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

Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment and Leased Facilities and Equipment (Tables)

Property, Plant and Equipment and Leased Facilities and Equipment (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Summary of Property, Plant and Equipment

Property, plant and equipment consisted of the following at December 31, 2022 and 2021 (in thousands):


	Estimated	December 31,
	Useful Life	2022			2021
	(in Years)
Land	—	$	4,376		$	4,416
Buildings	10 to 25		25,584			25,742
Machinery and equipment	3 to 15		67,851			70,212
Furniture and fixtures	3 to 5		994			1,276
Transportation equipment	2 to 5		2,361			2,363
Improvements	15		23,246			23,404
Construction in progress	—		2,881			705
Right-of-use asset (1)	15		—			2,000
Total property, plant and equipment			127,293			130,118
Accumulated depreciation			(96,139	)		(95,452	)
Property, plant and equipment, net		$	31,154		$	34,666

(1)

Represents the Harvey Option Facility. See Note 4 for further discussion of the Harvey Option Facility and related Harvey Option, which was sold during the third quarter 2022.

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
2023	$	869
2024		884
2025		424
2026		76
2027		64
Total lease payments		2,317
Less: interest		(221	)
Present value of lease liabilities (1)	$	2,096

(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 our 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.