Property, Plant and Equipment

6 Months Ended

Jun. 30, 2013

Property, Plant and Equipment [Abstract]

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



	June 30, 2013			December 31, 2012
	(in thousands)
Operations / Corporate:
Buildings	$	155,308		$	151,545
Machinery and equipment	178,722			173,468
Land	3,335			3,335
Construction in process	12,773			12,156
	350,138			340,504
Less accumulated depreciation	(192,810		)	(184,611		)
Property, plant and equipment, net	$	157,328		$	155,893
Railcar Leasing:
Railcars on lease	$	306,869		$	225,992
Less accumulated depreciation	(10,125		)	(5,710		)
Railcars on operating lease, net	$	296,744		$	220,282

Lease agreements

The Company leases railcars to third parties under multi-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. Railcars subject to lease agreements are classified as railcars on operating leases and are depreciated in accordance with the Company’s depreciation policy.

Capital expenditures for leased railcars represent cash outflows of the Company’s cost to produce railcars shipped or to be shipped for lease.

As of June 30, 2013, future contractual minimum rental revenues required under non-cancellable operating leases for railcars with terms longer than one year are as follows (in thousands):



Remaining 6 months of 2013	$	15,516
2014	29,409
2015	28,735
2016	27,946
2017	20,837
2018	12,579
2019 and thereafter	23,970
Total	$	158,992

Depreciation expense

The following table summarizes depreciation expense.



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
	(in thousands)
Total depreciation expense	$	6,860	$	5,884	$	13,395	$	11,286
Depreciation expense on leased railcars	$	2,300	$	945	$	4,415	$	1,422

- 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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