Property, Plant and Equipment

9 Months Ended

Sep. 30, 2015

Property Plant And Equipment [Abstract]

Note 4 – Property, Plant and Equipment:

Property, plant and equipment, net are summarized as follows:

	September 30, 2015			December 31, 2014
Refrigeration Equipment	$	53,210,667		$	47,789,991
Machinery and Equipment		20,169,296			19,677,778
Building, Land, and Improvements		14,991,441			9,985,917
Furniture and Office Equipment		2,023,912			1,826,249
Leasehold Improvements		140,672			627,962
Construction in Progress		12,020,053			1,941,754
Automotive Equipment		317,292			314,885
		102,873,333			82,164,536
Less: Accumulated Depreciation and Amortization		(28,991,200	)		(24,338,575	)
	$	73,882,133		$	57,825,961

Depreciation expense related to property, plant and equipment totaled $1,888,244 and $5,455,489 for the three and nine months ended September 30, 2015, of which $645,033 and $1,896,763 was recorded to cost of goods sold for the three and nine months ended September 30, 2015, with the remainder of depreciation and amortization expense recorded to selling, general and administrative expense. Depreciation expense related to property, plant and equipment totaled $1,601,311 and $4,699,405 for the three and nine months ended September 30, 2014, of which $609,666 and $1,841,150 was recorded to cost of goods sold for the three and nine months ended September 30, 2014, with the remainder of depreciation and amortization expense recorded to selling, general and administrative expense.

During the three months ended March 31, 2014, the Company completed a project to analyze the estimated future years of service on its existing refrigeration equipment. Based on this analysis, the Company estimates that the useful life of its refrigeration equipment increased from 6 to 9 years. The Company applied this change in estimate prospectively, which reduced depreciation by approximately $1.8 million for fiscal year 2014 and is expected to reduce depreciation by $2.0 million for fiscal year 2015. The useful life of the other classes of property, plant and equipment remains unchanged.

In June 2015, the Company purchased a building and 6.5 acres of land adjacent to the Company’s manufacturing facility in Bethlehem, Pennsylvania. The assets have been recorded in Building, Land and Improvements at a cost of approximately $5.0 million, of which approximately $2.1 million was the value of the land, with the remaining portion representing the value of the building. As of September 30, 2015 the previous owner was occupying the land and building but expected to vacate no later than April 1, 2016.