PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment (“PP&E”), net consisted of the following:



	December 25, 2016			December 27, 2015
	(In thousands)
Land	$	112,132		$	105,165
Buildings	1,169,984			1,131,379
Machinery and equipment	1,789,550			1,657,573
Autos and trucks	50,964			53,408
Construction-in-progress	231,874			152,619
Property, plant and equipment, gross	3,354,504			3,100,144
Accumulated depreciation	(1,848,564		)	(1,747,615		)
Property, plant and equipment, net	$	1,505,940		$	1,352,529

The Company recognized depreciation expense of $167.8 million, $146.4 million and $136.4 million during 2016, 2015 and 2014, respectively.

During 2016, the Company spent $272.5 million on capital projects and transferred $207.1 million of completed projects from construction-in-progress to depreciable assets. During 2015, the Company spent $175.8 million on capital projects and transferred $153.5 million of completed projects from construction-in-progress to depreciable assets. Capital expenditures were primarily incurred during 2016 to improve efficiencies and reduce costs.

During 2016, the Company sold certain PP&E for $10.8 million and recognized a gain of $7.7 million. PP&E sold in 2016 included a processing plant in Louisiana, poultry farms in Mexico and Texas, an office building in Texas, vacant land in Alabama and Texas and miscellaneous equipment. During 2015, the Company sold certain PP&E for $14.6 million and recognized a gain of $10.4 million. PP&E sold in 2015 included broiler farms in Mexico, a rendering plant in Arkansas and miscellaneous equipment.

Management has committed to the sale of certain properties and related assets, including, but not limited to, a processing complex in Texas and other miscellaneous assets, which no longer fit into the operating plans of the Company. The Company is actively marketing these properties and related assets for immediate sale and believes a sale of each property can be consummated within the next 12 months. At December 25, 2016, the Company reported assets held for sale totaling $5.3 million in Assets held for sale on its Consolidated Balance Sheets. The Company tested the recoverability of its assets held for sale and determined that the aggregate carrying amount of the Texas processing complex asset group was no longer recoverable over the remaining life of the primary asset in that asset group. The Company recognized impairment loss of $0.8 million in 2016 that was reported as Administrative restructuring charges on the Consolidated Statement of Income.

The Company has closed or idled various processing complexes, processing plants, hatcheries, broiler farms, and feed mills throughout the U.S. Neither the Board of Directors nor JBS has determined if it would be in the best interest of the Company to divest any of these closed or idled assets. Management is therefore not certain that it can or will divest any of these assets within one year, is not actively marketing these assets and, accordingly, has not classified them as assets held for sale. The Company continues to depreciate these assets. At December 25, 2016, the carrying amount of these idled assets was $61.2 million based on depreciable value of $193.1 million and accumulated depreciation of $131.9 million.

The Company tested the recoverability of its long-lived assets held for use during the thirteen weeks ended December 25, 2016 by comparing the book value of its invested capital, exclusive of assets held for sale, with the undiscounted cash flows expected to result from the use and eventual disposition of its long-lived assets held for use. The Company determined that the carrying amount of its long-lived assets held for use is recoverable over the remaining life of the primary asset in the group, and the long-lived assets for use pass the Step 1 recoverability test of ASC 360-10-35, Impairment or Disposal of Long-Lived Assets.