Property, Plant, and Equipment

12 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment, net

Property, plant, and equipment acquired outside of acquisition are stated at cost. When property, plant, and equipment is retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is accounted for in the statement of operations and comprehensive income. Major additions are capitalized; maintenance, repairs and minor improvements are charged to operating expenses as incurred if they do not increase the life or productivity of the related capitalized asset. Depreciation on leasehold improvements is computed using the straight-line method based on the lesser of the remaining lease term or the estimated useful life and depreciation of equipment is computed using the straight-line method over the estimated useful life as follows:


						Years
Building						20
Leasehold improvements						Shorter of useful life or lease term
Machinery and equipment						3-5
Furniture and fixtures						3-5

The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC Topic 360, Property, Plant, and Equipment. In accordance with ASC Topic 360, long-lived assets to be held are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. The Company periodically reviews for indicators and, if indicators are present, tests the carrying value of long-lived assets, assessing their net realizable values based on estimated undiscounted cash flows over their remaining estimated useful lives. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset, based on discounted cash flows. No impairment charges were recorded for the fiscal years ended June 30, 2022, 2021 and 2020 in the Company’s consolidated financial statements.

Property, plant, and equipment, net consisted of the following:


	As of June 30,
	2022		2021
Land	$	4,905	$	4,600
Building and leasehold improvements	81,030		74,622
Machinery and equipment	82,469		66,792
Furniture and fixtures	10,805		9,600
Construction in process	52,852		22,005
	232,061		177,619
Less accumulated depreciation	(61,343)		(44,706)
	$	170,718	$	132,913

Depreciation expense was $19,365, $15,636 and $12,249 for the fiscal years ended June 30, 2022, 2021 and 2020, respectively, substantially all of which was recorded in cost of sales. During fiscal year 2022, the Company disposed of various assets with a net book value of $3 and recorded a gain of $6 related to these disposals. During fiscal year 2021, the Company disposed of various assets with a net book value of $383 and recorded a loss of $374 related to these disposals.