PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Apr. 03, 2021

Property, Plant and Equipment [Abstract]

Property and equipment consisted of the following:


(In thousands)	April 3, 2021		March 28, 2020
Land	$	5,116	$	4,779
Building and building improvements	107,322		101,296
Plant equipment and machinery	216,751		242,286
Office equipment and information technology	115,810		113,600
Haemonetics equipment	372,259		370,473
Total	817,258		832,434
Less: accumulated depreciation and amortization	(599,699)		(579,035)
Property, plant and equipment, net	$	217,559	$	253,399

Depreciation expense was $43.1 million, $76.6 million and $76.8 million in fiscal 2021, 2020 and 2019, respectively.

In early April 2021, the Company was informed by CSL of its intent not to renew its supply agreement for the use of PCS2 plasma collection system devices and the purchase of disposable plasmapheresis kits in the U.S. following the expiration of the current term in June 2022. As a result, the Company incurred a one-time impairment of $20.9 million related to disposables manufacturing equipment previously recorded in construction in process which will not be placed into service as a result of the supply agreement expiration. The impairment charge was included in cost of goods sold on the consolidated statements of income and impacted the Plasma reporting segment.

During the fiscal 2020, the Company recognized a pre-tax impairment charge of $48.7 million relating to the asset transfer between the Company and CSL on May 13, 2019. This impairment is related to the carrying balances of the property, plant and equipment exceeding the consideration received under the terms of the agreement. The charge will not result in any future cash expenditures. For additional information regarding the transaction, refer to Note 5 - Divestitures. The Company also impaired an additional $1.9 million of property, plant and equipment as a result of the Company's corporate headquarter move and a review of underperforming assets, resulting in total impairment charges of $50.6 million during fiscal 2020. Substantially all of these impairments were included within selling, general and administrative costs on the consolidated statements of income and primarily impacted the Plasma reporting segment.

During fiscal 2020, the Company sold $7.8 million of real estate and other assets associated with the Braintree corporate headquarters for net cash proceeds of $15.0 million and non-cash consideration of $0.9 million which resulted in a net gain of $8.1 million. Additionally, in connection with the lease for office space in Boston, MA which serves as the new corporate headquarters, the Company received a lease incentive in the form of property, plant and equipment totaling $5.6 million which was recorded during fiscal 2020. Refer to Note 12, Leases, for additional information regarding this lease.

During fiscal 2019, the Company recorded impairment charges of $21.2 million, which consisted of $19.8 million of charges related to the discontinued use of the HDC filter media manufacturing line and $1.4 million of charges related to non-core and underperforming assets. These impairments were included within cost of goods sold on the consolidated statements of income and impacted the Blood Center reporting segment.

Additionally, in the second quarter of fiscal 2019, the Company changed the estimated useful lives of PCS®2 devices included within Haemonetics Equipment, as these will be replaced by NexSys PCS® devices. During fiscal 2020 and 2019, the Company incurred $18.1 million and $18.0 million, respectively, of accelerated depreciation expense related to this change in estimate. As of March 28, 2020, the majority of PCS2 devices were fully depreciated.