Gulf Island Fabrication, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

6. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following at December 31 (in thousands):


	Estimated Useful Life		2014		2013
	(in Years)
Land		n/a	$	10,463	$	10,463
Buildings		25		63,837		62,515
Machinery and equipment		3 to 25		228,284		198,611
Furniture and fixtures		3 to 5		5,354		5,143
Transportation equipment		3 to 5		3,748		3,224
Improvements		15		125,265		123,201
Construction in progress		n/a		1,177		7,450

				438,128		410,607
Less accumulated depreciation				213,351		187,052

			$	224,777	$	223,555

The Company leases certain equipment used in the normal course of its operations under month-to-month lease agreements cancelable only by the Company. During 2014, 2013, and 2012, the Company expensed $5.6 million, $9.5 million, and $7.7 million, respectively, related to these leases.

On June 10, 2013, the Company entered into a lease agreement with BRI 1825 Park Ten, LLC for certain office and parking facilities located in Houston, Texas to house its corporate office. Leased premises consist of office space of approximately 4,421 square feet. The term of the lease, which commenced August 1, 2013, is 64 months. The Company has an option to extend the lease term for a period of five (5) years after the expiration date. Additionally, on December 9, 2013, we entered into an amendment to the lease to effectively provide an additional 3,624 square feet of office space. The amendment, among other things, extends the term for both the existing premises and expansion premises to January 31, 2020. The schedule of minimum rental payments for operating leases (in thousands) is as follows:


2015	$	213
2016		217
2017		221
2018		225
2019		229
Thereafter		19

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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