
     
923
     
918
 
Land
           
387
     
379
 
Construction in progress
           
2,470
     
1,616
 
   Subtotal
           
62,464
     
59,085
 
Less accumulated depreciation
           
18,360
     
17,083
 
   Subtotal property, plant and equipment, net
           
44,104
     
42,002
 
Capitalized major maintenance costs for reaction-based
   plants, net of accumulated amortization (7)
           
63
     
86
 
   Property, plant and equipment, net
         
$
44,167
   
$
42,088
 

(1)
Plants, pipelines and facilities include processing plants; NGL, natural gas, crude oil and petrochemical and refined products pipelines; terminal loading and unloading facilities; buildings; office furniture and equipment; laboratory and shop equipment and related assets.
(2)
Underground and other storage facilities include underground product storage caverns; above ground storage tanks; water wells and related assets.
(3)
Transportation equipment includes tractor-trailer tank trucks and other vehicles and similar assets used in our operations.
(4)
Marine vessels include tow boats, barges and related equipment used in our marine transportation business.
(5)
In general, the estimated useful lives of major assets within this category are: processing plants, 20-35 years; pipelines and related equipment, 5-45 years; terminal facilities, 10-35 years; buildings, 20-40 years; office furniture and equipment, 3-20 years; and laboratory and shop equipment, 5-35 years.
(6)
In general, the estimated useful lives of assets within this category are: underground storage facilities, 5-35 years; storage tanks, 10-40 years; and water wells, 5-35 years.
(7)
For reaction-based plants, we use the deferral method when accounting for major maintenance activities.  Under the deferral method, major maintenance costs are capitalized and amortized over the period until the next major overhaul project.  On a weighted-average basis, the expected amortization period for these costs is 1.7 years.
The following table summarizes our depreciation expense and capitalized interest amounts for the periods indicated:

   
For the Three Months
Ended September 30,
   
For the Nine Months
Ended September 30,
 
 
 
2022
   
2021
   
2022
   
2021
 
Depreciation expense (1)
 
$
446
   
$
424
   
$
1,329
   
$
1,273
 
Capitalized interest (2)
   
22
     
23
     
60
     
64
 

(1)
Depreciation expense is a component of “Costs and expenses” as presented on our Unaudited Condensed Statements of Consolidated Operations.
(2)
We capitalize interest costs incurred on funds used to construct property, plant and equipment while the asset is in its construction phase.  The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life as a component of depreciation expense.  When capitalized interest is recorded, it reduces interest expense from what it would be otherwise.
AROs
The following table presents information regarding our asset retirement obligations, or AROs, since December 31, 2021:

ARO liability balance, December 31, 2021
 
$
176
 
Liabilities incurred (1)
   
14
 
Revisions in estimated cash flows (2)
   
25
 
Liabilities settled (3)
   
(3
)
Accretion expense (4)
   
7
 
ARO liability balance, September 30, 2022
 
$
219
 

(1)
Represents the initial recognition of estimated ARO liabilities during period.
(2)
Represents subsequent adjustments to estimated ARO liabilities during period.
(3)
Represents cash payments to settle ARO liabilities during period.
(4)
Represents net change in ARO liability balance attributable to the passage of time and other adjustments, including true-up amounts associated with revised closure estimates.