PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Mar. 28, 2020

Property, Plant and Equipment [Abstract]

Property and equipment consisted of the following:



(In thousands)	March 28, 2020			March 30, 2019
Land	$	4,779		$	7,337
Building and building improvements	101,296			118,821
Plant equipment and machinery	242,286			301,297
Office equipment and information technology	113,600			132,783
Haemonetics equipment	370,473			372,984
Total	832,434			933,222
Less: accumulated depreciation and amortization	(579,035		)	(589,243		)
Property, plant and equipment, net	$	253,399		$	343,979

Depreciation expense was $76.6 million, $76.8 million and $57.7 million in fiscal 2020, 2019 and 2018, respectively. There was $0.5 million of asset impairments included in depreciation expense during fiscal 2020 and no asset impairments included in depreciation expense during fiscal 2019. Fiscal 2018 included $0.3 million of additional depreciation expense due to asset impairments.

In December 2018, the Company entered into a lease for office space in Boston, MA to serve as its new corporate headquarters and replace its prior corporate headquarters located in Braintree, MA. As a result of this lease agreement, the Company received a lease incentive in the form of property, plant and equipment totaling $5.6 million which was recorded upon commencement of the lease term in October 2019. Refer to Note 12, Leases, for additional information regarding this lease.

During fiscal 2020, the Company sold $7.8 million of real estate and other assets associated with the Braintree corporate headquarters and entered into a lease with the buyer that allowed the Company to leaseback the facility on a rent-free basis through December 31, 2019 until the completion of its relocation to Boston, MA, which occurred during the third quarter of fiscal 2020. As a result of this transaction, the Company received net cash proceeds of $15.0 million and non-cash consideration of $0.9 million related to a free rent period ending in December 2019. The transaction resulted in a net gain of $8.1 million.

During the first quarter of fiscal 2020, the Company recognized a pre-tax impairment charge of $48.7 million relating to the Asset Transfer between the Company and CSL on May 13, 2019. This impairment is related to the carrying balances of the property, plant and equipment exceeding the consideration received under the terms of the Agreement. The charge will not result in any future cash expenditures. For additional information regarding the transaction, refer to Note 5 - Divestiture.

During fiscal 2020, the Company impaired an additional $1.9 million of property, plant and equipment as a result of the Company's corporate headquarter move and a review of underperforming assets, resulting in total impairment charges of $50.6 million during fiscal 2020. Substantially all of these impairments were included within selling, general and administrative costs on the consolidated statements of income and primarily impacted the Plasma reporting segment. During fiscal 2019 and 2018, the Company impaired $21.2 million and $2.2 million of property, plant and equipment, respectively.

During fiscal 2019, the Company recorded impairment charges of $21.2 million, which consisted of $19.8 million of charges related to the discontinued use of the HDC filter media manufacturing line and $1.4 million of charges related to non-core and underperforming assets. These impairments were included within cost of goods sold on the condensed consolidated statements of income and impacted the Blood Center reporting segment.

Additionally, in the second quarter of fiscal 2019, the Company changed the estimated useful lives of PCS^®2 devices included within Haemonetics Equipment, as these will be replaced by NexSys PCS^®devices. During fiscal 2020 and 2019, the Company incurred $18.1 million and $18.0 million, respectively, of accelerated depreciation expense related to this change in estimate. As of March 28, 2020, the majority of PCS2 devices are fully depreciated.