Company: UFPT
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050425
Chunk: 32

Company: UFP TECHNOLOGIES INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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ories

Inventories are stated at the lower of cost (determined using the first-in, first-out method) or net realizable value, and consist of the following at the stated dates (in thousands):September 30,2025December 31,2024Raw materials$64,865 $65,747 Work in process5,704 5,730 Finished goods15,580 16,059 Total inventory$86,149 $87,536 

(10)    Property, Plant and Equipment

Property, plant, and equipment consist of the following (in thousands):September 30,2025December 31,2024Land and improvements$5,896 $5,759 Buildings and improvements38,275 37,895 Leasehold improvements12,308 11,216 Machinery & equipment73,179 65,244 Furniture, fixtures, computers & software10,222 8,314 Construction in progress9,075 6,506 Property, plant and equipment$148,955 $134,934 Accumulated depreciation and amortization(71,415)(64,370)Net property, plant and equipment$77,540 $70,564 

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(11)    Leases

The Company has operating and finance leases for offices, manufacturing plants, vehicles and certain office and manufacturing equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the right of use (“ROU”) assets or lease liabilities. These are expensed as incurred and recorded as variable lease expense. The Company determines if an arrangement is a lease at the inception of a contract. Operating and finance lease ROU assets and operating and finance lease liabilities are stated separately in the condensed consolidated balance sheet. ROU assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments pursuant to the lease. ROU assets and lease liabilities are recognized at commencement date based on the net present value of fixed lease payments over the lease term. The Company's assumed lease term includes options