Property, Plant and Equipment

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are as follows (in thousands):

	September 30, 2017			December 31, 2016
Land and land improvements	$	8,103		$	8,080
Buildings and building improvements	78,191			77,021
Machinery and equipment	521,434			517,782
Furniture and fixtures	8,729			9,124
Construction in progress	15,468			10,634
	631,925			622,641
Accumulated depreciation	(440,756		)	(423,729		)
	$	191,169		$	198,912

Sale-Leaseback Transaction

On June 30, 2016, the Company sold the real estate used by one envelope manufacturing facility for net proceeds of $7.9 million and entered into a five year operating lease for the same facility, with options to renew for up to two additional five year periods. In connection with the sale, the Company maintained continuing involvement in one capital improvement project which, under ASC 840 "Leases," resulted in the deferral of sale-leaseback accounting. During the third quarter of 2016, the Company no longer maintained any continuing involvement obligations and accordingly the transaction qualified for sale-leaseback accounting. As a result, during the third quarter of 2016, the Company recorded a gain of approximately $2.1 million in other income, net, in the condensed consolidated statement of operations and a deferred gain of approximately $2.8 million which will be recognized ratably over the original five year lease.