Long-Lived Assets

3 Months Ended

Apr. 03, 2021

Property, Plant and Equipment [Abstract]

Long-Lived Assets

Long-Lived Assets

Property, plant and equipment is stated at cost. Costs associated with the repair and maintenance of the Company’s property, plant and equipment are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency or safety of the Company’s property, plant and equipment are capitalized and depreciated over the remaining useful life of the related asset. Depreciable property is depreciated over the estimated useful lives of the assets, using principally the straight-line method.

A summary of property, plant and equipment is shown below (in millions):

	April 3, 2021		December 31, 2020
Land	$	111.6	$	114.1
Buildings and improvements	866.5		880.7
Machinery and equipment	4,344.2		4,339.2
Construction in progress	306.7		311.1
Total property, plant and equipment	5,629.0		5,645.1
Less – accumulated depreciation	(2,947.9)		(2,908.9)
Property, plant and equipment, net	$	2,681.1	$	2,736.2

Depreciation expense was $124.3 million and $113.4 million in the three months ended April 3, 2021 and April 4, 2020.

The Company monitors its long-lived assets for impairment indicators on an ongoing basis in accordance with GAAP. If impairment indicators exist, the Company performs the required impairment analysis by comparing the undiscounted cash flows expected to be generated from the long-lived assets to the related net book values. If the net book value exceeds the undiscounted cash flows, an impairment loss is measured and recognized.

In the first three months of 2021 and 2020, the Company recognized asset impairment charges of $0.2 million and $10.4 million, respectively, in conjunction with its restructuring actions (Note 3, "Restructuring"). The Company will continue to assess the impact of significant industry and other events on the realization of its long-lived assets.