Property, Plant and Equipment

9 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment consisted of the following (in thousands):

	September 30, 2016			December 31, 2015
Land and improvements	$	50		$	109
Buildings and improvements	1,610			2,472
Equipment	4,467			5,070
Property, plant and equipment, gross	6,127			7,651
Less accumulated depreciation	(2,745		)	(2,264		)
Property, plant and equipment, net	$	3,382		$	5,387

The total depreciation and amortization expense incurred during the three and nine months ended September 30, 2016, totaled approximately $781,000 and $2.4 million, respectively. Included in the depreciation and amortization is depreciation expense related to property, plant and equipment totaling $296,000 and $940,000 for the three and nine months ended September 30, 2016; amortization of capital lease assets of $316,000 and $951,000, respectively - of which $141,000 and $423,000 is included in cost of sales, respectively; and amortization of intangibles totaling $169,000 and $539,000, respectively.

The total depreciation and amortization expense incurred during the three and nine months ended September 30, 2015, totaled $920,000 and $2.2 million, respectively. Included in the depreciation and amortization is a depreciation expense related to property, plant and equipment totaling $391,000 and $631,000 for the three and nine months ended September 30, 2015; amortization of capital lease assets of $477,000 and $1.4 million, respectively - none of which is included in cost of sales; and amortization of intangibles totaling $52,000 and $155,000, respectively.

The amortization of intangibles is further explained in Note (8), Goodwill and Other Intangible Assets.

Capital Leased Assets

In addition to owned property, the Company also has $14.2 million in leased assets, which is net of accumulated amortization of approximately $2.6 million as of September 30, 2016. At December 31, 2015 leased assets totaled $14.7 million which is net of accumulated amortization of approximately $1.6 million.

During the three months ended September 30, 2016 and 2015, the Company recorded $42,000, respectively, of amortization as a result of the deferred gains from the 2014 Sale Leaseback Agreement with CFI NNN Raiders. The Company recorded $126,000 of amortization during both the nine months ended September 30, 2016 and September 30, 2015, respectively.

Capital leases are further explained in Note (12), Commitments and Contingencies.

Dispositions

During the nine months ended September 30, 2016 and 2015, the sale of fixed assets resulted in proceeds of $327,000 and $1.2 million, respectively. The gain (loss) on sale of assets, excluding the deferred gain recognized by the 2014 Sale Leaseback Agreement with CFI NNN Raiders, totaled $(642,000) and $490,000 during the three months ended September 30, 2016 and 2015, respectively. During the nine months ended September 30, 2016 and 2015, the gain (loss) on sale of assets totaled $(613,000) and $489,000, respectively.