Property, Plant and Equipment

12 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

5. Property, Plant and Equipment

Property, plant and equipment consists of the following:


(in thousands)	June 30, 2022			June 30, 2021
Buildings and improvements	$	141,324		$	129,288
Land		36,215			33,734
Machinery and equipment		76,916			58,227
Cooperage		13,015			10,551
Vineyards		21,177			21,364
Furniture and fixtures		1,754			1,343
		290,401			254,507
Less accumulated depreciation and amortization		(71,697	)		(52,791	)
		218,704			201,716
Construction in progress		17,396			11,957
	$	236,100		$	213,673

Depreciation and amortization expense related to property and equipment was approximately $19.0 million and $11.3 million for the years ended June 30, 2022 and 2021 respectively.

During the year ended June 30, 2020, we sold a vineyard for $35.2 million. As part of the transaction, we disposed of long-lived assets, including land, vineyards, and winery equipment, with a net book value of $20.7 million. Simultaneously, with the close of the transaction, we entered into a lease with the purchaser for 10 years, with options to extend the lease for two additional periods of ten years each. The sale of the land, vineyards, and winery equipment, and immediate leaseback of the facility qualified for sale-leaseback accounting. The lease was evaluated and classified as an operating lease. The gain on disposal of assets of $14.4 million was deferred and is being recognized over the 10-year lease as a reduction of rent expense over the life of the lease. We recognized $1.3 million and $1.3 million on property, plant, and equipment for the years ended June 30, 2022 and 2021, respectively, as a component of gain (loss) within income from operations.