Property, Plant and Equipment and Railcars on Leases, net

3 Months Ended

Mar. 31, 2017

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, 2017			December 31, 2016
	(in thousands)
Operations / Corporate:
Buildings	$	183,086		$	182,970
Machinery and equipment	232,035			232,171
Land	4,329			4,328
Construction in process	3,463			1,966
	422,913			421,435
Less accumulated depreciation	(249,844		)	(244,384		)
Property, plant and equipment, net	$	173,069		$	177,051
Railcar Leasing:
Railcars on lease	$	1,052,266		$	996,422
Less accumulated depreciation	(96,644		)	(88,412		)
Railcars on lease, net	$	955,622		$	908,010

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, 2017, 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 2017	$	94,790
2018	116,668
2019	97,354
2020	61,192
2021	44,793
2022 and thereafter	69,598
Total	$	484,395

Depreciation expense

The following table summarizes depreciation expense:

	Three Months Ended
	March 31,
	2017		2016
	(in thousands)
Total depreciation expense	$	13,873	$	12,655
Depreciation expense on leased railcars	$	8,237	$	7,375