PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Sep. 29, 2019

Property, Plant and Equipment [Abstract]

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



	September 29, 2019			December 30, 2018
	(In thousands)
Land	$	195,746		$	196,769
Buildings	1,714,404			1,697,703
Machinery and equipment	2,660,556			2,618,213
Autos and trucks	62,596			59,195
Finance leases	1,435			—
Construction-in-progress	324,434			269,166
PP&E, gross	4,959,171			4,841,046
Accumulated depreciation and amortization	(2,748,047		)	(2,679,344		)
PP&E, net	$	2,211,124		$	2,161,702

The Company recognized tangible asset depreciation expense of $66.2 million and $64.4 million during the thirteen weeks ended September 29, 2019 and September 30, 2018, respectively. The Company recognized tangible asset depreciation expense of $193.4 million and $187.0 million during the thirty-nine weeks ended September 29, 2019 and September 30, 2018, respectively.

During the thirty-nine weeks ended September 29, 2019, Pilgrim's spent $258.7 million on capital projects and transferred $189.9 million of completed projects from construction-in-progress to depreciable assets. Capital expenditures were primarily incurred during the thirty-nine weeks ended September 29, 2019 to improve efficiencies and reduce costs. During the thirty-nine weeks ended September 30, 2018, the Company spent $231.9 million on capital projects and transferred $149.5 million of completed projects from construction-in-progress to depreciable assets.

During the thirteen and thirty-nine weeks ended September 29, 2019, the Company sold certain PP&E for $13.4 million and $15.2 million, respectively, and recognized net gains on these sales of $9.8 million and $9.5 million, respectively. PP&E sold in the thirty-nine weeks ended September 29, 2019 included broiler farms in Mexico, a breeder farm in Texas, vacant land in Minnesota and miscellaneous equipment. During the thirteen and thirty-nine weeks ended September 30, 2018, the Company sold certain PP&E for $1.5 million and $2.7 million, respectively, and recognized net gains on these sales of $0.7 million and $0.5 million, respectively. PP&E sold in the thirty-nine weeks ended September 30, 2018 included a processing plant in Alabama and miscellaneous equipment.

The Company has closed or idled various facilities in the U.S. and in the U.K. The Board of Directors has not determined if it would be in the best interest of the Company to divest any of these 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 September 29, 2019, the carrying amounts of these idled assets totaled $40.5 million based on depreciable value of $137.7 million and accumulated depreciation of $97.2 million.

At September 29, 2019, 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.