Property, Plant And Equipment

9 Months Ended

Sep. 30, 2011

Property, Plant And Equipment [Abstract]

Property, Plant And Equipment

(6) PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, net consisted of the following:

		000000000000			000000000000
	September 30, 2011			December 31, 2010
Leasehold improvements	$	48,869		$	40,196
Building and improvements		138,235			138,025
Manufacturing and laboratory equipment		70,609			59,711
Computer hardware and software		45,801			37,651
Furniture and equipment		7,553			6,573
Land		10,056			10,056
Construction-in-progress		52,924			14,729
	$	374,047		$	306,941
Less: Accumulated depreciation		(107,857	)		(85,075	)
Total property, plant and equipment, net	$	266,190		$	221,866

In August 2011, the Company acquired a bulk biologics manufacturing plant located in Shanbally, County Cork, Ireland (the Facility) for a total acquisition cost of $50.4 million, which includes $1.9 million of direct local transfer tax. The acquisition of the Facility was accounted for as a purchase of an asset, as it did not meet the definition of a business under ASC Topic 850, Business Combinations. Accordingly, the total purchase price was allocated to the identified assets based on their relative fair values on the date of acquisition.

The allocation of the purchase price was as follows:

		00000000000000
	Acquisition Date Relative Fair Value
Manufacturing and laboratory equipment	$	23,248
Furniture and fixtures		912
Computer hardware and software		328
Building and improvements		24,057
Land		1,127
Consumable supplies capitalized in other assets		766
Total purchase price		50,438
Less consumables		(766	)
Net property, plant and equipment acquired	$	49,672

As of September 30, 2011, the fair value of the acquired assets is included in the construction in-process balance as the assets have not been placed into service.

Depreciation expense during the three and nine months ended September 30, 2011 was $8.1 million and $22.8 million, respectively, of which $2.1 million and $4.1 million was capitalized into inventory, respectively. Depreciation expense during the three and nine months ended September 30, 2010 was $6.3 million and $16.4 million, respectively, of which $1.5 million and $3.2 million was capitalized into inventory, respectively.

Capitalized interest related to the Company's property, plant and equipment purchases for both the three and nine months ended September 30, 2011 was insignificant, compared to the three and nine months ended September 30, 2010 when capitalized interest was $0 and $0.7 million, respectively.