Property, Plant and Equipment

6 Months Ended

Jun. 30, 2011

Property, Plant and Equipment [Abstract]

(5) Property, Plant and Equipment:

Property, plant and equipment is as follows:

($ in thousands)	June 30, 2011			December 31, 2010

Property, plant and equipment	$	13,153,166		$	12,795,280
Less: Accumulated depreciation		(5,562,443	)		(5,204,666	)
Property, plant and equipment, net	$	7,590,723		$	7,590,614

Depreciation expense is principally based on the composite group method. Depreciation expense was $225.4 million and $85.9 million for the three months ended June 30, 2011 and 2010, respectively, and $444.5 million and $172.9 million for the six months ended June 30, 2011 and 2010, respectively. As a result of an independent study of the estimated remaining useful lives of our Frontier legacy plant assets, we adopted new lives for certain plant assets as of October 1, 2010. In addition, we commissioned an independent study to determine the estimated remaining useful lives of plant assets for our Acquired Business. These new lives were adopted effective July 1, 2010.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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