Change In Accounting Estimate

3 Months Ended

Mar. 31, 2016

Change In Accounting Estimate [Abstract]

Change In Accounting Estimate

NOTE 20 – CHANGE IN ACCOUNTING ESTIMATE

Based on company policy, we review the reasonableness of our salvage values every three years or when specific events or changes occur. In the first quarter of 2015, we conducted our review and adjusted salvage values due to changes in the market value of scrap steel, which is based on the most recent three-year average price of scrap steel per metric ton. This adjustment resulted in a decrease in salvage values of approximately $0.6 million. The impact of this adjustment on depreciation expense for the three months ended March 31, 2015 was immaterial.  The impact of this adjustment for future periods is also expected to be immaterial.

During the first quarter of 2016, declines in the market value of scrap steel warranted additional review of our salvage values, which resulted in a reduction of approximately $6.9 million. This adjustment increased depreciation expense for the three months ended March 31, 2016 by approximately $0.1 million. We expect a similar impact from this adjustment on depreciation expense in future periods.