Property, Plant and Equipment

6 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

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

The following table summarizes the components of property, plant, equipment and railcars on operating leases, net:

	June 30, 2014			December 31, 2013
	(in thousands)
Operations / Corporate:
Buildings	$	156,122		$	155,937
Machinery and equipment	188,150			186,844
Land	3,335			3,335
Construction in process	18,685			14,487
	366,292			360,603
Less accumulated depreciation	(208,335		)	(201,228		)
Property, plant and equipment, net	$	157,957		$	159,375
Railcar Leasing:
Railcars on operating leases	$	474,499		$	388,060
Less accumulated depreciation	(22,469		)	(15,509		)
Railcars on operating leases, net	$	452,030		$	372,551

Railcars on operating 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 June 30, 2014, 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 2014	$	29,840
2015	59,268
2016	57,550
2017	43,401
2018	31,500
2019 and thereafter	47,724
Total	$	269,283

Depreciation expense

The following table summarizes depreciation expense:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
	(in thousands)
Total depreciation expense	$	7,989	$	6,860	$	15,672	$	13,395
Depreciation expense on leased railcars	$	3,659	$	2,300	$	6,990	$	4,415