Property, Plant and Equipment, Net

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment, Net.

Property, Plant and Equipment, Net

Note 7. Property, Plant and Equipment, Net

The following table summarizes property, plant and equipment, net:

(Thousands)	Depreciable Lives	September 30, 2022		December 31, 2021
Land		$	9,092	$	9,150
Buildings	10-40 years		44,274		43,895
Leasehold improvements1			923		613
Plant equipment	3-15 years		90,912		88,155
Vehicles and transportation equipment	3-5 years		753		876
IT systems	3-7 years		2,475		2,453
Furniture and fixtures	3-10 years		2,890		2,746
Customer beverage equipment2	3-5 years		21,879		24,341
Lease right-of-use assets3			10		—
Construction in progress and equipment deposits			23,775		8,025
			196,983		180,254
Less: accumulated depreciation			(62,852)		(52,641)
Property, plant and equipment, net		$	134,131	$	127,613

1 - Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life.

2 - Customer beverage equipment consists of brewers held on site at customer locations.

3 - Lease right-of-use assets are amortized over the shorter of the useful life of the asset or the lease term.

Depreciation expense for the three and nine months ended September 30, 2022 was $4.1 million and $12.7 million, respectively, and depreciation expense for the three and nine months ended September 30, 2021 was $4.4 million and $13.4 million, respectively. Assets classified as construction in progress and equipment deposits are not depreciated, as they are not ready for production use. All assets classified as construction in progress and equipment deposits at September 30, 2022 are expected to be in production use.