Property, Plant and Equipment

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



	December 31, 2016			December 31, 2015
Land and improvements	$	25		$	109
Buildings and improvements	1,640			2,472
Equipment	3,954			5,070
Property, plant and equipment, gross	5,619			7,651
Less accumulated depreciation	(2,760		)	(2,264		)
Property, plant and equipment, net	$	2,859		$	5,387

Property Under Capital leases

In addition to owned property, the Company also has approximately $13.9 million in leased assets, as of December 31, 2016, which is net of accumulated amortization of approximately $2.9 million. On December 31, 2015, leased assets totaled approximately $14.7 million which is net of accumulated amortization of approximately $1.6 million.

On July 31, 2014, TLC entered into a Sale Leaseback Agreement with CFI NNN Raiders, LLC. The lease was deemed to qualify as a capital lease and the transaction is being accounted for as a sale leaseback agreement. The Company recognized approximately $168,000 of amortization as a result of the deferred gains from the 2014 Sale Leaseback Agreement with CFI NNN Raiders, during the fiscal year ended December 31, 2016 and December 31, 2015, respectively.

Capital leases are further explained in Note (12), Commitments and Contingencies, to the consolidated financial statements included in this report.

Dispositions

During the fiscal year ended December 31, 2016 and December 31, 2015, the sale of property, plant and equipment resulted in proceeds of approximately $303,000 and $936,000, respectively. The gain (loss) on sale of assets, excluding the deferred gain recognized by the 2014 Sale Leaseback Agreement with CFI NNN Raiders, totaled approximately $(632,000) and $489,000, during the fiscal year ended December 31, 2016 and December 31, 2015, respectively

Depreciation and Amortization

A reconciliation of depreciation and amortization to the cash flow statement during the fiscal year ended December 31, 2016 and December 31, 2015, is included below (in thousands):



	2016		2015
Depreciation and amortization included in costs of sales
Related to property, plant and equipment	—		—
Related to capital leases	564		564
Depreciation and amortization in operating expenses
Related to property, plant and equipment	1,116		1,478
Related to capital leases	691		591
Related to intangible assets	701		145
Total depreciation and amortization	$	3,072	$	2,778

The amortization of intangibles is further explained in Note (8), Goodwill and Other Intangible Assets, to the consolidated financial statements included in this report.