Property, plant and equipment, net

12 Months Ended

Dec. 31, 2020

Property, plant and equipment, net

Property, plant and equipment, net

8.  PROPERTY, PLANT AND EQUIPMENT, NET

	December 31,		December 31,
	2020		2019
Satellites	$	397	$	397
Equipment		207		196
Leasehold improvements		81		75
Computer hardware		78		67
Furniture and fixtures		15		15
Construction in process1		572		388
Property, plant and equipment, at cost		1,350		1,138
Accumulated depreciation		(467)		(380)
Property, plant and equipment, net	$	883	$	758

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

Depreciation expense for property, plant and equipment was $93 million, $107 million and $150 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Sale leaseback

During the fourth quarter of 2019, the Company completed the sale and subsequent leaseback of Company owned properties in Palo Alto, California for net proceeds of $280 million. The Company recognized a gain on the sale of the properties of $136 million, which was adjusted for off-market leaseback terms, and is included in Gain on sale of assets in the Company’s Consolidated Statement of Operations. During 2020, the Company recognized a $4 million reduction in the gain due to the extension of the lease term on one of the properties, which is included in Gain on sale of assets in the Company’s Consolidated Statement of Operations.

Sale of building

During the fourth quarter of 2018, the Company completed the sale of one of its buildings in Palo Alto, California for net proceeds of $68 million. The sale resulted in a gain of $33 million from the sale, which is included in Gain on sale of assets in the Company’s Consolidated Statements of Operations.