Property, Plant and Equipment

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

9. Property, Plant and Equipment

Property, plant and equipment consist of the following:



	September 30, 2013			December 31, 2012
	(In thousands)
Land	$	103,992		$	106,338
Land use rights	26,845			19,945
Buildings and improvements	897,495			904,919
Machinery and equipment	3,590,226			3,332,855
Software and computer equipment	194,535			191,132
Furniture, fixtures and other equipment	17,459			19,194
Construction in progress	34,901			24,670
	4,865,453			4,599,053
Less accumulated depreciation and amortization	(2,918,005		)	(2,779,084		)
Total property, plant and equipment, net	$	1,947,448		$	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 September 30,				For the Nine Months Ended September 30,
	2013		2012		2013		2012
	(In thousands)
Cost of sales	$	97,648	$	85,172	$	277,621	$	247,160
Selling, general and administrative	3,672		4,670		11,667		15,066
Research and development	3,914		2,889		10,023		7,666
Total depreciation expense	$	105,234	$	92,731	$	299,311	$	269,892

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 Nine Months Ended September 30,
	2013		2012
	(In thousands)
Property, plant and equipment additions	$	380,179	$	446,767
Net change in related accounts payable and deposits	21,825		(66,423		)
Purchases of property, plant and equipment	$	402,004	$	380,344

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 ($10 million) at signing, a deposit of ₩43.4 billion ($39 million) in the three months ended September 30, 2013 and have one remaining payment of ₩54.2 billion (approximately $51 million) due during the three months ending December 31, 2013. As of September 30, 2013, the deposits are 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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