PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

6.         PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following at December 31:

	2016		2015
	(in thousands)
Mining equipment and processing facilities	$	1,854,001	$	1,923,310
Land and mineral rights		439,236		418,668
Buildings, office equipment and improvements		304,696		291,106
Construction and mine development in progress		26,025		94,482
Mine development costs		297,030		316,694
Property, plant and equipment, at cost		2,920,988		3,044,260
Less accumulated depreciation, depletion and amortization		(1,335,145)		(1,243,985)
Total property, plant and equipment, net	$	1,585,843	$	1,800,275

At December 31, 2016, there were no capitalized development costs associated with mines in the development phase.  All past capitalized development costs are associated with mines that shifted to the production phase and thus, these costs are being amortized.  The ARLP Partnership believes that the carrying value of the past development costs will be recovered.  At December 31, 2015, capitalized mine development costs representing the carrying value of development costs attributable to properties where the ARLP Partnership had not reached the production stage of mining operations totaled $5.9 million.

Equipment leased by the ARLP Partnership under lease agreements which are determined to be capital leases are stated at an amount equal to the present value of the minimum lease payments during the lease term, less accumulated amortization.  Equipment under capital leases totaling $144.5 million included in mining equipment and processing facilities is amortized on the straight-line method over the shorter of its useful life or the related lease term.  The provision for amortization of leased properties is included in depreciation, depletion and amortization expense.  Accumulated amortization related to the ARLP Partnership's capital leases was $34.2 million, $7.1 million and $5.6 million as of December 31, 2016, 2015 and 2014, respectively, and amortization expense was $27.2 million, $5.7 million and $1.6 million for the years ended December 31, 2016, 2015 and 2014, respectively. For information regarding long-lived asset impairments please see Note 4 – Long-Lived Asset Impairments.  See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for property, plant and equipment.