Property, Plant, and Equipment, net

6 Months Ended

Nov. 24, 2024

Property, Plant and Equipment [Abstract]

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


	November 24, 2024		May 26, 2024
Land and land improvements	$	3,739	$	3,739
Buildings and building improvements	63,796		62,874

Machinery and equipment	62,661		61,013
Computer equipment and software	8,496		8,290
Furniture and fixtures	1,641		1,631
Construction in process	64,614		61,952
Property, plant, and equipment, gross	204,947		199,499
Less accumulated depreciation and amortization	(54,371)		(50,334)
Property, plant, and equipment, net	$	150,576	$	149,165

The major components of the construction in process are related to aseptic filler production to significantly increase manufacturing capacity.

Depreciation and amortization expense for property, plant, and equipment for the three months ended November 24, 2024 and November 26, 2023 was $2,044 and $1,987, respectively. Depreciation and amortization expense for property, plant, and equipment for the six months ended November 24, 2024 and November 26, 2023 was $4,037 and $3,934, respectively.

Interest is capitalized based on the average outstanding construction in process balance, excluding previously capitalized interest, using a 10% interest rate. Capitalized interest on construction projects was $745 and $1,094 for three months ended November 24, 2024 and November 26, 2023, respectively. Capitalized interest on construction projects was $1,456 and $2,063 for six months ended November 24, 2024 and November 26, 2023, respectively. Capitalized interest has decreased as we consider alternative approaches to generating cash flows from a legacy asset that has not yet generated revenue.

Property, plant, and equipment acquisitions that provide a benefit over several years, and exceed five thousand dollars, are capitalized. The depreciation policy for property, plant, and equipment is as follows:


	Depreciable Lives (in years)
Land improvements	10	—	40
Buildings and building improvements	7	—	40
Machinery and equipment	7	—	25
Transportation equipment	5	—	12
Computer hardware and software	3	—	10
Furniture, fixtures, and office equipment	5	—	10
Tools, molds, and dies	3