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Property Plant and Equipment and Intangible Assets | 12 Months Ended
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Jan. 03, 2025
Property, Plant and Equipment [Abstract] |
Property, Plant and Equipment and Intangible Assets | Note 5. Property, Plant and Equipment and Intangible Assets The following tables summarize the components of property, plant and equipment as of January 3, 2025 and December 29, 2023:
|  | January 3, 2025 |  |  | December 29, 2023 |
(In thousands) |  |  |  |  |  |
Building and land |  | $ | 171 |  |  | $ | 4,002 |
Machinery, equipment, and vehicles |  |  | 51,227 |  |  |  | 70,250 |
Office furniture and equipment |  |  | 6,876 |  |  |  | 9,324 |
Property, plant and equipment, gross |  |  | 58,274 |  |  |  | 83,576 |
Accumulated depreciation |  |  | (39,142 | ) |  |  | (37,203 | )
Property, plant and equipment, net |  | $ | 19,132 |  |  | $ | 46,373 |
|  | Fiscal Year Ended |
|  | January 3, |  |  | December 29, |
|  | 2025 |  |  | 2023 |
(In thousands) |  |  |  |  |  |
Depreciation expense |  | $ | 12,276 |  |  | $ | 14,338 |
Depreciation is recorded within cost of revenue and selling, general and administrative expenses and is calculated using the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements and capitalized leases, the lesser of the remaining term of the lease or its estimated useful life. During the fiscal year ended January 3, 2025, Shimmick completed the sale-leaseback of the Company's equipment yard in Tracy, California. The agreement consummated the sale of the equipment yard for $20.5 million and allows us to continue using the property pursuant to a separately executed seven-year lease. The Company received net proceeds of $17 million, after adjustments for prepaid rent through February 2026 and related closing costs, which were used to repay borrowings under the Revolving Credit Facility. As a result of the sale, the Company recorded a gain of $17 million in gain on sale of assets within the consolidated statements of operations. During the fiscal year ended January 3, 2025, Shimmick made the strategic decision to enhance the Company’s current ERP system rather than implementing a new platform which, due to prior capitalized pre-implementation costs and remaining contractual obligations of $5 million included in accrued expenses in the accompanying consolidated balance sheets, resulted in a charge of $16 million recorded in the fiscal year ended January 3, 2025. The following tables present the Company’s finite-lived intangible assets, including the weighted- average useful lives for each major intangible asset category and in total:
|  | January 3, 2025 |
|  | Weighted Average Remaining Useful Life |  |  | Intangible Assets, Gross |  |  | Accumulated Amortization |  |  | Intangible Assets, Net |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |
Trademark |  |  | 3 |  |  | $ | 10,600 |  |  | $ | (6,057 | ) |  | $ | 4,543 |
Customer contracts |  |  | 2 |  |  |  | 6,373 |  |  |  | (4,249 | ) |  |  | 2,124 |
Total |  |  |  |  | $ | 16,973 |  |  | $ | (10,306 | ) |  | $ | 6,667 |
|  | December 29, 2023 |
|  | Weighted Average Remaining Useful Life |  |  | Intangible Assets, Gross |  |  | Accumulated Amortization |  |  | Intangible Assets, Net |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |
Trademark |  |  | 4 |  |  | $ | 10,600 |  |  | $ | (4,543 | ) |  | $ | 6,057 |
Customer contracts |  |  | 3 |  |  |  | 6,527 |  |  |  | (3,340 | ) |  |  | 3,187 |
Total |  |  |  |  | $ | 17,127 |  |  | $ | (7,883 | ) |  | $ | 9,244 |
Amortization of intangibles was $3 million for each of the fiscal years ended January 3, 2025 and December 29, 2023 and is recorded in selling, general and administrative expenses within the consolidated statements of operations. The Company’s estimated aggregate remaining amortization is as follows:
|  | Amortization |
|  | Expense |
(In thousands) |  |  |
2025 |  | $ | 2,577 |
2026 |  |  | 2,577 |
2027 |  |  | 1,513 |
Total |  | $ | 6,667 |

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- Definition The entire disclosure for intangible assets and long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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