Property, Plant, and Equipment, Net

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property, plant, and equipment, net were as follows:


	December 31,
(In thousands)	2023		2022
Buildings	$	17,806	$	18,291
Computer equipment	9,679		9,344
Furniture and fixtures	3,598		3,529
Leasehold and building improvements	33,049		39,761
Machinery and equipment	82,302		96,947
Software	28,074		23,607
Tooling	30,724		31,898
	205,232		223,377
Accumulated depreciation	(163,301)		(170,474)
	41,931		52,903
Construction in progress	2,688		9,888
Total property, plant, and equipment, net	$	44,619	$	62,791

Depreciation expense was $18.0 million, $19.9 million and $22.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.

During the three months ended September 30, 2023, as part of our manufacturing footprint optimization efforts, we made the decision to close our southwestern China factory and manufacturing operations were stopped in September 2023. We are also planning to downsize and streamline the Mexico operations by moving to a smaller, more efficient facility. As a result of these decisions, we recorded impairment charges of $7.7 million, of which $7.6 million and $0.1 million is recorded in cost of sales and selling, general and administrative expenses, respectively. In addition, during the year ended December 31, 2023, we recorded an additional $0.2 million of impairment charges, recorded in cost of sales, relating to the underutilization of property, plant and equipment in our other PRC-based factories. During the year ended December 31, 2022, we incurred $2.9 million in impairment charges, recorded in cost of sales, relating to the underutilization of certain property, plant and equipment in our Mexico factory. During the year ended December 31, 2021, we incurred $3.3 million in impairment charges, recorded in cost of sales, relating to the underutilization of property, plant and equipment in our PRC-based factories, as a result of our long-term factory planning strategy of reducing our concentration risk in that region.

Construction in progress was as follows:


	December 31,
(In thousands)	2023		2022
Leasehold and building improvements	$	623	$	475
Machinery and equipment	738		2,282
Software	11		4,862
Tooling	1,197		1,827
Other	119		442
Total construction in progress	$	2,688	$	9,888

We expect that most of the assets under construction will be placed into service during the first six months of 2024. We will begin to depreciate the cost of these assets under construction once they are placed into service.

Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease ROU assets, were as follows:


	December 31,
(In thousands)	2023		2022
United States	$	13,245	$	16,427
People's Republic of China	26,679		42,893
Mexico	9,227		14,402
Vietnam	10,089		6,923
All other countries	4,072		3,745
Total long-lived tangible assets	$	63,312	$	84,390