Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.7.0.1
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
 
Property, plant and equipment, net consists of LNG terminal costs and fixed assets and other, as follows (in millions):
 
 
June 30,
 
December 31,
 
 
2017
 
2016
LNG terminal costs
 
 
 
 
LNG terminal
 
$
10,436

 
$
7,978

LNG terminal construction-in-process
 
12,926

 
12,995

LNG site and related costs
 
81

 
41

Accumulated depreciation
 
(702
)
 
(555
)
Total LNG terminal costs, net
 
22,741

 
20,459

Fixed assets and other
 
 

 
 

Computer and office equipment
 
13

 
13

Furniture and fixtures
 
17

 
17

Computer software
 
88

 
85

Leasehold improvements
 
40

 
43

Land
 
59

 
61

Other
 
23

 
22

Accumulated depreciation
 
(77
)
 
(65
)
Total fixed assets and other, net
 
163

 
176

Property, plant and equipment, net
 
$
22,904

 
$
20,635



Depreciation expense was $89 million and $32 million in the three months ended June 30, 2017 and 2016, respectively, and $159 million and $56 million in the six months ended June 30, 2017 and 2016, respectively. During the three and six months ended June 30, 2017, we recognized a $5 million loss on sale of assets, which is included in other operating costs and expenses on our Consolidated Statements of Operations.

We realized offsets to LNG terminal costs of $39 million and $132 million in the three months ended June 30, 2017 and 2016, respectively, and $170 million and $146 million in the six months ended June 30, 2017 and 2016, respectively, that were related to the sale of commissioning cargoes because these amounts were earned or loaded prior to the start of commercial operations of the respective Train of the SPL Project, during the testing phase for its construction.