Property Plant and Equipment, Net

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment, Net [Abstract]

Property, Plant and Equipment, Net

PROPERTY, PLANT AND EQUIPMENT, NET

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

	At December 31,
	2018			2017
In thousands
Land	$	15,292		$	15,163
Buildings	104,596			104,763
Leasehold improvements	21,948			20,746
Machinery, office furniture and equipment	287,269			269,417
Construction in process	17,425			27,974
Total	446,530			438,063
Less accumulated depreciation	(262,306		)	(252,611		)
Property, plant and equipment, net	$	184,224		$	185,452

Depreciation expense was $28.6 million, $27.7 million and $27.5 million for 2018, 2017 and 2016, respectively.

The Company is currently implementing new enterprise resource planning ("ERP") systems at both its Aerospace segment and its Distribution segment. For the years ended December 31, 2018, 2017 and 2016, expenses incurred totaled approximately $1.2 million, $1.2 million and $2.0 million, respectively, and capital expenditures totaled $4.1 million, $3.6 million, and $4.1 million, respectively. Total to date ERP system capital expenditures as of December 31, 2018, were $52.3 million. Depreciation expense for the ERP systems for the years ended December 31, 2018, 2017 and 2016, totaled $3.7 million, $3.3 million and $3.9 million, respectively.

Capital Leases

For the year ended December 31, 2018, $11.4 million of assets included in machinery, office furniture and equipment and construction in process were accounted for as capital leases, with the majority of these assets being purchased under the Company's master leasing agreement with PNC Equipment Finance ("PNC"). At December 31, 2018, the Company had accumulated depreciation of $1.5 million associated with these assets. For the year ended December 31, 2017, $7.2 million of assets purchased under the Company's master leasing agreement with PNC and accounted for as capital leases was included in machinery, office furniture and equipment with accumulated depreciation of $0.8 million. Depreciation expense associated with the capital leases was $0.7 million, $0.4 million and $0.3 million for 2018, 2017 and 2016, respectively. See Note 17, Commitments and Contingencies, for a discussion on the master leasing agreement.