Long-Lived Assets

3 Months Ended

Apr. 01, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

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 1, 2023		December 31, 2022
Land	$	104.8	$	104.6
Buildings and improvements	876.5		868.6
Machinery and equipment	4,996.0		4,871.5
Construction in progress	352.7		378.0
Total property, plant and equipment	6,330.0		6,222.7
Less – accumulated depreciation	(3,489.1)		(3,368.7)
Property, plant and equipment, net	$	2,840.9	$	2,854.0

Depreciation expense was $131.3 million and $127.7 million in the three months ended April 1, 2023 and April 2, 2022, respectively.

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. The Company will continue to assess the impact of significant industry and other events on the realization of its long-lived assets.

In the first three months of 2023 and 2022, the Company recognized property, plant and equipment impairment charges of $0.1 million and $0.5 million, respectively, in conjunction with its restructuring actions (Note 4, "Restructuring"). In the first three months of 2023 and 2022, the Company recognized additional property, plant and equipment impairment charges of $2.2 million and $1.1 million, respectively. The impairment charges are included in cost of sales in the accompanying condensed consolidated statements of comprehensive income.

Definite-Lived Intangible Assets

In the first three months of 2023, the Company recognized an impairment charge of $0.9 million related to an intangible asset of its E-Systems segment resulting from a change in the intended use of such asset. The impairment charge is included in amortization of intangible assets in the accompanying condensed consolidated statement of comprehensive income for the three months ended April 1, 2023.