Property and Equipment

12 Months Ended

Dec. 31, 2012

Note 4 — Property and Equipment

Property and equipment consist of the following (in thousands):


	December 31,
	2012			2011
Building and leasehold improvements	$	72,180		$	72,473
Laboratory equipment		27,145			26,290
Manufacturing equipment		20,877			19,550
Furniture, fixtures and other equipment		21,914			20,750

Depreciable property and equipment at cost		142,116			139,063
Less: accumulated depreciation		(72,666	)		(62,237	)

Depreciable property and equipment, net		69,450			76,826
Construction-in-progress		2,765			1,750

Property and equipment, net	$	72,215		$	78,576

Building and leasehold improvements include our manufacturing, research and development and administrative facilities and the related improvements to these facilities. Laboratory and manufacturing equipment include assets that support both our manufacturing and research and development efforts. Construction-in-progress includes assets being built to enhance our manufacturing and research and development efforts. Property and equipment includes certain assets acquired through capital leases (See Note 6).

In July 2012, we consolidated our U.S.-based research activities into our existing San Francisco facility and ceased use of one of our buildings located in Huntsville, Alabama that was dedicated to research activities. The announcement of this consolidation plan in March 2012 triggered the recognition of a $1.7 million impairment charge relating to these assets (see Note 11).

Depreciation expense, including depreciation of assets acquired through capital leases, for the years ended December 31, 2012, 2011, and 2010 was $13.8 million, $15.0 million, and $14.8 million, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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