Property, Plant and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Property, plant and equipment are recorded at historical cost, net of accumulated depreciation. Components of property, plant and equipment, net are summarized as follows:



	As of December 31,
(In millions)	2015			2014
Land	$	74.7		$	56.9
Buildings	1,035.6			947.7
Leasehold improvements	166.6			155.5
Machinery and equipment	1,079.6			1,011.3
Computer software and hardware	647.1			547.8
Furniture and fixtures	72.9			64.3
Construction in progress	441.2			168.6
Total cost	3,517.7			2,952.1
Less: accumulated depreciation	(1,330.1		)	(1,186.4		)
Total property, plant and equipment, net	$	2,187.6		$	1,765.7

Depreciation expense totaled $217.9 million, $198.4 million and $187.8 million for 2015, 2014 and 2013, respectively.

For 2015, 2014 and 2013, we capitalized interest costs related to construction in progress totaling approximately $10.4 million, $6.4 million and $7.8 million, respectively.

Research Triangle Park Facility Purchase

On August 24, 2015, we purchased from Eisai, Inc. (Eisai) its drug product manufacturing facility and supporting infrastructure in Research Triangle Park (RTP), North Carolina for $104.8 million. The purchase price consisted of the following:



(In millions)
Buildings	$	58.6
Machinery and equipment	25.9
Land	20.3
Total purchase price	$	104.8

On August 24, 2015, we also amended our existing 10 year lease related to Eisai's oral solid dose products manufacturing facility in RTP, North Carolina where we manufacture our and Eisai's oral solid dose products. As amended, the lease provides for a 3 year term and our agreement to purchase the facility upon expiration of the lease term and Eisai's completion of certain activities. Accordingly, we recorded the assets along with a corresponding financing obligation on our consolidated balance sheet for $20.3 million, the net present value of the future minimum lease payments. The assets were recorded as a component of buildings and machinery and equipment. We expect to complete the purchase of the oral solid products manufacturing facility at the end of the lease term in the third quarter of 2018.

Solothurn, Switzerland Facility

On December 1, 2015, we purchased land in Solothurn, Switzerland for 64.4 million Swiss Francs (approximately $62.5 million). We plan to build a biologics manufacturing facility on this land in the Commune of Luterbach over the next several years. As of December 31, 2015, we have approximately $99.0 million capitalized in construction in progress related to the construction of this facility.

Weston Exit Costs

As a result of our decision to relocate our corporate headquarters to Cambridge, Massachusetts, we vacated part of our Weston, Massachusetts facility in the fourth quarter of 2013. We incurred a charge of $27.2 million in connection with this move. This charge represented our remaining lease obligation for the vacated portion of our Weston, Massachusetts facility, net of sublease income expected to be received. The term of our sublease for the vacated portion of our Weston, Massachusetts facility started in January 2014 and will continue through the remaining term of our lease agreement.