Property, Plant and Equipment

12 Months Ended

Dec. 31, 2024

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):


	2024			2023
Land	$	3,600		$	3,600
Buildings and improvements		86,502			82,861
Machinery and equipment		298,688			282,084
Furniture and fixtures		14,567			14,346
Construction in-progress and deposits		8,229			17,723
		411,586			400,614
Accumulated depreciation and amortization		(265,248	)		(250,315	)
Right of use asset - net		6,367			7,390
Net balance	$	152,705		$	157,689

Depreciation expense for the years ended December 31, 2024, 2023 and 2022 was approximately $18,583,000, $17,174,000, and $13,701,000, respectively. As of December 31, 2024, the Company had approximately $12,669,000 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 had undergone a study of its 2024 and 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 years ended December 31, 2024 and 2023 an Other current asset for the associated value of the ITC credit receivable of $6,274,000 and $13,248,000, respectively, 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 next year in the form of a cash refund.