Property, Plant and Equipment

3 Months Ended

Mar. 31, 2018

Public Utilities, Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

The following table sets forth the major classifications of our property, plant, and equipment and accumulated depreciation:

	March 31,				December 31,
In thousands	2018		2017		2017
Utility plant in service	$	3,003,962	$	2,867,271	$	2,975,217
Utility construction work in progress	177,133		76,631		159,924
Less: Accumulated depreciation	954,858		914,179		942,879
Utility plant, net	2,226,237		2,029,723		2,192,262
Non-utility plant in service	76,436		299,324		75,639
Non-utility construction work in progress	4,355		3,951		4,671
Less: Accumulated depreciation	17,918		46,157		17,598
Non-utility plant, net	62,873		257,118		62,712
Total property, plant, and equipment	$	2,289,110	$	2,286,841	$	2,254,974
Capital expenditures in accrued liabilities	$	21,923	$	11,564	$	34,976

Build-to-suit assets

In October 2017, we entered into a 20-year operating lease agreement commencing in 2020 for our new headquarters location in Portland, Oregon. Our existing headquarters lease expires in 2020. Our search and evaluation process focused on seismic preparedness, safety, reliability, least cost to our customers, and a continued commitment to our employees and the communities we serve. The lease was analyzed in consideration of build-to-suit lease accounting guidance, and we concluded that we are the accounting owner of the asset during construction. As a result, we have recognized $4.1 million and $0.5 million in property, plant and equipment and an obligation in other non-current liabilities for the same amount in our consolidated balance sheet at March 31, 2018 and December 31, 2017, respectively. In 2019, pursuant to the new lease standard issued by the FASB, we expect to de-recognize the associated build-to-suit asset and liability. See Note 14 in our 2017 Form 10-K.