Property, Plant and Equipment

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

4. Property, Plant and Equipment

Property, plant and equipment as of March 31, 2019 and December 31, 2018 are comprised of the following (in thousands):

	March 31, 2019			December 31, 2018
Buildings and related structures	$	69,539		$	70,665
Machinery and equipment		322,352			323,325
Finance lease right-of-use assets		2,500			—
Others		47,794			44,724
		442,185			438,714
Less: accumulated depreciation		(255,599	)		(251,962	)
Land		15,152			15,419
Property, plant and equipment, net	$	201,738		$	202,171

Aggregate depreciation expenses totaled $8,087 thousand and $7,757 thousand for the three months ended March 31, 2019 and 2018, respectively.

As of June 29, 2018, the Company’s Korean subsidiary entered into an arrangement whereby it acquired a water treatment facility to support its fab in Gumi, Korea from SK Hynix for $4,172 thousand, and sold it for $4,172 thousand to a third party management company that the Company has engaged to run the facility for a 10-year term. This arrangement is accounted for as a financing due to the Company’s Korean subsidiary’s continuing involvement with the facility. As a result, on an acquisition date, the Company recorded the water treatment facility of $4,172 thousand as property, plant and equipment, net, which is depreciated over its estimated useful life. The Company also recorded the related liabilities of $553 thousand as other current liabilities and $3,619 thousand as other non-current liabilities, which relates to the financing and service portion of the arrangement and is amortized using the effective interest method over the contract period.