Property, Plant and Equipment, net

3 Months Ended

Jun. 28, 2024

Property, Plant and Equipment [Abstract]

7. Property, Plant and Equipment, net

Property, plant and equipment, net, is stated at cost and consisted of the following:


	June 28, 2024			March 29, 2024
Land	$	24,770		$	25,595
Buildings, building improvements and leasehold improvements		63,824			65,626
Machinery and equipment		679,938			674,220
Office equipment		6,812			6,978
Right-of-use asset		8,116			8,218
Construction in progress		42,347			39,052
Total		825,807			819,689
Less accumulated depreciation		(506,044	)		(498,514	)
Total	$	319,763		$	321,175

Total depreciation expense amounted to $9,797 and $12,767 for the three-month periods ended June 28, 2024 and June 30, 2023, respectively. Total amortization expense for the right-of-use asset amounted to $349 for the three-month period ended June 28, 2024.

Property, plant and equipment, net, including improvements that significantly add to productive capacity or extend useful life, are stated at historical cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The Company periodically reviews the estimated useful lives of property, plant and equipment. Changes to estimated useful lives are recorded prospectively from the date of the change. Maintenance and repairs expenditures are charged to expense as incurred.

The Company continues to expand and optimize its global manufacturing capacities, such as by its recent expansion of operations at its Philippines location, as well as its recent acquisition of Crocus Technology International Corp. (“Crocus”). Through its expansion efforts, newly acquired machinery and equipment and continuous maintenance and evaluation of on-hand equipment, the Company recognized advancements in equipment quality indicating increased estimated useful lives. During its first quarter, periodic review of the estimated useful lives of long-lived assets, the Company determined that the useful lives of its machinery and equipment should be increased. Effective March 30, 2024, the Company increased the useful lives of a significant portion of its machinery and equipment from seven years to ten years. These changes decreased depreciation expense by $4,455, decreased interim income tax expense by $3,608 and increased net income by $8,063, or $0.04 per share, for the three months ended June 28, 2024.