Property, Plant and Equipment and Railcars on Leases, net

6 Months Ended

Jun. 30, 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:

	June 30, 2017			December 31, 2016
	(in thousands)
Operations / Corporate:
Buildings	$	185,594		$	182,970
Machinery and equipment	233,111			232,171
Land	4,813			4,328
Construction in process	1,135			1,966
	424,653			421,435
Less accumulated depreciation	(255,025		)	(244,384		)
Property, plant and equipment, net	$	169,628		$	177,051
Railcar Leasing:
Railcars on lease	$	1,100,122		$	996,422
Less accumulated depreciation	(105,301		)	(88,412		)
Railcars on lease, net	$	994,821		$	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 June 30, 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 6 months of 2017	$	65,036
2018	122,716
2019	103,354
2020	66,862
2021	49,915
2022 and thereafter	88,477
Total	496,360

Depreciation expense

The following table summarizes depreciation expense:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
	(in thousands)
Total depreciation expense	$	14,301	$	12,961	$	28,174	$	25,616
Depreciation expense on leased railcars	$	8,658	$	7,504	$	16,894	$	14,879