Property, Plant and Equipment, net

9 Months Ended

Mar. 31, 2023

Property, Plant and Equipment, net

Property, Plant and Equipment, net

Note 7. Property, Plant and Equipment, net

Property, plant and equipment, net at March 31, 2023 and June 30, 2022 consisted of the following:

		March 31,		June 30,
(In thousands)	Useful Lives	2023		2022
Land	—	$	—	$	533
Building and improvements	10 - 39 years		7,955		93,701
Machinery and equipment	5 - 10 years		54,666		158,854
Furniture and fixtures	5 - 7 years		1,234		3,367
Less accumulated depreciation			(54,077)		(136,433)
			9,778		120,022
Construction in progress			2,585		13,156
Property, plant and equipment, net		$	12,363	$	133,178

Depreciation expense for the three months ended March 31, 2023 and 2022 was $5.8 million and $5.2 million, respectively. Depreciation expense for the nine months ended March 31, 2023 and 2022 was $15.7 million and $16.2 million, respectively.

In conjunction with the Restructuring Support Agreement, the Company, with the knowledge of its lenders, has begun to explore the sale of its Seymour, Indiana facility. The Company currently seeks to sell the facility and its contract manufacturing business to a pharmaceutical manufacturer that could benefit from the site’s exceptional history of FDA compliance, and with whom we would partner with to continue manufacturing our products at the site. The Company’s existing ANDAs and NDAs are not part of any potential sale. The Company determined that the above requires reclassification of the assets at the Seymour, Indiana facility to assets held for sale on our Consolidated Balance Sheets as of March 31, 2023. The Company evaluated the assets for impairment as the reclassification is considered a triggering event. As a result, the Company recorded an impairment charge of $72.5 million to adjust the assets to their expected fair value. For further discussion of the Chapter 11 Cases and Restructuring Support Agreement, see Note 20 “Subsequent Events.”

In the second quarter of Fiscal 2023, the Company recorded an impairment charge of $6.0 million to adjust the Torresdale facility to its approximate fair value in connection with the 2022 Restructuring Plan. See Note 4 “Restructuring Charges” for additional information on the plan.

Property, plant and equipment, net included amounts held in foreign countries in the amount of $0.7 million at March 31, 2023 and June 30, 2022.