Property, Plant and Equipment, Net

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

Property, plant and equipment, net consist of the following (in thousands):



	September 30, 2018			December 31, 2017
Land and land improvements	$	17,547		$	17,846
Buildings and leasehold improvements	113,486			106,316
Furniture and equipment	231,261			202,897
Sub-total	362,294			327,059
Accumulated depreciation	(150,280		)	(130,814		)
Property, plant and equipment in service, net	$	212,014		$	196,245
Construction in progress	121,296			117,173
Property, plant and equipment, net	$	333,310		$	313,418

At September 30, 2018 and December 31, 2017, property, plant and equipment, net, with a net carrying value of $86.8 million and $82.8 million, respectively, was located outside the United States.

During the nine month period ended September 30, 2018, the increase in Property, Plant and Equipment is due primarily to spending on equipment for compliance with the Drug Supply Chain Security Act ("DSCSA") requirements and expansion and modernization initiatives at our Decatur and Somerset manufacturing plants.

At September 30, 2018, the Company had $121.3 million of assets under construction which consisted primarily of investment in building expansions, equipment, and compliance with DSCSA. Depreciation will begin on these assets once they are placed into service. These projects are expected to be completed in 2018 and 2019. The Company assesses its long-lived assets, consisting primarily of property and equipment, for impairment when material events and changes in circumstances indicate that the carrying value may not be recoverable. During the nine month period ended September 30, 2018, the Company recorded impairment losses of $0.1 million. No impairment losses were recorded in 2017.

The Company recorded depreciation expense of $7.0 million and $6.3 million during the three month periods ended September 30, 2018 and 2017, respectively, and $21.1 million and $17.5 million during the nine month periods ended September 30, 2018 and 2017, respectively.