PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 29, 2019

Property, Plant and Equipment [Abstract]

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



	December 29, 2019			December 30, 2018
	(In thousands)
Land	$	222,076		$	196,769
Buildings	1,754,219			1,697,703
Machinery and equipment	3,139,748			2,618,213
Autos and trucks	64,122			59,195
Finance leases	2,182			—
Construction-in-progress	229,015			269,166
PP&E, gross	5,411,362			4,841,046
Accumulated depreciation	(2,819,301		)	(2,679,344		)
PP&E, net	$	2,592,061		$	2,161,702

The Company recognized depreciation expense of $264.3 million, $248.3 million and $245.4 million during 2019, 2018 and 2017, respectively.

During 2019, the Company spent $348.1 million on capital projects and transferred $368.2 million of completed projects from construction-in-progress to depreciable assets. Capital expenditures were primarily incurred during 2019 to improve operational efficiencies and reduce costs. During 2018, the Company spent $348.7 million on capital projects and transferred $246.5 million of completed projects from construction-in-progress to depreciable assets.

During 2019, the Company sold certain PP&E for $15.8 million and recognized a gain of $10.9 million. PP&E sold in 2019 included broiler farms in Mexico, a breeder farm in Texas, vacant land in Minnesota and miscellaneous equipment. During

2018, the Company sold certain PP&E for $9.8 million and recognized a gain of $1.9 million. PP&E sold in 2018 included processing plants in Alabama and Minnesota, a residential building in Georgia, vacant land in Georgia and North Carolina, and miscellaneous equipment.

The Company has closed or idled various facilities in the U.S. and the U.K. 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 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. As of December 29, 2019, the carrying amount of these idled assets was $43.4 million based on depreciable value of $226.2 million and accumulated depreciation of $182.8 million.

As of December 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.