Property, Plant and Equipment

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 4 — Property, Plant and Equipment

Property, plant and equipment consists of the following (in thousands):

	December 31,
	2014			2013
Building and leasehold improvements	$	72,228		$	71,306
Laboratory equipment		26,975			26,621
Manufacturing equipment		25,212			23,699
Furniture, fixtures and other equipment		23,451			23,235
Depreciable property, plant and equipment at cost		147,866			144,861
Less: accumulated depreciation		(93,807	)		(84,148	)
Depreciable property, plant and equipment, net		54,059			60,713
Construction-in-progress		16,309			6,261
Property, plant and equipment, net	$	70,368		$	66,974

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, including manufacturing equipment supporting our Amikacin Inhale program at third-party contract manufacturing locations in the U.S. and Germany. Under the terms of our arrangement with these contract manufacturers, during the period the equipment is being constructed, we are obligated to pay for their costs incurred to date. As of December 31, 2014, we have recorded a total of $7.2 million in other current and other long-term liabilities related to our obligation to purchase this equipment, which is recorded in property, plant and equipment. After the assets are placed into service, this liability will be paid over approximately three years.

In July 2012, we consolidated our U.S.-based research activities into our existing San Francisco facility and ceased use of and plan to sell 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 in the year ended December 31, 2012.

Depreciation expense, including depreciation of assets acquired through capital leases, for the years ended December 31, 2014, 2013, and 2012 was $11.7 million, $13.0 million, and $13.8 million, respectively.