Property, Plant, and Equipment, net

12 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

The components of property, plant, and equipment, net consisted of the following:


	September 30,
(in thousands)	2022		2021
Land	$	995	$	—
Building	8,805		—
Equipment	42,330		37,985
Furniture and fixtures	1,394		1,125
Computer hardware and software	3,378		3,575
Leasehold improvements	7,180		6,663
Construction in progress	9,886		9,247
Property, plant, and equipment, gross	$	73,968	$	58,595
Accumulated depreciation	(36,101)		(36,051)
Property, plant, and equipment, net	$	37,867	$	22,544

Depreciation expense totaled $4.6 million and $4.0 million during the fiscal years ended September 30, 2022 and 2021, respectively. During the fiscal years ended September 30, 2022 and 2021, the Company sold certain equipment and recognized a gain (loss) on sale of assets of $2.7 million and $(0.5) million, respectively.

During 2022, there was a triggering event of negative cash flows and operating losses at the FOG asset group level within the Inertial Navigation product line of the A&D segment that indicated the carrying amounts of our long-lived assets may not be recoverable. In accordance with ASC 360, with regard to our long-lived assets, we performed an undiscounted cash flow analysis and concluded that the carrying value of the asset group was not recoverable. Accordingly, we then performed an analysis to estimate the fair value of the other long -lived assets and recognized an impairment charge within operating expenses of $3.0 million against the FOG property, plant, and equipment by the amount by which the carrying value of the asset group's other long-lived assets exceeded their estimated fair value for the fiscal year ended September 30, 2022. Key assumptions utilized in the determination of fair value include expected future cash flows and working capital requirements. While we believe the expectations and assumptions about the future are reasonable, they are inherently uncertain.

Geographical Concentrations

Long-lived assets consist of land, building, property, plant, and equipment. As of September 30, 2022 and 2021, approximately 95% and 97%, respectively, of our long-lived assets were located in the United States. The remaining long-lived assets are primarily located in Thailand. The increase in long-lived assets in Thailand was a result of consigning additional equipment in CIP for production purposes for use predominantly in the CATV Lasers and Transmitters product line.