Property, Plant, Equipment and Railcars on Lease, net

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant, Equipment, and Railcars on Operating Lease, net

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



	December 31,
	2013			2012
	(in thousands)
Operations/Corporate:
Buildings	$	155,937		$	151,545
Machinery and equipment	186,844			173,468
Land	3,335			3,335
Construction in process	14,487			12,156
	360,603			340,504
Less accumulated depreciation	(201,228		)	(184,611		)
Property, plant and equipment, net	$	159,375		$	155,893
Railcar Leasing:
Railcars on Lease	$	388,060		$	225,992
Less accumulated depreciation	(15,509		)	(5,710		)
Railcars on operating lease, net	$	372,551		$	220,282

Capitalized interest

In conjunction with the interest costs incurred related to the senior unsecured notes described in Note 11, the Company capitalized interest on certain property, plant and equipment capital projects.

Lease agreements

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

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

As of December 31, 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):



2014	$	41,431
2015	40,686
2016	38,968
2017	30,620
2018	19,606
2019 and thereafter	33,561
Total	$	204,872

Depreciation expense

The following table summarizes depreciation expense:



	December 31,
	2013		2012		2011
	(in thousands)
Total depreciation expense	$	27,712	$	23,850	$	22,167
Depreciation expense on leased railcars	$	9,799	$	4,424	$	505

- 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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