Gulf Island Fabrication, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Long-Lived Assets and Leased Facilities and Equipment (Tables)

Long-Lived Assets and Leased Facilities and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Summary of Property, Plant and Equipment

Property, plant and equipment consisted of the following at December 31, 2023 and 2022 (in thousands):


	Estimated	December 31,
	Useful Life	2023			2022
	(in Years)
Land	—	$	2,103		$	4,376
Buildings	10 to 25		19,232			25,584
Machinery and equipment	3 to 15		64,035			67,851
Furniture and fixtures	3 to 5		762			994
Transportation equipment	2 to 5		2,369			2,361
Improvements	15		17,277			23,246
Construction in progress	—		2,060			2,881
Total property, plant and equipment			107,838			127,293
Accumulated depreciation			(84,693	)		(96,139	)
Property, plant and equipment, net		$	23,145		$	31,154

Schedule of Minimum Rental Payments

Future minimum payments under leases having initial terms of more than twelve months are as follows (in thousands):


	Minimum Payments
2024	$	884
2025		424
2026		76
2027		64
Total lease payments		1,448
Less: interest		(99	)
Present value of lease payments (1), (2)	$	1,349

(1)

During 2022, we entered into a sublease arrangement with a third-party for the remainder of our corporate office lease, which will partially recover our lease costs for the office for the duration of the lease. In connection therewith, we recorded an impairment charge of $0.5 million associated with the underlying right-of-use asset for the corporate office lease. The impairment is included in other (income) expense, net on our Statement of Operations and is reflected within our Corporate Division.

(2)

The discount rate used to determine the present value of our lease payments was based on the interest rate on our LC Facility adjusted for terms similar to that of our leased properties. At December 31, 2023, our weighted-average remaining lease term was approximately 1.9 years and the weighted-average discount rate used to derive our lease liability was 6.9%.

Schedule of Other Intangible Assets

Other intangible assets were derived from the estimated fair value of existing underlying customer relationships associated with a previous acquisition and consisted of the following at December 31, 2023 and 2022 (in thousands):


	December 31,
	2023			2022
Customer relationships	$	996		$	996
Accumulated amortization		(296	)		(154	)
Intangible assets, net	$	700		$	842