PROPERTY, PLANT AND EQUIPMENT

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



	December 31, 2017			December 25, 2016
	(In thousands)
Land	$	205,087		$	150,127
Buildings	1,681,610			1,487,353
Machinery and equipment	2,533,522			2,268,526
Autos and trucks	58,159			58,454
Construction-in-progress	187,094			255,086
Property, plant and equipment, gross	4,665,472			4,219,546
Accumulated depreciation	(2,570,325		)	(2,385,561		)
Property, plant and equipment, net	$	2,095,147		$	1,833,985

The Company recognized depreciation expense of $245.4 million, $210.5 million and $161.7 million during 2017, 2016 and 2015, respectively.

During 2017, the Company spent $339.9 million on capital projects and transferred $411.8 million of completed projects from construction-in-progress to depreciable assets. During 2016, the Company spent $341.0 million on capital projects and transferred $269.6 million of completed projects from construction-in-progress to depreciable assets. Capital expenditures were primarily incurred during 2017 to improve operational efficiencies, reduce costs and tailor processes to meet specific customer needs in order to further solidify competitive advantages for the Company.

During 2017, the Company sold certain PP&E for $4.5 million and recognized a gain of $0.5 million. PP&E sold in 2017 included a processing plant in Texas, a feed mill in Arkansas, poultry farms in Alabama and Texas, vacant land in Texas, a processing plant in Ireland, a hatchery in the U.K. and miscellaneous equipment. During 2016, the Company sold certain PP&E for $13.4 million and recognized a gain of $8.9 million. PP&E sold in 2016 included a processing plant in Louisiana, poultry farms in Mexico and Texas, vacant land in Alabama and Texas, an office building in Texas and miscellaneous equipment.

Management has committed to the sale of certain properties and related assets, including, but not limited to, a processing complex in Alabama 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 31, 2017, the Company reported assets held for sale totaling $0.7 million in Assets held for sale on its Consolidated and Combined Balance Sheets.

The Company tested the recoverability of its Alabama processing complex held for sale at various effective dates during 2017. The Company determined that the aggregate carrying amount of this asset group at June 25, 2017, was not recoverable over the remaining life of the primary asset in the group and recognized impairment costs of $3.5 million within its U.S. segment, which is reported in the line item Administrative restructuring charges on its Consolidated and Combined Statements of Income. The Company determined that the aggregate carrying amount at December 31, 2017 of this asset group was recoverable over the remaining life of the primary asset in the group.

The Company tested the recoverability of its Ireland processing facility held for sale at various effective dates during 2017. The Company determined that the aggregate carrying amount of this asset group at September 24, 2017, was not recoverable over the remaining life of the primary asset in the group and recognized impairment costs of $1.5 million within its U.K. segment, which is reported in the line item Administrative restructuring charges on its Consolidated and Combined Statements of Income. The Ireland processing facility was sold in December 2017.

The Company has closed or idled various processing complexes, processing plants, hatcheries, broiler farms, and feed mills throughout the U.S. segment. 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 31, 2017, the carrying amount of these idled assets was $48.6 million based on depreciable value of $166.7 million and accumulated depreciation of $118.1 million.

The Company has closed or idled various processing complexes, processing plants, hatcheries, and other miscellaneous assets, throughout the U.K. and Europe segment. 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 31, 2017, the carrying amount of these idled assets was $2.9 million based on depreciable value of $11.4 million and accumulated depreciation of $8.5 million.

At December 31, 2017, the Company assessed if events or changes in circumstances indicated that the aggregate carrying amount of its property, plant and equipment held for use might not be recoverable. There were no indicators present that required the Company to test the recoverability of the aggregate carrying amount of its property, plant and equipment held for use at that date.