PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 26, 2021

Property, Plant and Equipment [Abstract]

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


	December 26, 2021		December 27, 2020
	(In thousands)
Land	$	260,079	$	255,171
Buildings	2,043,034		1,983,823
Machinery and equipment	3,594,482		3,230,199
Autos and trucks	76,710		73,647
Finance lease assets	5,710		2,182
Construction-in-progress	229,837		199,161
PP&E, gross	6,209,852		5,744,183
Accumulated depreciation	(3,292,046)		(3,086,692)
PP&E, net	$	2,917,806	$	2,657,491

The Company recognized depreciation expense of $354.4 million, $314.4 million and $264.3 million during 2021, 2020 and 2019, respectively.

During 2021, the Company spent $381.7 million on capital projects and transferred $421.9 million of completed projects from construction-in-progress to depreciable assets. Capital expenditures were primarily incurred during 2021 to improve operational efficiencies and reduce costs. During 2020, the Company spent $354.8 million on capital projects and transferred $423.7 million of completed projects from construction-in-progress to depreciable assets.

During 2021, the Company sold certain PP&E for $24.7 million and recognized a gain of $1.5 million. PP&E sold in 2021 consisted of a broiler farm in Mexico, two processing plants within the U.K. and other miscellaneous equipment. During 2020, the Company sold certain PP&E for $32.0 million and recognized a gain of $13.8 million. PP&E sold in 2020 consisted of broiler farms in Mexico, vacant land in Alabama and other miscellaneous equipment.

The Company has closed or idled various facilities in the U.S. and 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. As of December 26, 2021, the carrying amount of these idled assets was $40.2 million based on depreciable value of $205.5 million and accumulated depreciation of $165.3 million. During 2021, the Company recognized an impairment loss of $3.8 million incurred as a result of a tornado in Mayfield, Kentucky in December 2021 that significantly damaged two hatcheries and a feed mill.

As of December 26, 2021, 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.