Property, Plant and Equipment

12 Months Ended

Dec. 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. Components of property, plant and equipment, net are summarized as follows:

	As of December 31,
(In millions)	2019			2018
Land	$	118.1		$	144.5
Buildings	835.0			1,282.8
Leasehold improvements	99.5			94.4
Machinery and equipment	844.5			1,258.1
Computer software and hardware	798.4			798.7
Furniture and fixtures	58.3			61.6
Construction in progress	2,084.4			1,758.5
Total cost	4,838.2			5,398.6
Less: accumulated depreciation	(1,590.9		)	(1,797.4		)
Total property, plant and equipment, net	$	3,247.3		$	3,601.2

Depreciation expense totaled $190.6 million, $269.4 million and $266.3 million for 2019, 2018 and 2017, respectively.

For 2019, 2018 and 2017 we capitalized interest costs related to construction in progress totaling approximately $68.8 million, $54.0 million and $30.7 million, respectively. The increase in capitalized interest costs is primarily due to the construction of our large-scale biologics manufacturing facility in Solothurn, Switzerland, as discussed below.

Solothurn, Switzerland Manufacturing Facility

In order to support our drug development pipeline, we are building a large-scale biologics manufacturing facility in Solothurn, Switzerland. We expect this facility to be partially 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 December 31, 2019 and 2018, we had approximately $1.9 billion and $1.6 billion, respectively, capitalized as construction in progress related to this facility.

Divestiture of Hillerød, Denmark Manufacturing Operations

In August 2019 we completed the sale of all of the outstanding shares of our subsidiary that owned our biologics manufacturing operations in Hillerød, Denmark to FUJIFILM. This transaction included $631.5 million of property, plant and equipment, which was primarily comprised of $312.5 million for buildings and $287.3 million for machinery and equipment. For additional information on the divestiture of our Hillerød, Denmark manufacturing operations, please read Note 3, Divestitures, to these consolidated financial statements.