Property, Plant and Equipment and Railcars on Leases, net

6 Months Ended

Jun. 30, 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:

	June 30, 2016			December 31, 2015
	(in thousands)
Operations / Corporate:
Buildings	$	178,622		$	167,537
Machinery and equipment	225,931			219,488
Land	3,809			3,687
Construction in process	6,393			16,784
	414,755			407,496
Less accumulated depreciation	(238,106		)	(231,185		)
Property, plant and equipment, net	$	176,649		$	176,311
Railcar Leasing:
Railcars on leases	$	939,732		$	906,786
Less accumulated depreciation	(72,924		)	(58,069		)
Railcars on leases, net	$	866,808		$	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 June 30, 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 6 months of 2016	$	64,605
2017	115,566
2018	102,210
2019	83,772
2020	48,846
2021 and thereafter	66,514
Total	$	481,513

Depreciation expense

The following table summarizes depreciation expense:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
	(in thousands)
Total depreciation expense	$	12,961	$	10,910	$	25,616	$	20,971
Depreciation expense on leased railcars	$	7,504	$	6,353	$	14,879	$	11,844