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Property, Plant and Equipment
12 Months Ended
Dec. 31, 2017
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,

 

 

 

2017

 

 

2016

 

Building and leasehold improvements

 

$

81,444

 

 

$

75,137

 

Laboratory equipment

 

 

31,214

 

 

 

27,424

 

Furniture, fixtures and other equipment

 

 

27,800

 

 

 

26,590

 

Manufacturing equipment

 

 

20,695

 

 

 

44,237

 

Depreciable property, plant and equipment at cost

 

 

161,153

 

 

 

173,388

 

Less: accumulated depreciation and amortization

 

 

(115,090

)

 

 

(111,243

)

Depreciable property, plant and equipment, net

 

 

46,063

 

 

 

62,145

 

Construction-in-progress

 

 

1,400

 

 

 

3,456

 

Property, plant and equipment, net

 

$

47,463

 

 

$

65,601

 

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, including depreciation of assets acquired through capital leases, for the years ended December 31, 2017, 2016, and 2015 was $12.6 million, $13.2 million, and $11.4 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 wrote off program specific manufacturing equipment with an original cost of $23.4 million and a net book value of $15.1 million. We expect to complete 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.