Property, Plant and Equipment, Net

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property, plant and equipment, net, is comprised of the following at the dates indicated (in millions):


	March 31, 2021		December 31, 2020
Land	$	83	$	86
Buildings and improvements	662		664
Machinery and equipment	2,309		2,314
	3,054		3,064
Less: Accumulated depreciation	(1,903)		(1,888)
	$	1,151	$	1,176

Depreciation expense was $52 million and $48 million for the three months ended March 31, 2021 and 2020, respectively.

During the first quarter of 2020, the Company concluded that a triggering event had occurred for all of its reporting units as a result of the COVID-19 pandemic. Pursuant to the authoritative accounting literature, the Company compared the sum of the undiscounted future cash flows attributable to the asset or group of assets (the lowest level for which identifiable cash flows are available) to their respective carrying amount and recorded a non-cash impairment charge of approximately $1 million during the three months ended March 31, 2020, in the Home Solutions segment associated with its Yankee Candle retail store business. The impairment charge was calculated by subtracting the estimated fair value of the asset group from its carrying value. See Footnote 1 for further information.

During the first quarter of 2020, the Company also recorded a non-cash impairment charge of $5 million to reflect a reduction in the carrying values of operating lease assets, mostly related to its Yankee Candle retail store business.