Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

14. Property, Plant and Equipment

The table below sets forth the components of property, plant and equipment as of December 31, 2019 and 2018:

(in thousands)	2019	2018	Estimated useful life
Land and land improvements	$14,168	$14,287	25 years for improvements
Buildings	227,875	245,805	15 to 40 years
Right of use assets	16,686	—	10 to 15 years
Machinery and equipment	1,020,348	989,925	5 to 15 years
Furniture and fixtures	8,126	8,091	5 years
Computer and other equipment	18,808	16,473	3 to 10 years
Software	60,995	60,182	5 to 8 years
Capital expenditures in progress	45,588	46,749
Property, plant and equipment, gross	1,412,594	1,381,512
Accumulated depreciation and amortization	(946,132)	(919,457)
Property, plant and equipment, net	$466,462	$462,055

Depreciation expense was $62.1 million in 2019, $68.8 million in 2018, and $61.5 million in 2017. Software amortization is recorded in Selling, general, and administrative expense and was $2.4 million in 2019, $3.2 million in 2018, and $3.6 million in 2017.

Capital expenditures, including purchased software, were $68.0 million in 2019, $82.9 million in 2018, and $87.6 million in 2017. Unamortized software cost was $5.3 million in 2019, $6.9 million and $7.6 million as of December 31, 2018 and 2017, respectively. Expenditures for maintenance and repairs are charged to income as incurred and amounted to $19.8 million in 2019, $19.4 million in 2018, and $19.1 million in 2017.

In 2019, the Company acquired CirComp GmbH, which resulted in an increase of $10.6 million to Property, plant and equipment, of which $5.7 million is a finance lease included in the above table as a Right of use asset as of December 31, 2019.

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ALBANY INTERNATIONAL CORP.

Notes to Consolidated Financial Statements

14. Property, Plant and Equipment — (continued)

The capitalized value of our primary manufacturing facility in Salt Lake City, Utah (SLC lease), which was accounted for as a build-to-suit lease with a failed sale-leaseback, was included in Buildings in the above table during 2018. AEC finalized a modification to the lease during 2018, which included additional manufacturing space, extended the minimum lease period until December 31, 2029 and resulted in an increase of $12.7 million to Property, plant and equipment, net (see discussion of Finance obligation in Note 17). As described in Note 20, effective January 1, 2019, we adopted the provisions of ASC 842, Leases, using the effective date (or modified retrospective) approach for transition, which resulted in the derecognition and reassessment of assets and liabilities related to our SLC lease. We determined that the original leased space met the criteria for recording as a finance lease, and is included as a Right of use asset in the above table. The incremental expansion space added in the modification met the criteria for recording as an Operating lease and is included in Other assets.