Property, Plant and Equipment

9 Months Ended

Sep. 30, 2016

Property Plant And Equipment [Abstract]

Note 4 – Property, Plant and Equipment:

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

	September 30, 2016			December 31, 2015
Refrigeration Equipment	$	59,925,005		$	55,020,179
Machinery and Equipment		39,190,481			21,324,085
Building, Land, and Improvements		24,010,914			15,205,494
Furniture and Office Equipment		3,559,345			2,287,396
Automotive Equipment		317,615			317,292
Leasehold Improvements		141,726			140,672
Construction in Progress		9,610,561			19,388,195
		136,755,647			113,683,313
Less: Accumulated Depreciation and Amortization		(36,749,534	)		(30,890,306	)
	$	100,006,113		$	82,793,007

Depreciation expense related to property, plant and equipment totaled $2,669,278 and $6,830,780 for the three and nine months ended September 30, 2016, respectively, of which $1,241,563 and $2,660,340 was recorded to cost of goods sold for the three and nine months ended September 30, 2016, respectively, with the remainder of depreciation and amortization expense recorded to selling, general and administrative expense.

Depreciation expense related to property, plant and equipment totaled $1,888,244 and $5,455,489 for the three and nine months ended September 30, 2015, respectively, 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, respectively, with the remainder of depreciation and amortization expense recorded to selling, general and administrative expense.

Due to the continued growth of the Company’s fresh pet food sales, the Company has undertaken a capital expansion project at its Freshpet Kitchens manufacturing facility to expand plant capacity and increase distribution. The Company invested $17.4 million in the Freshpet Kitchens expansion during 2016. A portion of the new equipment was placed in service in July 2016. The remainder of the new equipment will be placed in service in the fourth quarter of 2016.