Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 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			December 31,
	in Years			2022		2021
Plants, pipelines and facilities (1)		3-45	(5)	$	54,396	$	51,636
Underground and other storage facilities (2)		5-40	(6)		4,329		4,327
Transportation equipment (3)		3-10			222		209
Marine vessels (4)		15-30			921		918
Land					387		379
Construction in progress					2,867		1,616
Subtotal					63,122		59,085
Less accumulated depreciation					18,800		17,083
Subtotal property, plant and equipment, net					44,322		42,002
Capitalized major maintenance costs for reaction-based    plants, net of accumulated amortization (7)					79		86
Property, plant and equipment, net				$	44,401	$	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 remaining amortization period for these costs is 1.5 years.

Depreciation and Capitalized Interest

The following table summarizes our depreciation expense and capitalized interest amounts for the years indicated:

	For the Year Ended December 31,
	2022		2021		2020
Depreciation expense (1)	$	1,779	$	1,705	$	1,682
Capitalized interest (2)		90		80		115

(1)	Depreciation expense is a component of “Third party and other costs” within “Costs and expenses” as presented on our Statements of Consolidated Operations.
(2)	Capitalized interest is a component of “Interest expense” as presented on our Statements of Consolidated Operations.

AROs

The following table presents information regarding our AROs for the years indicated:

	For the Year Ended December 31,
	2022			2021			2020
ARO liability beginning balance	$	176		$	150		$	132
Liabilities incurred (1)		20			6			5
Revisions in estimated cash flows (2)		30			6			–
Liabilities settled (3)		(10	)		(4	)		(2	)
Accretion expense (4)		18			18			15
ARO liability ending balance	$	234		$	176		$	150

(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.

The following table presents our forecast of ARO-related accretion expense for the years indicated:

2023		2024		2025		2026		2027
$	13	$	13	$	14	$	15	$	16

Impairments of Property, Plant and Equipment

The following table presents our non-cash asset impairment charges involving property, plant and equipment by business segment for the years indicated:

	For the Year Ended December 31,
	2022		2021		2020
NGL Pipelines & Services (1)	$	23	$	20	$	208
Crude Oil Pipelines & Services (2)		3		15		45
Natural Gas Pipelines & Services (3)		6		56		44
Petrochemical & Refined Products Services (4)		9		127		293
Total impairment charges for property, plant and equipment	$	41	$	218	$	590

(1)	2020 amount includes an $87 million non-cash impairment charges associated with our South Texas processing assets.
(2)	2020 amount includes a $42 million non-cash impairment charge associated with the cancellation of our Midland-to-ECHO 4 Pipeline construction project.
(3)	2021 amount includes a $37 million non-cash impairment charge associated with the sale of components of our San Juan Gathering System.  2020 amount includes a $38 million non-cash impairment charge associated with our South Texas gathering assets.
(4)	2021 and 2020 amounts include non-cash impairment charges of $113 million and $252 million, respectively, associated with our marine transportation business.