Property, Plant and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]


Note 11:			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)	2023		2022
Land	$	202.4	$	202.4
Buildings	1,601.3		1,592.9
Leasehold improvements	135.7		107.7
Machinery and equipment	1,703.8		1,611.5
Computer software and hardware	1,032.1		999.9
Furniture and fixtures	61.5		61.1
Construction in progress	975.4		888.8
Total cost	5,712.2		5,464.3
Less: accumulated depreciation	(2,402.5)		(2,165.7)
Total property, plant and equipment, net	$	3,309.7	$	3,298.6

Depreciation expense totaled $254.2 million, $272.4 million and $235.3 million for the years ended December 31, 2023, 2022 and 2021, respectively.

For the years ended December 31, 2023, 2022 and 2021, we capitalized interest costs related to construction in progress totaling approximately $21.7 million, $17.1 million and $36.3 million, respectively.

Solothurn, Switzerland Manufacturing Facility

In order to support our future growth and drug development pipeline, we built a large-scale biologics manufacturing facility in Solothurn, Switzerland. This facility includes 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, 2023 and 2022, we had approximately $728.8 million and $711.1 million, respectively, capitalized as construction in progress related to this facility. In the second quarter of 2021 a portion of this facility (the first manufacturing suite) received a GMP multi-product license from the SWISSMEDIC, resulting in approximately $1.2 billion of fixed assets being placed into service during the second quarter of 2021. The second manufacturing suite became operational in January 2024, resulting in approximately $710.7 million of fixed assets being placed into service during the first quarter of 2024. Solothurn has been approved for the manufacture of ADUHELM and LEQEMBI by the FDA.

125 Broadway Building Sale

In September 2022 we completed the sale of our building and land parcel located at 125 Broadway for an aggregate sales price of approximately $603.0 million, which is inclusive of a $10.8 million tenant allowance. This sale resulted in a pre-tax gain on sale of approximately $503.7 million, net of transaction costs, which is reflected within gain on sale of building in our consolidated statements of income for the year ended December 31, 2022. This transaction included approximately $79.2 million of property, plant and equipment, net, which comprised of approximately $72.6 million for buildings, approximately $1.6 million for land and approximately $5.0 million for machinery and equipment.