Property, Plant and Equipment Property, Plant and Equipment

3 Months Ended

Mar. 31, 2019

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 $1,841.0 million and $1,797.4 million as of March 31, 2019 and December 31, 2018, respectively. For the three months ended March 31, 2019, depreciation expense totaled $52.9 million, compared to $65.0 million in the prior year comparative period.

Solothurn, Switzerland Facility

We are building a large-scale biologics manufacturing facility in Solothurn, Switzerland. We expect this facility to be operational by the end of 2020. Upon completion, the facility will include 393,000 square feet related to a large-scale biologics manufacturing facility, 290,000 square feet of warehouse, utilities and support space and 51,000 square feet of administrative space. As of March 31, 2019 and December 31, 2018, we had approximately $1.7 billion and $1.6 billion, respectively, capitalized as construction in progress related to this facility. As of March 31, 2019, we had contractual commitments of approximately $92.0 million outstanding related to the construction of this facility.

Proposed Divestiture of Hillerød, Denmark Manufacturing Operations

In March 2019 we entered into a share purchase agreement with FUJIFILM under which FUJIFILM will acquire all of the outstanding shares of our subsidiary that owns our biologics manufacturing operations in Hillerød, Denmark. As a result, $629.7 million of property, plant and equipment, which is primarily comprised of $312.8 million for buildings and $286.5 million for machinery and equipment, was reclassified to assets held for sale in our condensed consolidated balance sheets as of March 31, 2019. Additionally, we ceased recording depreciation on these assets as depreciation is not recorded during the period in which a long-lived asset or disposal group is classified as held for sale, even if the asset or disposal group continues to generate revenue during the period. For additional information on the proposed divestiture of our Hillerød, Denmark manufacturing operations, please read Note 3, Divestitures, to these condensed consolidated financial statements.