Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.23.3
Property and Equipment
 9 Months Ended
Oct. 01, 2023
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets. Property and equipment as of October 1, 2023 and January 1, 2023, consisted of the following (in thousands).
October 1, 2023 January 1, 2023
Machinery and equipment $ 74,565  $ 55,694 
Office equipment and software 2,412  1,586 
Furniture and fixtures 829  771 
Leasehold improvements 30,012  24,565 
Construction in process 49,956  33,268 
Total property and equipment 157,774  115,884 
Less: accumulated depreciation (21,061) (12,016)
Property and equipment, net $ 136,713  $ 103,868 
The following table summarizes the depreciation and amortization expenses related to property and equipment, which are recorded within cost of revenue, research and development expense and selling, general and administrative expense in the Condensed Consolidated Statements of Operations (in thousands).
Quarters Ended Fiscal Years-to-Date Ended
October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022
Depreciation expense $ 3,588  $ 2,857  $ 10,566  $ 4,388 
Equipment Impairment
During the second quarter of 2023, the Company disposed a group of machinery and equipment and recorded an impairment charge of $4.4 million. There was no impairment charge recorded in the quarter ended October 1, 2023 and the impairment charge for the fiscal year-to-date ended October 1, 2023 was $4.4 million. As of October 1, 2023 and January 1, 2023, $0.6 million and $1.7 million of the impairment charges, respectively, were recorded as accrued expenses on the Condensed Consolidated Balance Sheet. These impaired assets were previously capitalized as “Machinery and equipment” category of property and equipment, net on the Condensed Consolidated Balance Sheets. No impairment of equipment was recorded for the corresponding periods in the prior year.