10. PROPERTY, PLANT, AND EQUIPMENT

The following table sets forth the major classifications of our property, plant, and equipment and accumulated depreciation of our continuing operations:



	June 30,				December 31,
In thousands	2018		2017		2017
Utility plant in service	$	3,035,089	$	2,901,791	$	2,975,217
Utility construction work in progress	192,496		127,383		159,924
Less: Accumulated depreciation	966,766		925,589		942,879
Utility plant, net	2,260,819		2,103,585		2,192,262
Non-utility plant in service	65,743		63,964		65,372
Non-utility construction work in progress	5,528		4,974		4,122
Less: Accumulated depreciation	18,232		16,969		17,598
Non-utility plant, net ⁽¹⁾	53,039		51,969		51,896
Total property, plant, and equipment	$	2,313,858	$	2,155,554	$	2,244,158

Capital expenditures in accrued liabilities ⁽²⁾	$	22,112	$	42,574	$	34,761


⁽¹⁾	Previously reported non-utility balances were restated due to the assets and liabilities associated with Gill Ranch now being classified as discontinued operations assets and liabilities on the consolidated balance sheets. See Note 15 for further discussion.

⁽²⁾

Previously reported capital expenditures in accrued liabilities were restated due to the assets and liabilities associated with Gill Ranch now being classified as discontinued operations assets and liabilities on the consolidated balance sheets. Capital expenditures in accrued liabilities related to Gill Ranch were approximately $0.3 million, $0.1 million, and $0.2 million as of June 30, 2018, June 30, 2017, and December 31, 2017, respectively.

Build-to-suit Assets

In October 2017, we entered into a 20-year operating lease agreement commencing in 2020 for our new headquarters location in Portland, Oregon. Our existing headquarters lease expires in 2020. Our search and evaluation process focused on seismic preparedness, safety, reliability, least cost to our customers, and a continued commitment to our employees and the communities we serve. The lease was analyzed in consideration of build-to-suit lease accounting guidance, and we concluded that we are the accounting owner of the asset during construction. As a result, we have recognized $7.6 million and $0.5 million in property, plant and equipment and an obligation in other non-current liabilities for the same amount in our consolidated balance sheet at June 30, 2018 and December 31, 2017, respectively. In 2019, pursuant to the new lease standard issued by the FASB, we expect to de-recognize the associated build-to-suit asset and liability. See Note 14 in our 2017 Form 10-K.