Property, Plant and Equipment, Net

6 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

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



(in thousands)	JUNE 30, 2019			DECEMBER 31, 2018
Manufacturing equipment	$	17,773		$	2,366
Laboratory equipment	7,169			6,038
Furniture and fixtures	1,620			1,815
Software, computer and other equipment	6,550			2,702
Leasehold improvements	29,511			4,072
Construction-in-progress	3,345			49,057
Property, plant and equipment	65,968			66,050
Less: Accumulated depreciation	(7,373		)	(5,525		)
Property, plant and equipment, net	$	58,595		$	60,525

Manufacturing Plant Build-Out

In the second quarter of 2019, the Company completed the build-out on its own manufacturing plant in Athlone, Ireland, for which it leases approximately 30,000 square feet of interior floor space and as such is not the legal owner of the space. However, in accordance with ASC Topic 842, the Company was deemed to be the owner of the leased space prior to completion of construction. Upon completion, the Company performed a sale-leaseback analysis and accounted for the transaction as a sale. The Company therefore derecognized the build-to-suit asset and the corresponding build-to-suit facility lease obligation of approximately $4.4 million as of the completion date. No gain or loss arose from the derecognition. The Company concurrently recognized an operating lease ROU asset and a corresponding operating lease liability related to the leaseback of the facility. See Note 6 for additional information.

The build-to-suit facility lease obligation was approximately $4.5 million as of December 31, 2018.

Also, upon completion of the build-out in the second quarter of 2019, amounts previously classified as construction-in-progress related to the manufacturing plant placed into service have been transferred to leasehold improvements and manufacturing equipment and are being amortized in accordance with the Company’s policy. See Note 2 for additional information.