Property, Plant and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, plant and equipment consist of the following:



	December 31,
	2016			2015
	(In thousands)
Land	$	240,719		$	237,815
Land use rights	26,845			26,845
Buildings and improvements	1,362,007			1,010,201
Machinery and equipment	4,483,523			4,226,401
Software and computer equipment	205,969			197,266
Furniture, fixtures and other equipment	21,313			21,259
Construction in progress	87,037			352,607
Total property, plant and equipment	6,427,413			6,072,394
Less accumulated depreciation and amortization	(3,862,765		)	(3,493,377		)
Total property, plant and equipment, net	$	2,564,648		$	2,579,017

The following table summarizes our depreciation expense:



	For the Year Ended December 31,
	2016		2015		2014
	(In thousands)
Depreciation expense	$	552,989	$	492,458	$	463,540

In December 2016, we completed the initial phase of construction of K5 and transferred $325.8 million from construction in progress to building and improvements and machinery and equipment. We had $44.8 million and $312.1 million of costs for K5 in construction in progress as of December 31, 2016 and 2015, respectively.

As part of our plan to consolidate factory operations in Korea, we entered into an agreement in November 2016 to sell the land and buildings comprising our K1 factory for a sale price of ₩162.1 billion (approximately $135 million). We received 10% of the purchase price at signing and the balance is due at closing. The transaction is expected to close during the second quarter of 2017 at which time we expect to recognize a pre-tax gain of approximately $100 million.