Property, Plant and Equipment

3 Months Ended

Mar. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment consist of the following:



	March 31, 2013			December 31, 2012
	(In thousands)
Land	$	103,992		$	106,338
Land use rights	19,945			19,945
Buildings and improvements	876,341			904,919
Machinery and equipment	3,387,447			3,332,855
Software and computer equipment	188,287			191,132
Furniture, fixtures and other equipment	17,312			19,194
Construction in progress	34,621			24,670
	4,627,945			4,599,053
Less accumulated depreciation and amortization	(2,802,784		)	(2,779,084		)
Total property, plant and equipment, net	$	1,825,161		$	1,819,969

In January 2013, we sold office space and land located in Chandler, Arizona for $22.8 million, net of selling costs of $1.2 million.

The following table presents depreciation expense as included in the Consolidated Statements of Income:



	For the Three Months Ended March 31,
	2013		2012
	(In thousands)
Cost of sales	$	89,167	$	80,097
Selling, general and administrative	4,136		5,107
Research and development	2,995		2,080
Total depreciation expense	$	96,298	$	87,284

The following table reconciles our activity related to property, plant and equipment additions as presented on the Consolidated Balance Sheets to purchases of property, plant and equipment as presented on the Condensed Consolidated Statements of Cash Flows:



	For the Three Months Ended March 31,
	2013			2012
	(In thousands)
Property, plant and equipment additions	$	124,270		$	123,935
Net change in related accounts payable and deposits	(11,727		)	(2,848		)
Purchases of property, plant and equipment	$	112,543		$	121,087

In February 2013, we entered into an agreement for the purchase of land for a factory and research and development center in Korea. The agreement to purchase the land for the facility is subject to our compliance with various construction, investment, hiring, regulatory and other requirements. We made a non-refundable deposit of ₩10.9 billion (approximately $10 million) at signing with two remaining payments of ₩43.4 billion (approximately $39 million) and ₩54.2 billion (approximately $49 million) due in August 2013 and November 2013, respectively. As of March 31, 2013, the deposit is recorded in other assets on our Consolidated Balance Sheets.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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