ProFrac Holding Corp. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Supplemental balance sheet information

Supplemental balance sheet information

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Supplemental balance sheet information

3. SUPPLEMENTAL BALANCE SHEET INFORMATION

Inventories

Inventories are comprised of the following:


	December 31,
	2023		2022
Raw materials and supplies	$	84.2	$	97.3
Work in process		20.5		12.2
Finished products and parts		131.9		140.0
Total	$	236.6	$	249.5

Property, Plant, and Equipment, Net

Property, plant and equipment, net is comprised of the following:


	December 31,
	2023			2022
Machinery and equipment	$	2,130.8		$	1,665.1
Mining property and mine development		425.3			172.1
Buildings and leasehold improvements		113.9			102.0
Land		13.3			5.6
Office equipment, software and other		17.6			12.6
Construction in progress		88.3			156.1
Total		2,789.2			2,113.5
Less: accumulated depreciation, depletion and amortization		(1,010.2	)		(717.1	)
Property, plant, and equipment, net	$	1,779.0		$	1,396.4

The increase in net property, plant, and equipment was partially due to assets of $506.4 million acquired through our 2023 acquisitions (see Note 4).

Depreciation and amortization expense related to property, plant, and equipment was $398.0 million, $261.2 million and $139.9 million in 2023, 2022 and 2021, respectively. Depletion expense was $5.2 million, $0.5 million, and $0.2 million in 2023, 2022 and 2021, respectively.

Intangible Assets, Net

Intangible assets, net is comprised of the following:


	Weighted Average Remaining Amortization period (Years)	Estimated Useful Life (in years)	Gross Book Value		Less: Accumulated Amortization			Net Book Value
As of December 31, 2023
Acquired technology	8.7	3-10	$	124.7	$	(17.2	)	$	107.5
Customer relationships	2.9	4		89.6		(23.6	)		66.0
Intangible assets, net	6.5		$	214.3	$	(40.8	)	$	173.5

As of December 31, 2022
Acquired technology	9.6	3-10	$	124.7	$	(4.2	)	$	120.5
Customer relationships	3.9	4		84.0		(1.4	)		82.6
Intangible assets, net	7.3		$	208.7	$	(5.6	)	$	203.1

We amortize other identifiable intangible assets with a definite life on a straight-line basis over the estimated useful lives of the assets. Our definite-lived intangible assets consist of acquired technology and customer relationships.

Amortization expense related to intangible assets was $35.2 million, $5.6 million, and $0.6 million in 2023, 2022 and 2021, respectively.

The estimated future amortization expense related to intangible assets is $35.4 million in 2024, $35.1 million in 2025, $33.5 million in 2026, $12.4 million in 2027, $12.0 million in 2028, and $45.1 million thereafter.

Accrued Expenses

Accrued expenses are comprised of the following:


	December 31,
	2023		2022
Employee compensation and benefits	$	22.6	$	39.6
Sales, use, and property taxes		24.0		20.1
Insurance		10.9		7.4
Interest		5.4		17.5
Income taxes		1.5		0.7
Other		1.2		18.4
Total accrued expenses	$	65.6	$	103.7

Other Current Liabilities

Other current liabilities are comprised of the following:


	December 31,
	2023		2022
Acquired contract liabilities	$	43.5	$	15.8
Accrued legal contingencies		20.7		7.0
Deferred revenue		7.3		23.1
Tax receivable agreement obligation		2.8		3.3
Other		9.8		4.0
Total other current liabilities	$	84.1	$	53.2