Property, Plant and Equipment Property, Plant and Equipment

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are recorded at historical cost, net of accumulated depreciation. Accumulated depreciation on property, plant and equipment was $1,471.0 million and $1,330.1 million as of June 30, 2016 and December 31, 2015, respectively.

Solothurn, Switzerland Facility

On December 1, 2015, we purchased land in Solothurn, Switzerland for 64.4 million Swiss Francs (approximately $62.5 million). We are building a biologics manufacturing facility on this land in the Commune of Luterbach over the next several years. As of June 30, 2016 and December 31, 2015, we had approximately $247.8 million and $99.0 million, respectively, capitalized as construction in progress related to the construction of this facility.

Cambridge, MA Manufacturing Facility

In June 2016, as a result of an evaluation of our manufacturing capabilities and capacity needs based on current and expected future demand, we determined that we intend to cease manufacturing in Cambridge, MA and vacate our 67,000 square foot small-scale biologics manufacturing facility in Cambridge, MA and 46,000 square foot warehouse space in Somerville, MA by the end of 2016.

We are currently considering alternatives for the facility, which may include a sale of our rights to the facility and related assets. In the event we are unsuccessful with a sale, we will close the facility by December 31, 2016.

As of June 30, 2016, the carrying value of associated assets totaled approximately $43.0 million and our remaining lease obligation related to these facilities totaled $26.3 million.

An impairment assessment as of June 30, 2016 was performed related to the assets, which resulted in no impairments.

The anticipated departure from these facilities has shortened the expected useful lives of certain leasehold improvements and other assets at these facilities. As a result, we recorded additional depreciation expense to reflect the assets' new shorter useful lives. As of June 30, 2016, we recognized approximately $15.8 million of this additional depreciation, which was recorded as cost of sales in our condensed consolidated statements of income.