Property, Plant and Equipment

6 Months Ended

Jun. 30, 2023

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

Note 4 – Property, Plant and Equipment

Property, plant and equipment were comprised of the following:

	June 30, 2023			December 31, 2022
Land and land improvements	$	9,888		$	9,887
Buildings and leasehold improvements		64,931			62,102
Machinery and equipment		352,558			339,134
Construction-in-process		21,210			16,005
Other		6,837			6,706
		455,424			433,834
Accumulated depreciation and amortization		(298,712	)		(278,836	)
Property, plant and equipment, net	$	156,712		$	154,998

The land and building of Union Electric Steel UK Limited, an indirect subsidiary of the Corporation (“UES-UK”), equal to $2,687 (£2,122) at June 30, 2023, are held as collateral by the trustees of the UES-UK defined benefit pension plan (Note 8). Machinery and equipment purchased with proceeds from the equipment finance facility, equal to $10,595 at June 30, 2023, are included in construction-in-process and pledged as collateral for the facility (Note 7). The remaining assets, other than real property, of the Corporation are pledged as collateral for the Corporation’s revolving credit facility (Note 7).

Certain land and land improvements and buildings and leasehold improvements are included in the sale and leaseback financing transactions and disbursement agreement (Note 7). Title to these assets lies with the lender; however, since the transactions qualified as financing transactions, versus sales, the assets remain recorded on the Corporation’s condensed consolidated balance sheet.

The gross value of assets under finance leases and the related accumulated amortization approximated $3,867 and $1,678, respectively, as of June 30, 2023 and $3,917 and $1,577, respectively, at December 31, 2022. Depreciation expense approximated $4,268 and $4,348, including depreciation of assets under finance leases of approximately $67 and $140, for the three months ended June 30, 2023 and 2022, respectively. Depreciation expense approximated $8,549 and $8,737, including depreciation of assets under finance leases of approximately $137 and $260, for the six months ended June 30, 2023 and 2022, respectively.