Property, Plant and Equipment

6 Months Ended

Jun. 30, 2011

Property, Plant and Equipment [Abstract]

Note 6 — Property, Plant and Equipment

The following table summarizes the components of property, plant and equipment.


	June 30,			December 31,
	2011			2010
	(in thousands)
Property, plant and equipment
Buildings	$	149,757		$	149,021
Machinery and equipment		177,497			177,217

		327,254			326,238
Less accumulated depreciation		(159,759	)		(149,304	)

Net property, plant and equipment		167,495			176,934
Land		3,335			3,335
Construction in process		648			986

Total property, plant and equipment	$	171,478		$	181,255

Depreciation expense

Depreciation expense for the three months ended June 30, 2011 and 2010 was $5.7 million and $6.0 million, respectively. Depreciation expense for the six months ended June 30, 2011 and 2010 was $11.5 million and $11.9 million, respectively.

Capitalized interest

In conjunction with the interest costs incurred related to the Unsecured Senior Fixed Rate Notes offering described in Note 10, the Company has been recording capitalized interest on certain property, plant and equipment capital projects. ARI also capitalized interest related to the investment in Axis during its developmental stage. The amount of interest capitalized for both the three months ended June 30, 2011 and 2010 was less than $0.1 million. The amount of interest capitalized for both the six months ended June 30, 2011 and 2010 was less than $0.1 million.

Lease agreements

The Company leases railcars to third parties under multiple year agreements. One of the leases includes a provision that allows the lessee to purchase any portion of the leased railcars at any time during the lease term for a stated market price, which approximates fair value. These agreements have been classified as operating leases and the leased railcars have been included in machinery and equipment and are depreciated in accordance with the Company’s depreciation policy.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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