PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Sep. 27, 2020

Property, Plant and Equipment [Abstract]

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


	September 27, 2020		December 29, 2019
	(In thousands)
Land	$	250,438	$	222,076
Buildings	1,913,680		1,754,219
Machinery and equipment	3,087,897		3,139,748
Autos and trucks	72,419		64,122
Finance leases	2,182		2,182
Construction-in-progress	248,984		229,015
PP&E, gross	5,575,600		5,411,362
Accumulated depreciation	(2,989,782)		(2,819,301)
PP&E, net	$	2,585,818	$	2,592,061

The Company recognized depreciation expense of $77.7 million and $66.2 million during the three months ended September 27, 2020 and September 29, 2019, respectively. The Company recognized depreciation expense of $231.6 million and $193.4 million during the nine months ended September 27, 2020 and September 29, 2019, respectively.

During the nine months ended September 27, 2020, Pilgrim's spent $242.6 million on capital projects and transferred $190.1 million of completed projects from construction-in-progress to depreciable assets. Capital expenditures were primarily incurred during the nine months ended September 27, 2020 to improve efficiencies and reduce costs. During the nine months ended September 29, 2019, the Company spent $258.7 million on capital projects and transferred $189.9 million of completed projects from construction-in-progress to depreciable assets.

During the three and nine months ended September 27, 2020, the Company sold certain PP&E for $11.8 million and $21.7 million, respectively, in cash and recognized net gains on these sales of $6.4 million and $8.0 million, respectively. PP&E sold during the nine months ended September 27, 2020 consisted of broiler farms and related machinery in Mexico and other miscellaneous equipment. During the three and nine months ended September 29, 2019, the Company sold miscellaneous

equipment for cash of $13.4 million and $15.2 million, respectively, and recognized net gains on these sales of $9.8 million and $9.5 million, respectively.

The Company has closed or idled various facilities in the U.S. and in 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 September 27, 2020, the carrying amounts of these idled assets totaled $41.9 million based on depreciable value of $185.0 million and accumulated depreciation of $143.1 million.

As of September 27, 2020, 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.