Property, Plant, and Equipment

9 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Property, plant, and equipment

Property, Plant and Equipment

Property, plant and equipment consisted of the following:

(dollars in thousands)	September 30, 2016		December 31, 2015
Buildings	$	59,314	$	59,315
Machinery and equipment	49,058		47,234
Computer software	13,087		11,641
Computer equipment	4,523		4,055
Furniture and fixtures	1,743		1,585
Leasehold improvements	1,477		1,413
Land improvements	493		493
Land	366		346
Buildings improvements	184		86
Construction in progress	17,443		3,673
	147,688		129,841
Accumulated depreciation and amortization	(21,406)		(14,681)
Total	$	126,282	$	115,160

Depreciation and amortization expense was approximately $2.3 million and $2.1 million for the three months ended September 30,2016 and 2015, respectively, and approximately $6.8 million and $6.0 million for the nine months ended September 30,2016 and 2015, respectively.

In August of 2016, Heartland and the City of Joplin, Missouri, or Joplin, entered into agreements by which Joplin agreed to issue up to an aggregate principal amount of approximately $83.3 million of industrial revenue bonds to purchase the land on which the current Heartland facility resides and the land on which the expansion of the Heartland facility will reside, and the associated buildings, structures, and fixtures, including the additional manufacturing equipment which will be included in the expansion of the Heartland facility (collectively, the “Property”). Heartland agreed to purchase such industrial revenue bonds and which Property was then agreed to be leased back to Heartland. As Heartland will become the owner of the Property at the end of the lease term, the lease meets the requirements of a capital lease and the equipment and land are recorded as property, plant and equipment our balance sheet. The Company has the right and intends to set-off any obligation to make payments under the lease agreement with the amounts due under the industrial revenue bonds. As of September 30, 2016, Joplin had issued and Heartland had purchased approximately $0.1 million of industrial revenue bonds and Joplin had purchased from, and leased back to, Heartland the land for a corresponding amount.