Property, Plant and Equipment

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

The components of Property, plant and equipment, net are as follows:



(in thousands)	September 30, 2017		December 31, 2016		September 30, 2016
Land	$	23,342	$	30,672	$	28,473
Land improvements and leasehold improvements	71,559		79,631		82,908
Buildings and storage facilities	298,951		322,856		319,950
Machinery and equipment	384,422		392,418		393,178
Construction in progress	7,703		12,784		21,284
	785,977		838,361		845,793
Less: accumulated depreciation	366,629		388,309		385,546
	$	419,348	$	450,052	$	460,247

Depreciation expense on property, plant and equipment was $36.0 million and $35.7 million for the nine months ended September 30, 2017 and 2016, respectively. Additionally, depreciation expense on property, plant and equipment was $11.9 million and $12.0 million for the three months ended September 30, 2017 and 2016, respectively.

In December 2016, the Company recorded charges totaling $6.0 million for impairment of property, plant and equipment in the Retail business. This does not include $0.5 million of impairment charges related to software. The Company wrote down the value of these assets to the extent their carrying amounts exceeded fair value. The Company classified the significant assumptions used to determine fair value of the impaired assets as Level 3 inputs in the fair value hierarchy.

In December 2016, the Company also recorded charges totaling $2.3 million for impairment of property, plant and equipment in the Plant Nutrient segment due to the closing of a cob facility.

Rail Group Assets

The components of Rail Group assets leased to others are as follows:



(in thousands)	September 30, 2017		December 31, 2016		September 30, 2016
Rail Group assets leased to others	$	484,214	$	431,571	$	438,211
Less: accumulated depreciation	106,821		104,376		103,810
	$	377,393	$	327,195	$	334,401

Depreciation expense on Rail Group assets leased to others amounted to $14.9 million and $14.0 million for the nine months ended September 30, 2017 and 2016, respectively. Additionally, depreciation expense on Rail Group assets leased to others amounted to $5.2 million and $4.7 million for the three months ended September 30, 2017 and 2016, respectively.

Sale of Assets

During the third quarter of 2017 the Company sold two of its retail properties for $7.6 million and recorded a $5.7 million gain in Other income, net.

On March 31, 2017 the Company sold four farm center locations in Florida for $17.4 million and recorded a $4.7 million gain, net of transaction costs in Other income, net. The sale price included a working capital adjustment of $3.6 million.

On May 2, 2016 the Company sold eight grain and agronomy locations in Iowa for $54.3 million and recorded a nominal gain.