Property, Plant, and Equipment

6 Months Ended

Jun. 30, 2020

Property Plant And Equipment [Abstract]

8.	Property, Plant, and Equipment

The components of property, plant, and equipment were as follows (dollars in millions):

	June 30,			December 31,
	2020			2019
Land and land improvements	$	177.5		$	177.5
Buildings		845.1			837.4
Machinery and equipment		5,793.7			5,727.4
Construction in progress		214.5			174.0
Other		86.2			81.5
Property, plant and equipment, at cost		7,117.0			6,997.8
Less accumulated depreciation		(4,002.3	)		(3,846.1	)
Property, plant, and equipment, net	$	3,114.7		$	3,151.7

During the second quarter of 2020, with the exacerbated deterioration in uncoated freesheet market conditions arising from the COVID-19 pandemic and the estimated impact on our Paper segment and its projected future results of operations, we identified a triggering event indicating possible impairment of our long lived assets within our Paper segment, including property, plant, and equipment, and performed a recoverability test on the Paper reporting unit long lived assets as of May 31, 2020. The recoverability test was based on forecasts of undiscounted cash flows. The results of the recoverability test indicated that the long lived assets within our Paper segment, inclusive of property, plant, and equipment, were 100% recoverable.

Depreciation expense for the three months ended June 30, 2020 and 2019 was $93.3 million and $85.8 million, respectively. During the six months ended June 30, 2020 and 2019, depreciation expense was $183.1 million and $171.0 million, respectively. We recognized $2.6 million of incremental depreciation expense during the six months ended June 30, 2020 as a result of the closure of the San Lorenzo, California corrugated products facility. We recognized $0.2 million of incremental depreciation expense during the six months ended June 30, 2019 as a result of shortening the useful lives of certain assets primarily related to the Wallula mill restructuring.

At June 30, 2020 and December 31, 2019, purchases of property, plant, and equipment included in accounts payable were $27.9 million and $26.8 million, respectively.