PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2017

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

6.         PROPERTY, PLANT AND EQUIPMENT

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

	2017		2016
	(in thousands)
Mining equipment and processing facilities	$	1,847,037	$	1,854,001
Land and mineral rights		449,152		439,236
Buildings, office equipment and improvements		310,167		304,696
Construction and mine development in progress		47,223		26,025
Mine development costs		280,609		297,030
Property, plant and equipment, at cost		2,934,188		2,920,988
Less accumulated depreciation, depletion and amortization		(1,457,532)		(1,335,145)
Total property, plant and equipment, net	$	1,476,656	$	1,585,843

At December 31, 2017 and 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. 

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 $140.9 million included in mining equipment 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 $55.6 million, $34.2 million and $7.1 million as of December 31, 2017, 2016 and 2015, respectively, and amortization expense was $24.9  million, $27.2 million and $5.7 million for the years ended December 31, 2017, 2016 and 2015, 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.