Property, Plant, and Equipment

3 Months Ended

Mar. 31, 2021

Property Plant And Equipment [Abstract]

8.	Property, Plant, and Equipment

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

	March 31,			December 31,
	2021			2020
Land and land improvements	$	185.5		$	179.6
Buildings		874.8			858.5
Machinery and equipment		5,879.9			5,826.6
Construction in progress		354.3			360.0
Other		88.6			88.8
Property, plant and equipment, at cost		7,383.1			7,313.5
Less accumulated depreciation		(4,170.6	)		(4,120.1	)
Property, plant, and equipment, net	$	3,212.5		$	3,193.4

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 March 31, 2021 and 2020 was $90.0 million and $89.8 million, respectively. We recognized $0.5 million of incremental depreciation expense during the three months ended March 31, 2021 as a result of the Jackson, Alabama mill conversion. We did not recognize any incremental depreciation expense during the three months ended March 31, 2020.

At March 31, 2021 and December 31, 2020, purchases of property, plant, and equipment included in accounts payable were $47.8 million and $20.4 million, respectively.