Property and Equipment, Net

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]



(amounts in thousands)	2019			2018
Land improvements	$	34,211		$	34,060
Buildings	502,315			501,659
Machinery and equipment	1,369,174			1,306,555
Total depreciable assets	1,905,700			1,842,274
Accumulated depreciation	(1,188,209		)	(1,138,898		)
	717,491			703,376
Land	69,262			69,188
Construction in progress	77,622			70,839
Total property and equipment, net	$	864,375		$	843,403

In the fourth quarter of 2019, we placed in service a newly constructed plant and corresponding machinery and equipment located within our Australasia segment.

In November 2016, we entered into a 17-year, non-cancelable build-to-suit arrangement for a corporate headquarters facility in Charlotte, North Carolina that was accounted for under the previously effective build-to-suit guidance contained in ASC840, Leases. Since we were involved in the construction of structural improvements prior to the commencement of the lease and took some level of construction risk, we were considered the accounting owner of the assets and land during the construction period. Further, since certain terms of the lease did not meet normal sale-leaseback criteria under ASC 840, Leases, we were considered the accounting owner after the construction period. In 2018, we recorded $20.0 million of build-to-suit assets included in property and equipment, net, and set up a corresponding financial obligation of $20.4 million included within long-term debt. In addition, in 2018, we received a tenant improvement allowance, increasing long-term debt by $4.2 million. Under current recently adopted guidance, ASC 842, Leases, this lease was reclassified as an operating lease and is now reflected within our operating lease balances included within Note 9 - Leases and is no longer reflected in our 2019 property and equipment, net, or long-term debt on the accompanying consolidated balance sheet.

We monitor all property and equipment for any indicators of potential impairment. We recorded impairment charges of $3.7 million, $1.1 million, and $1.5 million during the years ended December 31, 2019, 2018, and 2017 respectively.

The effect on our carrying value of property and equipment due to currency translations for foreign assets was a decrease of $2.0 million and $23.1 million for the years ended December 31, 2019 and 2018, respectively.

Depreciation expense was recorded as follows:



(amounts in thousands)	2019		2018		2017
Cost of sales	$	84,449	$	85,357	$	78,975
Selling, general and administrative	9,882		8,699		7,835
Total depreciation expense	$	94,331	$	94,056	$	86,810