Property, Plant and Equipment and Railcars on Leases, net

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, net

Property, Plant, Equipment and Railcars on Leases, net

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

	March 31, 2016			December 31, 2015
	(in thousands)
Operations / Corporate:
Buildings	$	177,736		$	167,537
Machinery and equipment	221,571			219,488
Land	3,687			3,687
Construction in process	6,624			16,784
	409,618			407,496
Less accumulated depreciation	(233,834		)	(231,185		)
Property, plant and equipment, net	$	175,784		$	176,311
Railcar Leasing:
Railcars on leases	$	926,909		$	906,786
Less accumulated depreciation	(65,421		)	(58,069		)
Railcars on leases, net	$	861,488		$	848,717

Railcars on 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 March 31, 2016, 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 9 months of 2016	$	96,568
2017	114,799
2018	101,443
2019	83,094
2020	48,256
2021 and thereafter	64,485
Total	$	508,645

Depreciation expense

The following table summarizes depreciation expense:

	Three Months Ended
	March 31,
	2016		2015
	(in thousands)
Total depreciation expense	$	12,655	$	10,061
Depreciation expense on leased railcars	$	7,375	$	5,491