Property, plant and equipment, net

6 Months Ended

Jun. 30, 2020

Property, plant and equipment, net

Property, plant and equipment, net

6. PROPERTY, PLANT AND EQUIPMENT, NET

	June 30,		December 31,
	2020		2019
Satellites	$	397	$	397
Equipment		197		196
Leasehold improvements		81		75
Computer hardware		72		67
Furniture and fixtures		16		15
Construction in process 1		486		388
Property, plant and equipment, at cost		1,249		1,138
Accumulated depreciation		(426)		(380)
Property, plant and equipment, net	$	823	$	758

¹Construction in process is primarily related to the construction of the Company’s WorldView-Legion satellite constellation.

Depreciation expense for property, plant and equipment was $23 million and $28 million, and $47 million and $56 million for the three and six months ended June 30, 2020 and June 30, 2019, respectively.

During the three months ended June 30, 2019, the Company received insurance recoveries of $183 million related to the loss of the WorldView-4 satellite. The insurance proceeds are included in operating cash flows as they are considered business interruption insurance and represent the satellite’s loss of capacity to produce imagery for sale to the Company’s customers.