Sale of Assets

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

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



(in thousands)	June 30, 2018		December 31, 2017		June 30, 2017
Land	$	29,579	$	22,388	$	23,566
Land improvements and leasehold improvements	68,384		69,127		71,236
Buildings and storage facilities	280,226		284,820		298,077
Machinery and equipment	377,202		373,127		382,321
Construction in progress	37,456		7,502		7,372
	792,847		756,964		782,572
Less: accumulated depreciation	384,272		372,287		359,530
	$	408,575	$	384,677	$	423,042

Depreciation expense on property, plant and equipment was $23.2 million and $24.1 million for the six months ended June 30, 2018 and 2017, respectively. Additionally, depreciation expense on property, plant and equipment was $11.5 million and $12.0 million for the three months ended June 30, 2018 and 2017, respectively.

In June 2018, the Company recorded charges totaling $1.6 million for impairment of property, plant and equipment in the Grain segment related to assets that have been reclassified as assets held for sale at June 30, 2018. In December 2017, the Company recorded charges totaling $10.9 million for impairment of property, plant and equipment in the Grain segment, of which $5.6 million relates to assets that are deemed held and used and $5.3 million related to assets that have been reclassified as assets held for sale at December 31, 2017. 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 the fair value of the impaired assets as Level 3 inputs in the fair value hierarchy.

Rail Group Assets

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



(in thousands)	June 30, 2018		December 31, 2017		June 30, 2017
Rail Group assets leased to others	$	564,555	$	531,391	$	482,524
Less: accumulated depreciation	106,131		107,948		107,432
	$	458,424	$	423,443	$	375,092

Depreciation expense on Rail Group assets leased to others amounted to $12.2 million and $9.7 million for the six months ended June 30, 2018 and 2017, respectively. Additionally, depreciation expense on Rail Group assets leased to others amounted to $6.0 million and $5.0 million for the three months ended June 30, 2018 and 2017, respectively.

In June 2018, the Company recorded charges totaling $4.7 million related to Rail Group assets leased to others that have been reclassified as assets held for sale at June 30, 2018. The Company classified the significant assumptions used to determine the fair value of the impaired assets as Level 3 inputs in the fair value hierarchy.

Sale of Assets

On April 2, 2018, the Company closed on an agreement to sell its grain elevators in Humboldt, Kenton and Dyer, Tennessee for $19.5 million, plus working capital, recording a nominal gain.

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.