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Property, Plant and Equipment
12 Months Ended
Dec. 31, 2018
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,

 

 

 

2018

 

 

2017

 

Building and leasehold improvements

 

$

77,771

 

 

$

81,444

 

Laboratory equipment

 

 

33,806

 

 

 

31,214

 

Computers, furniture, and other

 

 

31,354

 

 

 

27,800

 

Manufacturing equipment

 

 

21,339

 

 

 

20,695

 

Depreciable property, plant and equipment at cost

 

 

164,270

 

 

 

161,153

 

Less: accumulated depreciation

 

 

(120,507

)

 

 

(115,090

)

Depreciable property, plant and equipment, net

 

 

43,763

 

 

 

46,063

 

Construction-in-progress

 

 

5,088

 

 

 

1,400

 

Property, plant and equipment, net

 

$

48,851

 

 

$

47,463

 

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.

Depreciation and amortization expenses on property, plant and equipment for the years ended December 31, 2018, 2017, and 2016 was $8.8 million, $12.6 million, and $13.2 million, respectively.

In November 2017, Bayer announced that the Phase 3 Amikacin Inhale clinical program did not meet its primary endpoint or key secondary endpoints and, in December 2017, Bayer terminated our related collaboration agreement. Under this collaboration, we were responsible for the development, manufacturing and supply of our proprietary nebulizer device included in the Amikacin product and had acquired specific manufacturing equipment for this purpose. As a result of the termination of the program, in the three months ended December 31, 2017, we expensed program specific manufacturing equipment with an original cost of $23.4 million and a net book value of $15.1 million. We completed the disposal of this equipment in the first quarter of 2018. In addition, in the three months ended December 31, 2017, we incurred approximately $0.9 million of other program termination costs related to our manufacturing obligations.