Property, Plant and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost and are depreciated and amortized over a period of three to 39 years generally under the straight-line method for financial reporting purposes and accelerated methods for income tax purposes.

Property, plant and equipment as of December 31 were as follows (in thousands):


	2023			2022
Land	$	3,600		$	3,600
Buildings and improvements		82,861			73,520
Machinery and equipment		282,084			271,021
Furniture and fixtures		14,346			15,297
Construction in-progress and deposits		17,723			52,937
		400,614			416,375
Accumulated depreciation and amortization		(250,315	)		(258,570	)
Right of use asset - net		7,390			8,204
Net balance	$	157,689		$	166,009

Depreciation expense for the years ended December 31, 2023, 2022 and 2021 was approximately $17,174,000, $13,701,000, and $11,609,000, respectively. As of December 31, 2023, the Company had approximately $15,014,000 of capital expenditure commitments.

On August 9, 2022, Congress enacted a 25 percent tax credit for investment in semiconductor manufacturing to incentivize domestic semiconductor production. The Advanced Manufacturing Investment Tax Credit ("ITC") was enacted as part of the Creating Helpful Incentives to Produce Semiconductors Act in response to supply chain disruptions.

The Company has undergone a study of its 2023 capital expenditures to determine which additions would qualify under the ITC guidance and which would not. The Company believes that it does comply with the grant conditions supported by the study and that the grant will be received based on meeting these conditions.

The Company recorded in the year ended December 31, 2023 an Other current asset for the associated value of the ITC credit receivable of $13,248,000, with a corresponding offset to the Property, plant and equipment line item on its Consolidated Balance Sheet. The Company expects to receive the ITC credit in the form of a cash refund shortly after filing its 2023 tax return.