Property, Plant and Equipment

12 Months Ended

Jun. 30, 2019

Property, Plant and Equipment

Property, Plant and Equipment

Note 6.  Property, Plant and Equipment

Property, plant and equipment at June 30, 2019 and 2018 consisted of the following:

					June 30,		June 30,
(In thousands)	Useful Lives				2019		2018
Land	—				$	1,783	$	2,900
Building and improvements	10	-	39	years		87,609		105,041
Machinery and equipment	5	-	10	years		156,166		173,988
Furniture and fixtures	5	-	7	years		3,105		4,099
Less accumulated depreciation						(83,424)		(89,996)
						165,239		196,032
Construction in progress						21,431		37,215
Property, plant and equipment, net					$	186,670	$	233,247

Depreciation expense for the fiscal years ended June 30, 2019, 2018 and 2017 was $23.4 million, $22.4 million and $21.8 million, respectively.

In the first quarter of Fiscal 2019, the Company approved a plan to sell the Cody API business.  The Company was unable to sell the Cody API business as an ongoing operation and intends to sell the equipment and real estate utilized by the Cody API business and to have Cody Labs cease all operations.  As such, all assets, including property, plant and equipment totaling $6.7 million, are recorded in the assets held for sale caption in the Consolidated Balance Sheet as of June 30, 2019.  In addition, as part of the held for sale classification, the Company is required to record the assets of the Cody API business at fair value less costs to sell.  The Company performed a fair value analysis which resulted in a $2.9 million impairment of the Cody API property, plant and equipment assets in the fourth quarter of Fiscal 2019, which is in addition to the $29.9 million impairment recorded in the first quarter of Fiscal 2019.  See Note 21 “Assets Held for Sale” for more information. 

In the fourth quarter of Fiscal 2019, the Company recorded additional impairment charges totaling $3.0 million primarily related to obsolete equipment and computer software related to the consolidation of manufacturing functions and shutdown of the Company’s Townsend Road facility.

Property, plant and equipment, net included amounts held in foreign countries in the amount of $1.0 million and $1.1 million at June 30, 2019 and June 30, 2018, respectively.