Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.22.2
Property, Plant and Equipment
6 Months Ended
Jun. 30, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, net

Note 5. Property, Plant and Equipment, net

Property, plant and equipment, net, consisted of the following:

 

 

 

 

June 30,

 

 

December 31,

 

(in thousands)

 

Estimated Useful Life (Years)

 

2022

 

 

2021

 

Land and improvements

 

20

 

$

92

 

 

$

92

 

Leasehold improvements

 

Shorter of useful life or lease term

 

 

28,036

 

 

 

27,845

 

Buildings

 

15-40

 

 

2,156

 

 

 

2,156

 

Machinery and equipment

 

5-20

 

 

100,977

 

 

 

97,923

 

Motor vehicles

 

7-10

 

 

921

 

 

 

912

 

Furniture and fixtures

 

7-10

 

 

443

 

 

 

420

 

Office equipment

 

3-10

 

 

3,509

 

 

 

3,368

 

Construction in progress

 

N/A

 

 

308,148

 

 

 

212,647

 

 

 

 

 

 

444,282

 

 

 

345,363

 

Accumulated depreciation and amortization

 

 

 

 

(35,397

)

 

 

(29,182

)

Property, plant and equipment, net

 

 

 

$

408,885

 

 

$

316,181

 

We reported depreciation and amortization expense (which included amortization of intangible assets) as follows:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Cost of revenue

 

$

2,289

 

 

$

1,951

 

 

$

4,517

 

 

$

3,790

 

Selling, general and administrative

 

 

163

 

 

 

177

 

 

 

323

 

 

 

273

 

Research and development

 

 

1,876

 

 

 

83

 

 

 

3,748

 

 

 

248

 

Total depreciation and amortization expense

 

$

4,328

 

 

$

2,211

 

 

$

8,588

 

 

$

4,311

 

Construction in progress consists primarily of the early stages of construction of our Greenfield facility in Bainbridge, Georgia and the build-out of our facility in Winchester, Kentucky, as noted in the table below.

 

 

June 30,
 2022

 

 

December 31,
 2021

 

Georgia

 

$

155,329

 

 

$

83,660

 

Kentucky

 

 

150,016

 

 

 

128,289

 

New York

 

 

2,803

 

 

 

698

 

 

 

$

308,148

 

 

$

212,647

 

We anticipate placing the Phase II expansion of our facility in Winchester, Kentucky in service during the quarter ending September 30, 2022. We do not have an expected in-service date for our Greenfield facility in Bainbridge, Georgia at this time, since that project is still in an early stage of completion.

Property, plant and equipment includes gross capitalized interest of $9.3 million and $5.7 million as of June 30, 2022 and December 31, 2021, respectively. For the three months ended June 30, 2022 and 2021, interest costs of $2.0 million and $0.05 million, respectively, were capitalized to property, plant and equipment. For the six months ended June 30, 2022 and 2021, interest costs of $3.6 million and $0.3 million, respectively, were capitalized to property, plant and equipment.